question about timing and such

[okiemom2008]

Hi everyone I am just full of questions...lol

My husband and I have been through alot of financial mess. We have lived off our credit cards for the last 3 months and used his paychecks to pay our 2 mortgages and rent and our vehicle payment. Our credit cards got us through but it has come to the point where we have no money.

We are not late on anything....yet but we are starting this month because we have run out.

However we are going to have to wait until July 2009 to file because of a stupid thing I did by transfering our debt back in June over to my moms 0% apr credit cards and then paying her back 2 months later by cashing out our retirement(dumb dumb I know)

So basically, we are stuck. We want our credit to show that we made all our payments on time up to 3 months before the bankruptcy but we cannot pay them on time until April. There is just no way.

So basically my husband wants to quit paying all the credit cards...and he is thinking just quitting paying everything but the vehicle and our rent where we live. But...I do not want a repo and late payments and bankruptcy.

I guess my question is...what would you do? Does repo, bankruptcy, and late payments look worse on our credit than just late payments and bankruptcy?

Our credit is in the 750's because we have not been late. But there is just no way...we have called everyone and no one will work with us because they say everyone is trying to set up arrangements and so they have stopped.

Thanks

[JRScott]

It comes down to the fact you can't afford to make the payments and you know you can't. I"d stop paying on the CC. Keep paying your car, rent, and utilities. Yes it will show late payments and your credit will take a ding but if you can't pay it you can't pay it.

I would keep the car paid though as a repo is worse than the late payments. Even with late payments on the credit report and a bankruptcy next year you should be able to recover within 2-3 years of fiscal responsibility after discharge.