3 mo from cc charge to filing?

[yomama]

Am I correct in understanding that a couple (or individual) should have at least 3 months between their last credit card charge and filing? We currently have 7 credit cards, 6 of which we had turned over to a debt negotiation company last year (which didn't work out). The amounts owed on those cards ranged from $3000-$22,000 at the time. We also had one that we decided to just keep paying on until it was paid off. We owed a little over $700 on that one and just finally got it paid off a couple months ago. For all those months up until just two weeks ago, we didn't make any charges, but my husband said he needed gas one day and had to use his credit card (the one we got paid off). I really wish he hadn't done that if it's going to cause any problems with the bankruptcy. He didn't think it would be a problem since that one is paid off now. When you talk about that 3 month period of time between the last cc charge and filing, does that mean any cc charge at all or just the ones that you're including in the bankruptcy? I really was kind of upset when he said that he made that one just recently so close to the time of our seeing the lawyer for the first time and after a year of not charging at all! So now that I think we're all ready to move ahead with this, he tells me that. I certainly hope that that won't delay this another couple of months. We're getting phone calls and letters from collection agencies because they know now that we are no longer making payments into our trust account that that negotiating company had set up for us, so they undoubtedly know that our next step is bankruptcy. Here I had wanted to get this over with because I'm afraid that they might file a lawsuit against us. They could do that, right?

[Spartan]

Ok, from what I have read so far.

That gas charge which you have paid off, is on a cc that will not be part of the BK proceeding. Non-event. Only those CC you are discharging in your BK proceeding would the 90 day purchase rules apply. SO, nothing to worry about on that cc.

As for the rest of the creditors filing lawsuits, well, they will just be wasting their court fees. All the lawsuit will be stayed and subsequently dismissed, and the debt discharged, when the Bk goes through. What do you have to worry about? If they have reason to believe you are going to file, they certainly wouldn't be bothered to sue.

[yomama]

Spartan, Thank you very much for replying. I feel so much better now! I really was concerned that my husband's one charge would screw things up, but I guess I worried about that needlessly. I think I also don't have to worry about any lawsuits being filed either. My understanding had been that once a person files, the creditors can't come after you anymore, i.e. sueing, but I guess I read more into that than what there was, i.e. that they could sue you before you file for bankruptcy and that that would be allowed and that we might have to pay them then. Heck, we wouldn't even be able to afford to hire an attorney for that yet! The only way we have money for our bankruptcy is from the money we got back from the debt negotiating company. We would have been wise to just skip going that route because that accomplished absolutely nothing but them making about $3000 off of us. We should have just filed last year when we woke up and realized that we were/are in big trouble financially. Thanks very much for putting my fears to rest.

[SinkingFast]

If any of your Creditors sued you before you filed, YoMama, filing BK would stop the lawsuit process dead in it's tracks. Immediately, the automatic stay protection goes into effect and neither the Creditors nor their lawyers can do a thing.

So, get out, get your Consults done. Get your attny picked. Get your docs gathered and turned in. Get the fee paid. Then your ready at any time, if you need be, to file ASAP. If no one sues, then you progress on your own timeline.

To the tank full of gas,........... Unless this was a Semi rig where you could possibly run up a $600+ tab on gas, then there's nothing you have to worry about. The Trustee is gonna be looking for preferential payments to Creditors in excess of $600 total in the last 90 days. As Spartan said, it's not a CC you're including, so it's a non issue if the $$$'s amount was below $600.

As a side note,.......... Take that CC out of Hubby's wallet until after you've filed so he won't be tempted to use it again.

[Emmy]

Sinkingfast, what are the circumstances when a creditor sues and you have to pay it despite bk? Does a creditor have to tell you of his intent to sue when he starts the process? Have you ever heard of a creditor suing before 90 days late? We could get our ducks in a row and file by 90 days late if we needed to because of a lawsuit. Although I'm hoping we can wait a couple months past that so we can renew our lease before filing. I don't know what we'd do if the landlord decided not to renew because of our filing bk. How are you all making it through this? It seems like you quit worrying about one thing only to replace it by a half a dozen new fears.

Yomama, I wish you the best of luck and I'm right there with you trying to figure this whole thing out!

[SinkingFast]

Emmy,............. We didn't pay CC payments for 10 months prior to filing. No law suits.

HHM has often said you can get 12-18 months from the time you stop paying payments to CC's before you'd get sued. From our experience, that's probably generally true.

If you've paid your Creditors for several years in a timely fashion, I think you'd have a while before you'd even begin to have to worry about law suits. Remember, law suits cost money and spent money eats away at profits.

When we got our first Collections Letter threatening legal action, I called our paralegal. This was back the end of May or early June. She had me read the letter to her. The paralegal said the Creditor was just rattling sabres trying to scare us. We didn't file BK until mid September.

My advice would be to get your ducks in a row. Get the attny picked. Turn in your docs. Pay your fees. And wait. If something happens, you're ready to go.

The minute you file, all legal proceedings against you stop because you're under protection of the automatic stay. The only Creditors that will file Motion to Lift Stay are mortgage Lenders and Car Loans. They've got property they'll want to move on selling.

Law suits don't guarantee the Creditor will get paid a penny. Objections during the 60 days after the 341 are what you have to worry about. Generally those are for big cash advances taken shortly before filing.

[Spartan]

Sinkingfast, what are the circumstances when a creditor sues and you have to pay it despite bk? Does a creditor have to tell you of his intent to sue when he starts the process? Have you ever heard of a creditor suing before 90 days late? We could get our ducks in a row and file by 90 days late if we needed to because of a lawsuit. Although I'm hoping we can wait a couple months past that so we can renew our lease before filing. I don't know what we'd do if the landlord decided not to renew because of our filing bk. How are you all making it through this? It seems like you quit worrying about one thing only to replace it by a half a dozen new fears.

