Need some advice

[ineedhelp201]

How should I handle the myriad of calls I will be receiving? Everything with the exception of the 2 payday loans is current. Those have been sold to collection agencies. I'll send C&D letters to them, but what can I expect in the short term after I send those letters?

How should I handle calls from the credit unions / big banks that will come soon asking for payment?

[shoopy]

One member suggested staying current on debts until you could change your contact number with all of your creditors. I'm not sure how well that will work, as I doubt that the creditors throw away past contact numbers, just for occasions such as this.

I still have a land line phone, which offers call forwarding for $1.50 a month. I forward all calls to Google Voice, where I have created a list of numbers, that obviously belong to creditors, which get dumped straight to voice mail, all other calls are forwarded to my Nettalk phone. The Nettalk phone displays caller id info, so if the call still looks suspicious, I look it up at one of the on line caller id sites, or just enter it into google, and a lot of times the caller will be identified as being a creditor, which is then added to the Google straight to voice mail list. It really doesn't take too long to create a pretty decent list of filtered numbers.

If your cell phone offers free call forwarding, you could probably accomplish pretty much the same thing, by adding a Tracphone or some other cheapo monthly phone. Google Voice is your friend.

[lillymarlene]

How should I handle the myriad of calls I will be receiving? Everything with the exception of the 2 payday loans is current. Those have been sold to collection agencies. I'll send C&D letters to them, but what can I expect in the short term after I send those letters?

How should I handle calls from the credit unions / big banks that will come soon asking for payment?

I didn't know about google voice when I stopped paying some of my creditors, so I just ignored numbers I didn't recognize. I had calls from 8 A.M. until 10 P.M. at night. My creditors suceeded in breaking my answering machine Ineedhelp, you probably won't be sued, since it does take awhile, but I ended up attending a "pre-trial" for one of my credit cards, with a small balance. I just "played dumb" claiming I hadn't received anything beside the summons, and that I needed time to obtain counsel. Then the case was continued for a few months, which enabled me to settle on an attorney and file bk.

CD letters to me were also another another way to buy a little time. When one of my charge cards turned me over to a collection agency, I would send off a cease and desist letter stating that I would only deal with the original creditor.

[ineedhelp201]

Under any circumstance, should I tell the creditors that I'm thinking of filing for BK?

[btbeme]

Under any circumstance, should I tell the creditors that I'm thinking of filing for BK?

My sense is that if they hear that, they either don't believe you, or they step up their timeline to filing suit.

I'd leave the B word out of the conversation until you have filed.

[ValleYum]

Under any circumstance, should I tell the creditors that I'm thinking of filing for BK?

I agree with btbeme.

When we were called by the collectors, I simply said that "We have suffered a financial setback and we are trying the best we can"; thanked them, and hung up. If you answer a subsequent call, just vary on the above and mumble the word 'economy'. Don't be drawn into a chat or feel pressured to give a date to them as to when you can make a payment, etc.

Hang in there, this too shall pass.

[LadyInTheRed]

If I were going to try to keep some small amount of savings, I suppose I would slowly draw out the savings in smaller amounts and buy gift cards that don't expire soon, at my favorite places to shop for necessities, such as Target, Walmart, etc. I know this may be a no-no, so don't consider this as my advice to you, but just what someone might do, hypothetically.

If you have gift cards at the time of filing, they are assets that must be reported on your BK petition. So, a gift card does not work to protect assets in BK. For somebody with judgements, buying gift cards instead of leaving cash in bank accounts can be a good way to keep your cash out the hands of judgement creditors.

[ineedhelp201]

Thanks. I'm always so worried when I have to talk to creditors. Should I really just tell them that I'm not sure when I can make my next payment due to financial hardships? I guess that's easy enough.

One thing I really don't want is for them to call my relatives. A few weeks ago, one creditor called my parents house looking for me. Very embarrassing.

[lorelei]

INeed - I'm saying what I'm saying with a good measure of been there, done that, so please take heart. You are far from the first to make the mistakes you've made, and you won't be the last. Simply coming clean to my family about my problem was a huge act of courage, and I'm sure it was with you, too. You've made some good choices, and that gives you a head start.

Now, about stopping paying bills. This one tripped me up, too. Once I realized I was headed for bankruptcy, I was convinced I had to file right now this very minute or else! Or else what? I'm not sure. I knew there might be a judgement against me, and I didnt' want that of course. More than anything, I was just scared. But I didn't need to be. I first talked to an attorney in June 2010 and stopped paying on my credit cards then, and by the time I actually filed in April 2012, still no credit card company had gotten around to filing a lawsuit. ***That's not true of every creditor*** If you stop paying on a car, I bet they wouldn't hesitate as long to reposses. And some creditors will file suit much, MUCH more quickly for very small amounts. It all depends. But one thing I learned through this is that I felt my bankruptcy much, MUCH more urgently than anyone else around me - including my creditors, my attorney and my trustee.

