That's It

[ConfusedinOC]

I'm done with paying the credit card companies. I can no longer continue to pay them while they continue to raise my interest rates without me ever making a late payment. This coming month will be the first time I will not make my payments. I will most likely file CH 13 unless I can settle something reasonable with the creditors (highly unllikely).

My question is should I continue to pay some creditors if I can? In particular there are two that I owe about $800 each. They are both secured debt, I bout kitchen appliances that I fear they may want back if I don't pay. Should I pay them back?

[Faust]

I would go all or none. But whatever works for your situation!

Good luck to you!

[NoTomatoCan]

Confused - Are you sure the kitchen appliances are really secured? (just checking) If you bought them from some place like Best Buy, Home Depot, or Lowes then chances are they are not.

[ConfusedinOC]

The first was at Pacific Sales and the creditor is GE.

The second are some pots and pans my wife bought. The creditor is Equitable Acceptance Corporation. This one does not show up on my wifes credit report.

[optimistic1]

Confused - Are you sure the kitchen appliances are really secured? (just checking) If you bought them from some place like Best Buy, Home Depot, or Lowes then chances are they are not.

Thats up for debate really, if it was stuff you bought along time ago, they have no interest in retrieving them. They will send it out to a CA or CA/Law Office, and act like they will take it back from you, but they really are just looking for money.

[BKDefender]

You'll get some unsecured creditors claiming they're secured. The biggest one is American General Finance who will want you to reaffirm debt on something you bought from a business that AGF finances for. They'll tell you that you paid $1,500 for your couch, that it's worth $500, and they want you to reaffirm $500. They'll threaten that they'll repossess it. Tell them that you won't reaffirm and that you had to put the couch out by your garage because you could no longer take the smell of your dog pissing on it all day and they're welcome to come take it. Well - even if you don't tell them the last thing they still won't come and repo it, they rarely do. I just stick their letters in my file and ignore them.

--William

[BCA2009]

I would go all or none. But whatever works for your situation!

Good luck to you!

I agree, generally speaking, if you have truly reached the point where you can't meet your payments and are ready for BK, then stop all together. No sense in making more payments on something that will be discharged in BK. Save your money for the attorney. And, nobody wants to repo a used appliance or pots and pans.

[ConfusedinOC]

Thanks for the responses. I will just stop paying everyone equally and let the chips fall where they will.