How many of your creditors filed a claim?

[PhilN]

Newbie, I believe that CityGirl is talking about paying off her under-$500 creditors *before* she files. As long as she stays under $600 total paid to any one creditor in the 90 days before she files, it's fine to do that. And when balances are zero, then those creditors do NOT have to be listed when you file. It could help her with her credit score a bit after her case is closed.

State of Florida
Quick question....

I am filing for ch13 next week and I have been paying all my credit cards minimum payments up till now. My one credit card is $320/month, which I have been paying the past 3 months. Now my lawyer doesn't seemed concerned. Will this truely be an issue??

-Phil

[lrprn]

State of Florida ... I am filing for ch13 next week and I have been paying all my credit cards minimum payments up till now. My one credit card is $320/month, which I have been paying the past 3 months. Now my lawyer doesn't seemed concerned. Will this truely be an issue??

It isn't an issue for you to worry about at all, Phil.

If your trustee thinks that you paying any of your credit cards more than $600 total during the 90 days before filing qualifies as a preferential payment, the trustee will contact the credit card company directly and demand back all the money you paid them.

If this does happen (probably won't), it won't impact you at all, even if the cc that has to return money files a claim to be paid whatever % is available in your case.

[CindyLou]

Hi CityGirl,
I've seen your posts here recently....welcome to the forum. In reference to paying some of your creditors to save your credit. I would caution you that trying to save your credit during a bK should be the last thing on your mind. Getting a fresh financial start and getting back on track should be first and foremost on your mind. Your credit score will come back in time. Save every penny you can at this time for your necessities and let the BK work out the payments to your creditors. Have you seen some attorneys yet to give you some advice? You mentioned that paying these payments will not put your BK in jeopordy, I agree, but I don't think that's the point. I think its about directing that money to where it needs to be....to things that may have been neglected recently....medical care, dental care, automobile repairs, eyeglasses, etc, etc, instead of paying a credit card company only to possibly have the trustee take the money back and keep it. Hope this advice helps. Again, welcome and take care of yourself!

[CityGirl]

Hi Cindylynn,
I don't want to file until November because my income is too high. I dont want my phone to ring day and night with creditors either. Paying the minimums is fine, it's my AMEX I'm worried about. It's a business credit card that I'm supposed to pay off each month but I owe 3500 this month and I have another 3500 for next month. Its not in my company's name or anything but I doubt amex will work with me. I'd have it paid off before I filed for sure.
I can afford my minimums right now and if I have a good commission check at work, it's ok.
I just want to get rid of this debt once and for all, chapter 13 is fine.

[CindyLou]

Amex may or may not even file a claim, who knows....so you could end up paying them nothing who knows.....but you can't pay them the 3500 now for sure! Even it they do decide to pursue legal action, I think it will take longer than November for them to to get a judgement and then enforce and collect. The general opinion on this website and in most literature you will read regarding BK is that once you decide to file you should stop paying your credit cards, but keep paying your secured creditors such as rent, mortgage, car payments, and also living expesenses such as food gas, medical expenses, etc, etc. Paying credit cards to make you feel better or to keep your phone from ringing serves no purpose except to make you feel better and to keep your phone from ringing a few more days. Hang in there, girl, you'll be fine! Turn off that ringer or change that number! Make a decision either way, commit to it, don't feel guiltly, and don't feel intimidated by the phone calls or by not paying the miminums. I can see from your posts that you seem uncomfortable with the finality of just "giving up" that last bit of control over your debt. You have to either make the choice to do this BK or decide that you are not ready and keep scraping the money to pay your minimums til you can't go anymore. Its 100% your choice, but you have to be ready! I'm not sure If I've seen your answer yet to whether you've seen a few attorney's for free consulations??

[CityGirl]

Hi Cindylynn,
Yes, I have an appt on Tuesday with an attorney but we've spoken already as well.
I can't have the phone ring. I live with my sister and even though her phone isn't listed on anything of mine, they do skip tracing. I DO NOT want her to find out ANYTHING. This is very very important and I have my reasons. I CAN'T let her find out. This is why I'm trying to scramble. I DO have a few big commission checks that may happen and to hold off Amex and try to come to a payment arrangement right now is what I'm trying to do. I will then in Nov/Dec, file either 13 or 7. I'm thinking it'll be 13, but I don't care. I need to organize my debt. it's 18 different cards and it's nuts!!! The reason I'm waiting to file is because my income was very high from January to May. Also, I made some purchases on credit and I don't want any within the three months previous to me filing in order to avoid red flags.

I do have one question. My paycheck varies every pay period. I get paid every other week. One paycheck for two weeks gross may be 1100 and another may be 3500. How does the trustee come up with a payment? This is what I'm going to ask my atty. I know someone said an average, but seriously, I can make $40K one year and $80K the next.

[whatamess]

Hi citygirl
My husbands pay can vary like yours. Take the last six months worth, add them up. Get the six month average. It will be somewhere in between the largest and smallest.
Its a pain, because people like us NEVER know what we will make nor when.
WAM