Timetable to file chapter 7 - creditors need some advice !

[lillywa1]

My husband and I will be filing for a chapter 7 Come July 2011. We have been given a few different answers on when to stop paying our CC's & Mortgage if were going to be filing BK ..

1) If filing for BK in July/11 when do we stop making CC payments... meaning do we stop now or wait 90 days BEFORE filing and then stop ?

2) We are not going to waste time doing a loan mod and then file BK to include the house. Some people tell me to stop making my payments now and bank roll the money... but is that a good idea to do NOW ? Obviosuly this is Dec.

Just looking for some feedback- what is the best idea here ? Thanks !

[keepinitreal]

If you're 100% sure you will file bankruptcy and you're 100% sure you will not keep your house, I think you should stop paying them now.

If you have already talked to attorneys, then follow their advice.

[drowning123]

I'm with keepin on this one. I didn't "plan" my bk, but it so happened that I had stopped paying on everything at least a year and a half befor I filed.

[keepmine]

Agree with the others.
Stop paying all debt you wish to discharge. Use those payments for living expenses, legal fees, any dental or medical procedures you've delayed, auto repairs, etc.

[tcreegan]

Hi lily,

I would stop paying the minute I decided to file BK. For the cc people, search online for the Fair Debt Collection Practices Act and find ways to keep them off your backs until you file. For the house, find your states foreclosure laws and see what the timeline is; also could find out from your lender how many payments you can be behind before they send out the notice of default.

No sense throwing money at debts that are going to disappear in July. Time to start bankrolling your post-BK life!

Tom in Colo

[drowning123]

So what you'll get harrassing phone calls, but isn't it well worth it to save some money?