?? re: timing of stopping payments to cc

[nervous1]

Did you stop paying ALL creditors at once, or did you continue to pay a few? I currently have 7 cc's, ranging from $60 to $21,000 (by far the highest, 2nd highest is $10,000). I ask because I just met with a BK attorney this week for info only (haven't EVER considered BK until very recently). He said I should stop using and stop paying all. I suppose this was assuming I am going to file BK7 ASAP.

After thinking a little, I decided I should think more about the BK since I am not behind at all on pmts. Well, until today. Amex was due today. Unless things change drastically though, BK is in my future.

To get to my point - I read somewhere on here that Chase was REALLY quick to jump on non-payers. My Chase balance is relatively low ($2,000, used to be $6,500 but, they, looking out for my welfare, cut my limit 2 months ago) and pmt. is about $30 month. Should I keep paying them, just to stave off calls, since my current thinking is that as soon as I get the first "we're going to sue you now" I will file BK? (Unless DHs plan works and we pay off.)

On another note, we were also thinking that once I stop paying, it's possible that we may get some settlement offers. I've tried to work with some of them - called BoA (the high one) 2/3 times in the last few months and tried to work with them. Told them my situation, asked if they could give me a reprieve, lower rate, etc. Nope.

So, should I keep paying the smaller ones, including Chase? And, did you continue to use your cards even after you stopped paying. From what I understand, you should charge AT ALL 90 days out. I'm figuring that I may have 6 months before things start brewing?


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[nervous1]

Correction, make that you should stop

From what I understand, you should STOP charging at least 90 days out.

[LoadedGuns]

Follow the American way and file for bankruptcy regardless of your ability to pay. (Captain Morgan is speaking on my behalf)

[epiphany]

Your lawyer is correct. If you know that you are filing, you are just pissing money away by paying any of them. It sounds as if you are not sure when you are filing...do you need to wait?

You have a good six months before any of them will start to sue you for not paying. Suing takes a few more months after that. There is no rhyme or reason as to who will sue, if any, or when. Some may, some may not. You may not be sued by the creditor to whom you owe 50K that sued me for owing them 1500. There's no way to predict.

I had a Chase account that was not paid for at least 9 months and they did not initiate a lawsuit. HBSC did after 6 months. And I'm pretty sure that Citi was getting ready to over something like 1200.00. There were many more creditors that didn't bother doing anything.

Realize that settlement offers also come with another price. You will have to pay taxes on any debt forgiven.

Oh, and if you know that you are filing, using your credit cards is fraud. It will be overlooked in extreme necessity cases but tread carefully there. You should have at least 3-6 months of non activity before filing. The more the better.

All good questions. Best of luck to you,

ep

[nervous1]

I didn't know much about BK until the last week or so. Still don't

I thought I had to file right away because I feel like I'm in over my head.

After reading here and finding out that the cc's don't come after you immediately after the 1st missed payment, my thinking is that I should wait as long as possible. To plan, save $$$, etc. (and hopefully find another way besides BK). We're also strongly considering selling the house - the only asset in my name.

As far as the "not charging,"....I was doing the "what if" game this morning (about 4AM as usual) and I thought "my computer is really old...I'm sure it's going to die soon and that's my ONLY way of making $$$ now." (I have an online business.) I thought maybe I should buy another one real quick, then cut up all my cards. That way there would hopefully be no charges for at least 6 months. The computer I'm looking at is about $600.

Is that awful of me? I'm having a hard enough time dealing with the thot of not paying my debts, so you have to believe me when I say that purposely putting something on a cc that I think I won't ever pay for makes me feel really guilty. My justification is that I KNOW I HAVE to support my family. The cc's are not my friends, have so far refused to work with me, etc.

[kartoons19]

I stopped paying all of my CCs four months ago. I also stopped using them the month before I stopped making payments, as I realized I was probably going to file bk. I have two Chase cards (14K for both) and they did start calling after 30 days late and did make a few offers of settlement, which I still couldn't afford. Once I retained an attorney, I gave all of my creditors her info and while a few still call, I haven't received one call from Chase. You still have some time.

Given that you already retained an attorney, using the credit card would probably raise a flag. I would talk to your attorney before using any of your cards. Good luck.

[nervous1]

Clarification

I have not yet retained an attorney. All I have done is meet with one for information. That's it. All cc's are up to date, with the exception of Amex, which was due yesterday.

[ForumReader]

Follow the American way and file for bankruptcy regardless of your ability to pay. (Captain Morgan is speaking on my behalf)

..the American way, that is one way to put in with the way things are going in the USA!

To the OP, I agree with some of the posters that if you are seriously considering filing for BK and has met with a BK attorney, then you have plenty of time to file before any suing starts, so I suggest stop paying CCs and using them as well. At once if you want to file for BK. Good luck!

