File or wait?

[bf2bf]

Some people suggest to stop paying the unsecured creditors for 3 to 6 months before filing and use any remaining savings for necessary repairs, etc.

Is this a good strategy or should one file immediately when they realize they will no longer be able to pay all their debts due to decreased income or other hardship?

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[Tbornetun]

The suggestion is more to stop using the credit cards 3 to 6 months before filing. When you stop paying them is really not an issue. As long as you aren't paying them more than the minimum due every month it really shouldn't matter.

[bf2bf]

The suggestion is more to stop using the credit cards 3 to 6 months before filing. When you stop paying them is really not an issue. As long as you aren't paying them more than the minimum due every month it really shouldn't matter.

So in regards to credit cards, is there any advantage in waiting an additional 3-4 months even if you haven't been using the cards for 3 to 6 months already?

And are there any specific type of charges or cash advances that are looked at even if they have been charged longer than 6 months ago?

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[justplaintired]

Any cash advance, or balance transfer can be looked at. We quit paying and charging long before we filed. This was our choice, and had lots to do with stimulus check last year, and a charge we didn't want a problem with. I am unsure if we did the right thing or not, but either way, we waited a little over 1 1/2 yrs to file.

[killinstinct]

I believe the only difference is that if you continue to pay the minimum payments up until you file, your credit score is damaged a bit less and you will be able to obtain credit post-BK more quickly. However, if you stop paying for several months before filing, of course you will have 30, 60, 90 day "lates" on your credit report even after you file, which damages your score more. But in the situation of bankruptcy, this is all just relative. You are wreaking the greatest possible havoc on your credit score with a BK, if you care about this sort of thing.

Remember why you are filing and that you MUST find a way to survive post-BK without credit. If you can't, there's no point in filing. You have more adjustments to make to your lifestyle.

[jribe]

Some people suggest to stop paying the unsecured creditors for 3 to 6 months before filing and use any remaining savings for necessary repairs, etc.

Is this a good strategy or should one file immediately when they realize they will no longer be able to pay all their debts due to decreased income or other hardship?

.

it's really more of a personal decision and based on your unique circumstance. Some have recent charges that they need to put time between; others follow the reasoning that if they pay up to filing they're credit won't be damaged some much; some have a hard time not paying their cards (guilt); some people may be able to turn things around if a situation changes; etc.

If you don't mind harrassing creditor calls and the like- it's a good way to save up money. If you don't want to deal with that- you can file right away.

whatever you preference.

[LuciluS]

It will be about 11 months between the time we stopped paying on our credit cards and the actual filing of Bankruptcy (9/30/09). I do believe your credit score takes a bigger hit, but like someone said the Biggest Hit is the Bankruptcy itself on your Credit Score. It wouldn't surprise me one iota, if there wasn't an alteration in determining Credit Scores in the near future.

I do know this much. The first couple of months of going without using Credit Cards was one of the hardest things we've ever had to do. I thought juggling Balance Transfers from one card to another to survive the last 3 years was hard - NOT! Try juggling money you don't have and Need!

I am glad we have waited as hubby was seriously ill (hospitalized for a week) in April and off work most of the month. The bills are beginning to come in. We owe the hospital after insurance paid $1,695.12. There is no way we would be able to pay that bill. We are both walking medical patients..no joke. Both of our insurances have co-pays and our prescription bill after insurance pays is Astronomical each month.

Hubby's work has slowed way down this month and it's not going to be easy to get by this month, but with the Man Up Above we will make it. We are filing in Sept. using Mar-Aug. Gross Income.

I think it's good to go at least a couple of month's between the stop pay of CCs and Bankruptcy because It is a Reality Check and the way your life & your family lives will be after you file.

[bf2bf]

Thanks for everyone's input.


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