To wait or not to wait???

[jwmc1]

I have many credit card accounts, some are past due with the original creditor, some are in collections with a 3rd party, and some are current or less than 30 days past due. Here is the deal; I am 2 years behind on my property taxes and I owe federal income taxes. I have pretty much come to grips with the fact I will file, so I decided today to stop making any payments on unsecured debt and concentrate on bringing my mortgage current and paying my taxes. I plan to delay filing until I absolutely have to. Does it make sense to delay the filing? I am hoping that during the delay I might be able to make deals with some of the creditors, but regardless, I need to get the important things paid. I hope I am doing the right thing.

[HHM]

How do you define "absolutely have to".

Ask yourself this, how long do you want to be dealing with this debt. The longer you wait, the longer this will be an issue and the longer it will take for you to financially recover.

The chapter 13 will allow you to pay taxes in the plan. Go see some attorneys, given your circumstances as you describe them, I SEE NO benefit in waiting.

[AngelinaCat]

I plan to delay filing until I absolutely have to. Does it make sense to delay the filing? I am hoping that during the delay I might be able to make deals with some of the creditors, but regardless, I need to get the important things paid. I hope I am doing the right thing.

Yes it does make perfect sense to delay filing. This is to allow any large CC purchases or other large transactions within the last 180 days (six months) fall off the radar.

This also allows you to build up the funds necessary to pay a BK attorney. And you are wise if you build up a cash 'Emergency Fund'. One never knows when the car will die, or a family member gets sick.

As far as trying to settle with CCs, as they are 'unsecured' creditors, any money you give to them is like throwing it down the toilet. Don't do it. Also stay away from any of the Debt Consolidation firms you hear advertised on the radio, TV, or newspapers--98% of them are SCAMS.

Good wishes go to you~~

[AngelinaCat]

Hi HHM. I took this as though he might end up filing a Ch7.

[jwmc1]

I plan to see an attorney next week, but I do not see the point in shelling out hundreds of dollars this month. I want to get current on my mortgages before I file, I just think it makes sense, perhaps I am wrong.

[jwmc1]

I am considering an attempt at Chapter 7 since my mortgage expense is much higher than the amount allowed in the means test...I don't know. I will get with an attorney and discuss it. I have wiped myself out and think I need to try and get some money together before I file.

[rrockinggramma]

create a list of priorities. I would think mortgage and property taxes and IRS would be at the top of the list. Then vehicles. And I would let everything else go. I would live on cash and cut up all of the credit cards but keep all of the statements and try to keep track of which collection agency has the debt (keep a running list so you will be current on it when you file as you will need all of that information) and then once you are caught up, go for it.

expect lots of phone calls and harrassment and also remember that you could be IRS liable for the difference of what you settle for and what you owe with debt settled for less.