When did you stop paying and/or using your CC?

[GWBcasualty]

For all of you that successfully went through Ch 7.

I don't know if I will have to file, I am fighting but as everyone knows business stinks right now... I believe I can make it through 2009 and hopefully the economy will pick up and I will not have to file.

I have never missed a payment and still have about 20K of credit available.

How long before filing did you stop using CCs for necessities?
How long before filing did you stop paying your CC bills?

TIA.

[optimistic1]

I stopped using in October.

I never used Credit for neccessities to begin with, only junk that I didnt really need.

I am planning on filing in September, which will be 11 months.

Why not just get your own bailout and file for a fresh start?

[pak511]

We haven't been discharged yet:
filed 12/2/08
341 on 1/7/09
60 days up on 3/9/09


Had our first meeting with the attorney end of August 08. He told us to stop paying and stop using the cards and told us that we could make payments towards his fee but that it had to be paid in full before we filed. Paid him in full in October. Looking back I understand why he didn't file until 12/2/09- he wanted the 90 days between the last charge and filing.

It seems to be the rule here that you want to stop charging at least 90 days prior to filing to avoid "abuse" problems(maybe more for cash advances). We were never late prior to Sept 08. The next 3 months were the hardest, constant ringing of the phone. Have caller ID so we just learned to ignore it. No more than 2 weeks after filing the phone fell silent.

Beware of depending on that $20,000 available on the CC. As our balances got close to the limit on some cards, other cards started to drop the available credit. I think once your to the point that your using the CC for basic necessities, it's time to consult with a lawyer.

Best of luck.

[bkchap7filer]

Well, I didn't pre plan....may have just gotten lucky...but used the credit cards up until the week I retained an attorney (2 weeks before filing). No issues for me. No large purchases either. One cash advance check for $2k on a capital one account at about 2-3 months before retaining attorney. Not a peep from them. No issues on using my cards. Again, maybe I had a nice trustee and got lucky? I don't know.

[GWBcasualty]

We haven't been discharged yet:
filed 12/2/08
341 on 1/7/09
60 days up on 3/9/09

I think once your to the point that your using the CC for basic necessities, it's time to consult with a lawyer.

Best of luck.

Rephrase... I had to use credit from CCs as in the past few months business as been slower and the cash flow from the business hasn't been enough to cover my expenses (including obviously the CC payments).

I am aware of the situation, I also know that my business has always been profitable (10 years)... sadly I couldn't predict such an harsh downturn. I don't think anyone can predict how long it will last.
However I am a sole proprietorship, I put 10 years of my life in my business and wouldn't want to lose it.

Irony is that without the CC payments, even with current slowdown I would be able to pay my living expenses and mortgage.

Maybe I should incorporate? But than how much time should pass before they can look at it as fraudulent?

[drowningNdebt]

I stopped paying on my credit cards in November. Not because I didn't want to pay them but because I can't! However, I plan on filing in May. Attorney said Feb but I prefer to wait a bit longer to be safe. I'm unemployed and starting a job saturday. Doesn't pay Jack though just enough to pay my rent and car and I will be just squeezing by! This economy is tuff!

[Trixie007]

By the time we file it will have been 10 1/2 mos from last credit card use, 12 mos from last BT check. For payments, it will be anywhere from 8-11 mos from the last full payments to cc's.

[bkchap7filer]

Oh yeah and I was current on all of my payments at the time I filed.

[GWBcasualty]

For payments, it will be anywhere from 8-11 mos from the last full payments to cc's.

Did they attempt to collect from your bank account? Are you receiving many calls?

90% of my sales are CC sales, but I do not have any debt with the institutions were the CC are processed nor do I have any debt with the bank where I have my checking account.

[Trixie007]

Did they attempt to collect from your bank account? Are you receiving many calls?

No, they never attempted to collect from my bank account - I believe they need a judgement to be able to do that as I did not do my banking with any of the cc companies.

Yes, at one point I was getting between 80-120 calls a day (10 accounts after all!). I think it's slowed down a bit. Maybe 50 or 60 a day? I don't really pay attention any more... Everyone has my cell phone number and I assign their numbers the extra special "Mute" ring tone, so only the Unknown callers actually ring, maybe 5 or 6 times a day and I just hit the ignore button. When I want to talk to a creditor I prefer to do it on my schedule when I'm mentally prepared and have all my spreadsheets in front of me.

[GWBcasualty]

Wow...

10 months with 60 calls a day??

I don't know how you can manage... how long do you plan on holding them off before filing?

[gymbo]

Just stopped

I just stopped paying my cc's last week... and I'm freaking out about it. Partly because we've been living on them - and now we can't... but the attorney told us to stop paying, and to be honest, I think forced compliance is the only way I could stop using them. I told DH tonight I am feeling anxiety just for the fact I don't have a CC that would work right now if I "needed" it... We are filing soon - atty didn't seem concerned about the fact we were still using them - He only asked if we made and balance transfers or luxury purchases. (We didn't)

Because we did not pay our CC bills, we actually have money in the bank, but we've never been late - and it's a very unsettling feeling for me!!!

[DisneyGirl]

We stopped using them in Feb 04 and filed in May 04. As for not paying, we kept paying until we filed.

[Trixie007]

10 months with 60 calls a day??

I don't know how you can manage... how long do you plan on holding them off before filing?

... Or more! We plan to file Apr 14th as long as all they do is call! I really don't give it much thought anymore.

[happy_ira]

My added $0.02.:

Credit card usage and timing of charges is a huge source of anxiety on here. As long as you follow the law (no preferential payments, no balance txfrs within 70 days of filing, etc.), you should be okay... in terms of legality.

IMHO, that does not mean that the BK Trustee will or will not questions. S/he could ask for 2 years worth of past statements if s/he wants it. (At my 341, a woman before me got nailed and the BK Trustee said he wanted to review charges and what she bought (to see if there were assets for him to sell).)

When I met with my first atty (I changed horses in mid-race) I told him the truth: I had $150k in cc debt, of which lots of it were balance transfers to cover bills paid out of my bank acct. He was NOT perturbed. He said "hey, you gotta pay the bills somewhere. As long as there are no balance transfers within 70 days prior to filing, you will be okay. If the trustee asks for statements and sees the transfers over the past two years, you'll just tell him it was used for paying bills and so on. Just be honest. Balance transfers (not within 70 days) do not disqualify you from a chapter 7 petition."

Re-read the above twice if you have balance transfers and check with your attorney.

Many people try to stop using the credit card for any type of spending 2 months prior.... but check the law. Others have commented wisely above.

One point... if you "can make it in 2009" as you said, then you may not be able to show (prove to Trustee) that you are indeed "negative" on your I and J scheds... and thus not a Ch 7 case. Might want to think about that.