Should I call my CCs?

[rcoveles]

Are you considering chapter 13 because you have assets to protect?

Because to my understanding, the "means test" is only applicable to consumer debt. If your debt is primarily business related you can file chapter 7.

I incurred the debt under my business, but all of it was guaranteed in my name, and it is all unsecured CC debt. The lawyer told me it sounds like a 13 due to my wife's income level. I will know more after our meeting on Friday.

[rcoveles]

Interesting - makes sense I guess. I just was trying to avoid all of the phone calls etc.

I do have Credit Union accounts already in place. Tomorrow, I am going to file for debit cards on them.

[catleg]

Are you considering chapter 13 because you have assets to protect?

Because to my understanding, the "means test" is only applicable to consumer debt. If your debt is primarily business related you can file chapter 7.

[tigergem]

What chapter are you filing? Under Chapter 13 you are not allowed to keep any cc debt and the banks will automatically close your accounts. I'm sorry I cannot advise on any other chapter because I really just don't know. I have read in other threads that if you close cc accounts with some of these banks, they will seize your money in your other accounts. Some people recommend opening an account at a credit union before you file.

Personally, well.. there aren't any credit unions around here that I am eligible for membership in, but I seriously considered Ally Bank (online), only because I have insurance through GMAC and was kind of steered that general direction. I am probably going to open an account with them soon, but I didn't change my banking before filing, and did not have any trouble. My bank was not listed as a creditor though. But I also only had one little secured credit card with my bank (which they closed immediately on event of the BNC notification).

Call them ahead of time and let them know it is coming? Heck no. No way. You can call and close the accounts I guess, sure, if you want to, but you really don't even need to do that. But tell them why? Heck no. Why would you do that? These creditors are not your friends.

Absolutely never tell anyone, especially a creditor that you plan to file BK! All this does is make them move faster to secure their debt and position with judgments, or act to repossess whatever they can...BEFORE you file. Yes, when you file, they will stop calling and trying to collect...BECAUSE THAT IS THE LAW..they can't continue doing so.

[rcoveles]

OK, after stressing and waffling for the past few days - going first toward debt settlement, then to chapter 13, then to Debt Repayment Plan, now back to 13..I was planning on calling all of my card companies tomorrow, and:

A. Canceling all of my cards
B. Asking them to forgive any payments, interest or late fees from now till 3/31, as I am exploring either a DRP or Ch13 (in reality, it is probably going to be 13)

I just figured - why keep the meter running? I know it probably doesn't matter in the end, because they will get what they're getting out of my payments, regardless of what I owe them. Just thought I should be up front. I've abandoned my checking account - it reached zero, but they've paid 2 of my auto pays, and I now have a -$800 balance. I definitely have to call them tomorrow and tell them to either close the account, or at the very least, stop letting things pay!

Also, all of these cards were used in my business. I do have a few (2) personal cards, but unfortunately, they are with some of the same companies I have my business cards with that I'm going to be filing for (Chase = $0 and BOA, where I owe like $1700. Paying off the $1700 would not be a big deal, and a few of my monthly expenses are billed to that card (gym, XM, home security system, Wall st. journal). I usually pay it off in full every month. Also, I do my online bill pay through them, where I pay my phone, Sam's club, and Electric.

Should I cancel this one as well, or should I try to keep it, or are they just going to nuke it on me when I file on my other BOA cards? I've had the card forever, and have an excellent payment history with them on THAT card. In fact, all of my personal finances are fine - it is the business that did me in.

What do you think? Should I call them all and be up front, should I cancel my personal cards too, or should I try to pay and keep at least the BOA card? Will this be seen as preferential payment? If I pay it now, and just charge and pay minimum amounts going forward (the house stuff), will it still get flagged and lumped in?

I'd also like to thank everyone here for trying to make me feel better. I'm sort of coming to terms with this, but I am still stressed beyond belief (how do you exactly know when you're having a nervous breakdown?) I just keep telling myself I'm REORGANIZING, not going bankrupt.