So take a breath and assess.

It might be in your favor to wait a while and let your debt "age." The longer it's been since you've used a credit card, the less likely (I believe) it is for an issuer to claim you tried to defraud them. Think strategically in other ways, too. Do you have a surgery on the horizon and anticipate medical debt? Put off filing and include what you can't pay. I know it sounds cold and calculating, but bankruptcy is a business decision. Do you anticipate a change in income? If you know your income is about to decrease, maybe waiting will let you qualify for a Ch. 7 later when you can only qualify as a Ch. 13 now. If you know your income is going to increase, maybe you need to file now, before you are pushed into a Ch. 7.

Above all, talk to an attorney or two or three. And be honest. They're not there to judge and they've heard it all before. Come up with a strategy. Read and learn. And keep a level head, as best as you can.

Good luck!

[lorelei]

Thanks. I'm always so worried when I have to talk to creditors. Should I really just tell them that I'm not sure when I can make my next payment due to financial hardships? I guess that's easy enough.

One thing I really don't want is for them to call my relatives. A few weeks ago, one creditor called my parents house looking for me. Very embarrassing.

One of the great things about retaining a lawyer is that you can tell them that you have an attorney and plan on filing bankruptcy, and then you give them your attorney's name and phone number. That should stop most of the calls.

[LadyInTheRed]

Thanks. I'm always so worried when I have to talk to creditors. Should I really just tell them that I'm not sure when I can make my next payment due to financial hardships? I guess that's easy enough.

One thing I really don't want is for them to call my relatives. A few weeks ago, one creditor called my parents house looking for me. Very embarrassing.

Answering the calls every now and then should keep the creditors from calling family members. Just tell them you are having financial difficulties and can't pay them right now. You are considering your options and will know more in 30 to 60 days. If they persist, be a broken record. I never had to repeat it more than twice, but if they didn't give up after the 3rd time I would have said something like "I hate to hang up on people, but you've left me no choice and I have no other information to give you right now. Good bye." That's similar to what I tell telemarketers who won't give up.

[ValleYum]

One thing I really don't want is for them to call my relatives. A few weeks ago, one creditor called my parents house looking for me. Very embarrassing.

The most important thing to do to avoid this is to answer the phone. The debt collectors have a job to do - if they can check the box that they spoke to you then your file gets put to the side for a day or 2 or 3 - because they spoke with a person and they know the number on file is correct.

No one ever called anyone looking for us and they all had valid numbers for my siblings and parents BUT I answered the phone about every other call (at the most every 3rd call). It wasn't easy and it wasn't fun. I just kept telling them I was trying to figure things out and I would tell them if anything changed. Most were nice. A few weren't. I imagine is sucks to have their job though.

[ksgirl38]

One member suggested staying current on debts until you could change your contact number with all of your creditors. I'm not sure how well that will work, as I doubt that the creditors throw away past contact numbers, just for occasions such as this.

I still have a land line phone, which offers call forwarding for $1.50 a month. I forward all calls to Google Voice, where I have created a list of numbers, that obviously belong to creditors, which get dumped straight to voice mail, all other calls are forwarded to my Nettalk phone. The Nettalk phone displays caller id info, so if the call still looks suspicious, I look it up at one of the on line caller id sites, or just enter it into google, and a lot of times the caller will be identified as being a creditor, which is then added to the Google straight to voice mail list. It really doesn't take too long to create a pretty decent list of filtered numbers.

If your cell phone offers free call forwarding, you could probably accomplish pretty much the same thing, by adding a Tracphone or some other cheapo monthly phone. Google Voice is your friend.

Correct, they don't throw out old contact numbers. In my case the only phone I have is a cell phone and Verizon allows you to block up to 5 numbers for free so once the calls started I was able to add those numbers to the call block. Unfortunately they somehow got their hands on my mom's number and called her which is strange considering I've never given her number to anyone and it's a fairly new number. This is why when opening a new card I would never recommend giving out your phone number. Make one up and if they really want to contact you they'll send a letter. I had one company that when I first moved out on my own and was buying furniture they would put a hold on my account every time I made a purchase. Although I appreciated this concern in the beginning, it got frustrating when they did it every time I bought groceries or shopped at Target.

[ksgirl38]

My sense is that if they hear that, they either don't believe you, or they step up their timeline to filing suit.

I'd leave the B word out of the conversation until you have filed.

I threatened this in the beginning with my cc companies before I even considered BK an option and I never found that it mattered. I was trying to get a debt settlement and it didn't seem to matter. Although I was only about 90 days past due when I filed so I guess it depends on how long it's been since you've made a payment.

[ksgirl38]

If you have gift cards at the time of filing, they are assets that must be reported on your BK petition. So, a gift card does not work to protect assets in BK. For somebody with judgements, buying gift cards instead of leaving cash in bank accounts can be a good way to keep your cash out the hands of judgement creditors.

I didn't have to report any, but I guess it depends on the value and how you go about it.