Accumulating Cash Before Filing BK by not Paying Creditors

[Kristy12]

Kristy, we know it's nerve wracking.... but only the first time.

Pretend we are holding your hand. Because we are, in the best virtual way, and we are.

What a nice thought! Thank you all.

[Floridagail]

One thing I did with my credit cards was, I went in on each account and removed my bank account information and removed my cell # contact numbers. I did also print a few statements, however I never did need them. I then opened a bank account to start fresh
with a bank, I did not owe any cc or any credit. . I left my CU open with 10.00 , somehow hoping I could keep it, but since I owed them for a loan, I figured I would lose it. They did stop my debit card on CU , so I did close it. I also printed our my free annual credit reports . My attorney never did ask for them.

[Kristy12]

Thank you. I' m afraid I'll have to open another checking account at a local bank too, and stop having my paychecks directly deposited to the credit union. I'm pretty sure that the CU would take my payroll monies to offset the loans of mine I suddenly stopped paying!

How far in advance do you recommend opening up the alternate bank accounts prior to filing? And I suppose my credit union will know something is up when I stop depositing my paycheck with them after 25 years of customer support?

[ksgirl38]

Thank you. I' m afraid I'll have to open another checking account at a local bank too, and stop having my paychecks directly deposited to the credit union. I'm pretty sure that the CU would take my payroll monies to offset the loans of mine I suddenly stopped paying!

How far in advance do you recommend opening up the alternate bank accounts prior to filing? And I suppose my credit union will know something is up when I stop depositing my paycheck with them after 25 years of customer support?

I think I opened a new account maybe a month before filing and it was a non issue. Of course, I didn't have any loans at any banks, but people change banks every day for various reasons.

[Floridagail]

Definately do it b4 stop paying their loan, I left a few dollars in my old account. I stupidly kept paying the loan, right up the filing. Now all my cc chargoffs are falling off my credit report , but the Cu is still there due to me doing that. I stopped paying 2006, did not file bankruptcy until jan 09.

[LadyInTheRed]

How far in advance do you recommend opening up the alternate bank accounts prior to filing?

I don't think it makes any difference as long as you report everything correctly on your petition and have a record of transfers between the old account and new account so it doesn't look like you are hiding cash.

[ccmisery]

Whatever you do, do not open a checking or savings account with Wells Fargo, no matter what they will freeze your account on first notice of a BK. Also if you have Capital One or Chase unsecured debt and have a bank account with them, drain your money out into another account. I have ING now known as Capital One 360, which I am in the process of winding down since I owe debt to Capital One, not much but I am not taking any chances with them. I use to have a Wells Fargo account, but closed it last year.

Just make sure to get your statements saved before you close any account.

[ccmisery]

Kristy, we know it's nerve wracking.... but only the first time.

If you are filing, stop paying the cc's. You are Bankrupt and can no longer afford to pay them. Harsh reality but it is what it is. Heck we are all there with you in the same boat. Pretend we are holding your hand. Because we are, in the best virtual way, and we have your back.

But prepare yourself first by getting Google Voice and printing out any statements you don't currently have. Eventually your access will be blocked.

So you mean that they will eventually block your access to your online statements as well?

Google Voice is nice for blocking unwanted calls, I use a voip phone service which let's me block calls, the phone never rings but I can see who calls by logging in to my account. Options for blocking are numerous, busy tone, number disconnected and etc. They call everyday up to 10 times plus a day.

The honest person in me doesn't like blocking them, but I am bankrupt nothing I can do at this point.

[Sammie]

Kristy,

yes, we had both Chase & WF for Mortgages. We changed to a small bank the month before we filed. As soon as we did, Chase & WF blocked access to your online statements & they stopped sending statements all together in the mail. By law they cannot send you statements after you file for bk. sammie

[LadyInTheRed]

So you mean that they will eventually block your access to your online statements as well?.

Yes. With few exceptions, creditors will block online access to a BK debtor's credit card and mortgage accounts.

The honest person in me doesn't like blocking them, but I am bankrupt nothing I can do at this point.

There is nothing dishonest about blocking phone calls from collectors. You have no obligation to talk to somebody just because they decide to call you. Don't feel bad about blocking calls from people who will call several times a day even if you ask them not to.

By law they cannot send you statements after you file for bk

Mortgage companies and other secured creditors who you are paing during a Chap 13 may continue to send "informational" statements with language stating that they are not trying to collect a debt.