Yomama, I wish you the best of luck and I'm right there with you trying to figure this whole thing out!

Usually, the landlord will want you to decide if you are renewing your lease or not, 2 months before the current one expire. If they find out about your Bk proceeding, they would be very unlikely to renew your lease. After you have signed the new lease and are current on the rent, they can't do anything to you.

If it is only a couple months of time window you are seeking, you are pretty safe. Unless you steadfastly tell them you REFUSE to pay. If you tell them you are working on making payment, you will buy yourself lots of time.

[SinkingFast]

As far as your Landlord goes,....... Typically Landlords don't want to rent to new Tenants during an open and active BK. Landlords know anytime in that 90 day window, you can add them as a Creditor and discharge the debt of the Lease.

If you're already in a place and then file BK, you shouldn't have anything to worry about. If your lease would come due during the middle of your BK, it could be tricky if your Landlord should happen to find out. Generally speaking tho, Landlords are happy to have good tenants that pay their rent on time, and don't abuse the property, so they could care less about the Tenant's other business.

[Emmy]

That is what I'm afraid of Spartan. Our lease is up May 1st, I figured on signing a new one April 1st at the latest. If they will sign us again March 1st instead we will have been in default on cc's payments for 3 months and if we have to wait till April, it will be 4 months. Do you know if when you file bk, your landlord is automatically notified like your creditors are?

It took us a long time to find an affordable house to rent. I feel sick at the thought of trying to find another place while in the middle of a bk. I feel like we're doing what we have to do and I'm at whim of the fates. Fingers crossed that the creditors don't sue and force us into filing before we sign a new lease.

[Emmy]

I was typing my last post when you replied Sinkingfast. That gives me a little hope but I will be worried about it until we are safely signed.

[CindyLou]

didn't pay my cc's for 2.5 years before filing. No lawsuits. 40,000 total and working the whole time. BUT my brother got sued by discover after approx. 6 months for a 2000 balance and had no job! go figure!

[SinkingFast]

That is what I'm afraid of Spartan. Our lease is up May 1st, I figured on signing a new one April 1st at the latest. If they will sign us again March 1st instead we will have been in default on cc's payments for 3 months and if we have to wait till April, it will be 4 months. Do you know if when you file bk, your landlord is automatically notified like your creditors are?

It took us a long time to find an affordable house to rent. I feel sick at the thought of trying to find another place while in the middle of a bk. I feel like we're doing what we have to do and I'm at whim of the fates. Fingers crossed that the creditors don't sue and force us into filing before we sign a new lease.

I know from pulling our Credit Reports last spring for attnys when we were 2 months late, none of our accts showed late at the time. By the time we filed BK in Sept, we'd missed 9-10 payments on everything. Our Credit Reports only show a couple 150 day lates. Everything else shows 90-120 days late. Seems Credit Reporting agencies run a bit behind.

I wonder if your Landlord will even bother checking your Credit again if you're renewing an existing lease. You'll have already proven you pay on time by then.

[Spartan]

That is what I'm afraid of Spartan. Our lease is up May 1st, I figured on signing a new one April 1st at the latest. If they will sign us again March 1st instead we will have been in default on cc's payments for 3 months and if we have to wait till April, it will be 4 months. Do you know if when you file bk, your landlord is automatically notified like your creditors are?

It took us a long time to find an affordable house to rent. I feel sick at the thought of trying to find another place while in the middle of a bk. I feel like we're doing what we have to do and I'm at whim of the fates. Fingers crossed that the creditors don't sue and force us into filing before we sign a new lease.

In my experience, landlords prefer to have 2 months time to rent out the soon to be vacated apartment. Check your lease agreement. It should mention on it as to when they would like to be informed as to if you are renewing your lease or not. My bet is 2 months before lease end. That would mean by March 1, they would be ready to type up a new lease for you to sign.

If your rent payment is always current, then it should be a sure in.

I do not know for a fact, whether the landlord would be notified of your BK filing or not. I would think that, if they are NOT included in the BK filing, then there is no reason why they would be notified, just like your boss would not be notified of your BK filing.



If you are only in default for 3 months, you shouldn't be too worried about it. The first 2 would be just plain bills, and some calls. So who cares? lol When it is 90 day past due, you would hear more serious sable rattling from their lawyers. But before you get to that point, you can buy yourself a lot more like by informing them that you are working on making payment. Assuring them that it is just a temporary glitch. And that you are fully on top of the situation.

If you can make partial payment, that would buy you even more time. Just give them all the hint and hope that you are working to smooth things out and you will be making good on all late payment. They will want to work with you.

But the time they finally wise up and get really pissed, it will be 6-9 months already. Suing you cost money and has no guarantee that they will get anything. If they push you into filing, they may end up with nothing. So if they believe you can make good on late payment, and you are still making partial payment, they will be happy to work with you, thus giving you more time.

Nothing is foolproof. But those are tools you can use to help with your situation. I fully appreciate the anxiety and worry that you are going through, living on knife edge until you get the loose end tied up. But if you tell a persuasive story, and make effort to make partial payment, I think you can squeeze past with room to spare. Just makesure you think the story through about what is causing the late payment and what you have in store to allow you to catch up with the late payment. You want them to have hope and thrust in you. Don't give them hint that you are defaulting.

By the time the letter writing and negotiating back and forth, 3 months are easily eaten up. lol

[yomama]

SinkingFast, I just typed a long reply to you a lost it all! Thanks for everything. No, he doesn't have a semi lol and it was only for his car and couldn't have been more than probably $30. I wish I hadn't lost everything that I said.