Bills after I file....do I pay them???

[fatjay]

As I move closer to file chapter 7 do I continue to pay CC bills? I am not filing due to CC debt but due to being sued on some other debt...Or do I just wait for my lawyer to tell me what to do?

I am not moving any assets or spending any money just to be on the safe side...

Also my kids have savings accounts in their name but I am on the accounts as well...under $300 in each of the 3 accounts...what happens to them???

[RainMoM]

I wouldn't pay on your CC any longer if you plan on adding em into your bankruptcy. As for the saving accounts, I'd take the money out and stash it away, don't keep it in the bank, just to be on the safe side.. Good luck to you

[drowning123]

DO NOT PAY ANY CREDITORS. Pay your utilities, insurance, etc. Do not stash any money. Did you have to provide bank statements for your kids' accounts? If not, do not mention them at your 341 meeting unless they're brought up by the trustee, but also do not stash the money.

[backtoschool]

Save your money for your post bk expenses and stop paying on the cards now. I agree with RainMoM that you should withdraw the money from your children's savings accounts before you file, and hold onto the money for them until you are discharged. Once you are discharged you can re-deposit the money. Since savings accounts are paying 1% interest these days, having that money out of the accounts is not going to cost much in lost interest, and since the money is your children's and not yours you are not hiding assets from the trustee if you take the money out of the account pre-bk filing.

[RainMoM]

Save your money for your post bk expenses and stop paying on the cards now. I agree with RainMoM that you should withdraw the money from your children's savings accounts before you file, and hold onto the money for them until you are discharged. Once you are discharged you can re-deposit the money. Since savings accounts are paying 1% interest these days, having that money out of the accounts is not going to cost much in lost interest, and since the money is your children's and not yours you are not hiding assets from the trustee if you take the money out of the account pre-bk filing.

Well said backtoschool

[lfllffl]

I wouldn't pay any CC bills. But be prepared that your phone is going to start ringing in short order. Retaining an attorney as soon as you can come up with the retainer fee (most will only charge $500 for retainer) will help with the phone calls.

But paying the CC now when you know you are going to file is pointless...

[tobee43]

we paid all the way up to the filing date....even though our atty said we could stop prior.

we think it helped when after the discharge our fico scores where not too bad since we didn't give the cc's companies enough time to report us late....between our last payment to them the next thing they rec'd was our filing and then there was an automatic stay and then could do nothing.

[fatjay]

Thanks for the info..sounds like I should stop paying them...just sucks that they are all in good standings....do I lose CC that have a zero balance?

[fatjay]

Wont they consider it fraud if I close out accounts that have my name attached to them and pull out the money? again dollar amount are less then 300 in each account

[IBroke]

Thanks for the info..sounds like I should stop paying them...just sucks that they are all in good standings....do I lose CC that have a zero balance?

You will probably lose them because most major banks have a "if the borrower files BK, we close the account"-policy. However, if they have a $0 balance, they won't get the "IIB"-notation which is a good thing.

[IBroke]

Wont they consider it fraud if I close out accounts that have my name attached to them and pull out the money? again dollar amount are less then 300 in each account

You can close your accounts and pull out whatever money you wish - as long as you list the money you have the day you file as your asset, of course.

[fatjay]

You can close your accounts and pull out whatever money you wish - as long as you list the money you have the day you file as your asset, of course.

I see and since I am only holding the money for the children its not mine and I dont have to list it, is that correct?

[AngelinaCat]

No, you DO have to list your childrens' money. There will be a place where you list 'items that you hold, but do not own'.

[fatjay]

Copy that, thank you...I know that most of my questions will be answered when I get knee deep with my attorney...just getting ready I guess...Thank again for all the help...

[tcreegan]

Hi fatjay,

to file chapter 7 do I continue to pay CC bills? ...just throwing $$ away

Az doesn't exempt much cash in the bank, only $150 I think, doubled if filing jointly. So the advice to empty the accts is probably a good idea.

Good luck w. your case,

Tom in Colo