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

[tobee43]

Day 1 at the atty office all went well...as of today I am no longer paying any CC bills...man thats hard to get my head around...this is so against my nature...nose to the grind stone and you work through it thats what I was always told...you signed for it, its your debt, you pay it....I wish that CC debt was my issue...but Im being sued and thats why I need to file chp 7....Man this is a hard pill to swallow...anyway...wish me luck, IM GOING IN, no stopping the train now..

we found the best way to handle was to attempt to get it off our minds as best as possible...we had NEVER In 40 years been late...but on the day we filed...NOT retained the atty we continued to pay our cc's...and once stopping it was really hard for a while and just got easier as time went on.

try and screen your calls...sometimes it helps if you don't have an exchange at all. our phone system allowed up to block calls so it was great...and i'm certain frustrating on the side of the creditor who was cut off...LOL! LOVED it!!

it is stressful..but it will be just fine!

[newbie2]

I will be taking $600 cash out of my checking the day before we file, because I have to pay the lawyer his final installment, wil this be considered a problem?

No. It's a legitimate expense.

[Fallonedward]

I will be taking $600 cash out of my checking the day before we file, because I have to pay the lawyer his final installment, wil this be considered a problem?

Be very careful about clearing out bank accounts right before you file, because that can be considered an attempt to hide assets. This of it this way: If the Trustee requests bank statements at some point, will you be able to explain (and document) where the money went? It's fine if you spend it on household and living expenses, not so fine if you spend it on a trip to Cancun -- or hide it under the mattress. You can withdraw it and report it as cash, but then, what's the point?

[fatjay]

Thank you for the kind words..I keep looking to the future and where I will be and I know this not only protects my home but will leave me, in time, in a better place over all..

[tcreegan]

Hi fatjay,

man thats hard to get my head around...this is so against my nature...nose to the grind stone and you work through it thats what I was always told

Me too, product of parents who went through the Great Depression....but my Dad knew who he was dealing with, shook hands to close a deal, the guy holding the mortgage was a neighbor. Different deal today, cc companies could care less who you are, what you are going through, everything is a formula designed to maximize profits, and the person you deal with is not a neighbor unless you live in India. Your BK is not personal, just numbers on paper, a business decision. You do exactly what has been done to you...make the decisions that maximize your long-term financial interest.

Hang in there, it gets better as you go,

Tom in Colo

[fatjay]

Day 1 at the atty office all went well...as of today I am no longer paying any CC bills...man thats hard to get my head around...this is so against my nature...nose to the grind stone and you work through it thats what I was always told...you signed for it, its your debt, you pay it....I wish that CC debt was my issue...but Im being sued and thats why I need to file chp 7....Man this is a hard pill to swallow...anyway...wish me luck, IM GOING IN, no stopping the train now..

[IBroke]

You can withdraw it and report it as cash, but then, what's the point?

I guess there are some circumstances where it may make a difference. I'm thinking of Credit Unions and their "cross-collateralization" or "frozen accounts" in general. So if the money you are planning on taking out of the account is covered by your exemptions and you are going to report these funds as such, I'd rather have the money in my pocket.

[researchnerd]

Be very careful about clearing out bank accounts right before you file, because that can be considered an attempt to hide assets. This of it this way: If the Trustee requests bank statements at some point, will you be able to explain (and document) where the money went? It's fine if you spend it on household and living expenses, not so fine if you spend it on a trip to Cancun -- or hide it under the mattress. You can withdraw it and report it as cash, but then, what's the point?

[tobee43]

That is understandable and does sound like a correct move...Fear of the unknown is an SOB

it always is for those that approach their bk in the most honest way they can. just follow the advise of your atty if your filing with a firm, or do as much research as possible if going pro se.

best of luck...we all understand it's hard but you'll make it!

[fatjay]

That is understandable and does sound like a correct move...Fear of the unknown is an SOB

[DebtHater]

Why continue to pay the CC's if you are filing?

Even though they may not be the reason you are filing BK you are still required to include them in the petition. Unless you plan on reaffirming them (a stupid move), stop paying them yesterday! Whether you continue to pay them or not, the accounts will close soon after you file.

[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

[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...

[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]

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?