[nervous1]

so....if I file BK in Dec.10/Jan.11, I should NOT use a card for a $600 computer? I realize how selfish that sounds, but the computer right now is my lifeline to ANY kind of income. Mine is 6 years old, already been repaired a couple of times. I don't have the extra $$$ (even not paying cc's, because I was charging utilities just to pay them).

[ForumReader]

so....if I file BK in Dec.10/Jan.11, I should NOT use a card for a $600 computer? I realize how selfish that sounds, but the computer right now is my lifeline to ANY kind of income. Mine is 6 years old, already been repaired a couple of times. I don't have the extra $$$ (even not paying cc's, because I was charging utilities just to pay them).

It may sound selfish to do that especially if you know you are insolvent and will file for bk eventually. If you are seriously considering filing for bk and need a new computer, perhaps you can ask for a loan from a relative or a close friend who can get you a new computer and you can always pay him or her back after you have been discharged from your bk. Would that work? I would not risk my bk if I plopped $600 some dollars on a cc and make minimum payments then file for bk only to get possible problems from the creditor(s) you just never know. Please plan carefully and ask, ask and ask questions to an bk attorney if you decide to hire one.

[flyinbroke]

I stopped paying those that I had to stop using thanks to ratejacking once I could not afford it with the exception of Chase. Even though Chase was a dead card for the same reason, the low balance combined with their quickness to sue keeps me paying. I stopped paying 5 accounts with 3 banks.

The remainder were either tied to secured assets, tied to bank accounts and/or have not screwed me over. I sought BK attorneys and found out I can only get a 13 with nearly 100 percent payback. With no assets to protect and living in a consumer friendly state, I decided to not file.

Now three are charged off, and I am suing the collection agencies who inevitably break the rules. One settled already, one has offered a ridiculously lowball settlement offer and one has blown my attorney off so far. They have about ten days before their time is up though. The OCs will be hearing from the lawyer since they hired the lawbreakers and are thus liable for them.

I found a way that works for me; YMMV.

[Rick9972]

To get to the heart of your question it boils down to:

1. You need a computer to earn income for your family.
2. You can buy said computer currently with a CC.
3. You "May" file BK later this year if things do not change.
4. Worse thing happens if you file BK is the CC company protests the $600 charge and you have to pay it. Note: *shrugs* protesting one charge on a CC is expensive and not sure if $600 is worth it. More than likely they will send a letter to you and your attorney threatening to protest and ask for a settlement. Your attorney will evaluate the threat and do his lawyer stuff and then let you know what to do then.

Mine told the CC, if they felt lucky go ahead and file their protest for $700. We never heard another word.

[Fresh]

You do have time, but I agree with what Ephiphany said about you just don't know whether you will be sued and by whom. The general trend, especially if you look through the archives here, is that more and more people are getting sued earlier. I think there was someone sued by AMEX after 3 months. Last year, that was unheard of. I came here then and there were people who had been through one collection agency after another for a period of years.

Frankly, if you have the money together to retain an attorney, I would do it pronto. I have never read anyone post here where an attorney indicated to keep paying the small ones or whatever. It's always: let them all go. When I retained my attorney, I had let all of them go. I think I had let all but Capital One go (2 accounts) before I met with the attorney and he said: just let those go, too. Only reason I had kept them was for an emergency. I had some room on those cards, but never charged more than $100. Isn't that $600 at "luxury purchase" level in form (price) if not in fact (work necessity)? I'm with Forum Reader---I wouldn't touch that with a ten foot pole. Besides, there are plenty of computers (notebooks and desktops) that are cheaper and would more than serve your purposes.

You had said something about if you stop paying, can you still use them. Well, that just seems a bit over the top. Besides, your purchases would likely be denied by the credit card company.

I would suggest that you sit somewhere quietly with all your bills and do some math. See what money you have for necessities, then what's left over and decide what you need to let go.

Please do not get involved with any debt consolidation companies. Too many people have been burned. And, the tax man cometh for any debt forgiven by the credit card companies. Just don't go there unless you feel that it's worth it financially to you.

~Fresh~

P.S. I know you are scared. I think most of us here were when we arrived here. I was terrified, but thanks to several here facing and dealing with what had to be was necessary.

[tay666]

I don't have the extra $$$ (even not paying cc's, because I was charging utilities just to pay them).

I suggest you sit down and figure out your finances.
IF you cannot afford to live without the credit cards, then banrupcy is not going to help you. You will end up in debt after it is all over.

Look at your budget without any CC payments.
Can you afford the roof over your head, your utilities, transportation, and food?
If so, good.
If not, then youi have some decisions to make.
You can either increase your income, or reduce your expenses.

Either way, you need to figure that out, before you file BK.

[pepperoncini]

I'm nervous about being sued as well.

I stopped making full payment on four Chase accts. one year ago. I made "token payments" for three additional months and defaulted entirely 9 months ago.

Those accts have been charged off and are all with collection agencies now. We have not been sued, but with the combined balance on two of those accts at more than $15K...I'm wondering how long they'll stay quiet.

We have retained our atty for BK13...just trying to delay for a awhile now.