Should I advise creditors I may be filing bankruptcy?

[sirrex2]

Ok, so either I am going to negotiate a way reduced payment in six months if I can borrow the money or file bankruptcy.

My husband died in 2007, and we were receiving SSI, but now that she has graduated, those payments will stop, cutting my income in half. sometimes life just sucks.

Should I send a letter to all of my creditors explaining my situation and that I may have to file bankruptcy?

How do I stop all the phone calls about why I have dropped out of my consumer credit counseling program? (I about about 7,000 in credit cards, and my house will probably go into foreclosure in July)

Any advice would be forever appreciated.

Lilly

[MSbklawyer]

If what you are trying to accomplish by sending letters telling your creditors telling them that you are 'thinking about filing bankruptcy' is to stop the phone calls, save yourself the postage expense. It won't work. Oh, they may ask you first when they call whether you've actually filed yet. But when you answer 'no', then they'll proceed to attempt to collect.

That you are thinking about filing bankruptcy has no legal effect on your creditors whatsoever and means absolutely nothing to them.

Think about it. Can you see a creditor saying: Oh gosh, this lady is thinking about filing bankruptcy. So we should just give up on trying to get our money out of her, otherwise she may file for bankruptcy and we won't be able to get our money out of her. To borrow a line from a movie, "That don't make no sense".

[frogger]

Should I send a letter to all of my creditors explaining my situation and that I may have to file bankruptcy?


Lilly

Hi Lilly,

To be blunt here, the only thing that your creditors will hear is that you're not going to pay them.

If I had a nickle for each time that someone told me there were thinking about filing bankruptcy, had seen a lawyer, and had filed bankruptcy, I would be rich!

MSLawyer gave you excellent advice above.

Bankruptcy is a business decision for you, just as extending you credit was a business decision for your creditors. Do what is best for you and yours. Good luck to you.