Negotiate with cc companies before filing or not

[mintz]

I have had a few cc companies want to negotiate a better rate since we are having difficulties paying all our cc bills. We will more than likely file sometime in July or August.

Should we negotiate with them to reduce or payments?

Skip a month or two and extend the loan?

Just not pay since we are going to file anyway?

Should we negotiate any secured loans we intend on keeping?

Do lowering the payments on your secured loans hurt you means score?

[Tromploi]

I have had a few cc companies want to negotiate a better rate since we are having difficulties paying all our cc bills. We will more than likely file sometime in July or August.

Should we negotiate with them to reduce or payments?

Skip a month or two and extend the loan?

Just not pay since we are going to file anyway?

Should we negotiate any secured loans we intend on keeping?

Do lowering the payments on your secured loans hurt you means score?

Any balance that they lower, you will get a 1099 for the difference. Reduction in debt is considered income. IF you are insolvent when you receive the 1099 it's a non issue, but most people don't know about the 1099.

Why continue to pay when you're going to file? Stop paying and stop using them if you haven't already. If you continue to pay some and not others it's looked upon as preferential payments and could cause you more problems (although reading some FAQ's from HHM this might be over rated).

Think about it, the more expenses you have that are allowable, the better chance you have of passing means. Why would you negotiate anything down prior to filing? After discharge, YES! But not before.

[mintz]

Thanks Tromp, we quit charging on the cards last month. We did not charge much, just some necessities like clothes and some home repairs. We are not planning on using them anymore