Stoped Paying 3 Months ago

[boiler704]

I've made the decision to file 3 months ago and haven't sent a payment in since. Haven't once picked up the phone if I didn't know the number. I currently make too much to file chp 7 but in a few months will be without a job so I'm hoping to hold out as long as possible so I can qualify for chapter 7 instead of 13.

On the voice mail BofA said that I have till friday to send in a payment. What legal action can the creditors take on me if all $75k of my debt is in unsecured credit cards? Or will they just sell my debt to a collections company?

Also I currently work for BofA and have my money in a checking account with them? Anyway they can take money out of my checking to pay my debt without my authorization? I'm not worried about losing my job because my boss is trying to keep me from leaving, but the only way to qualify for chapter 7 is to cut my income. I also reside in NC which does not allow for wage garnishment

[bige1030]

Bank of America could take the money out of your checking to pay off your debt if your deposit account agreement has a "setoff" clause. It's probably best to have that money sent to another bank and to withdraw all but a few dollars from your checking account to prevent this from happening. That's what could happen in theory...I'm not sure how often it happens in practice.

[CATCHMEIFYOUCAN]

I've made the decision to file 3 months ago and haven't sent a payment in since. Haven't once picked up the phone if I didn't know the number. I currently make too much to file chp 7 but in a few months will be without a job so I'm hoping to hold out as long as possible so I can qualify for chapter 7 instead of 13.

When I filed I was working 2 full time jobs, I had to file for Ch13 but within 3 months I quit one job and was able to convert to Ch7. I didn't have to prove my change in income etc either. I would at least retain the lawyer and get your creditors off your back and have them calling the lawyer (if you are not filing pro se). They say it takes awhile for creditors to start an actual lawsuit, right now you'll just get threatening letters and phone calls. But never say never.

On the voice mail BofA said that I have till friday to send in a payment. What legal action can the creditors take on me if all $75k of my debt is in unsecured credit cards? Or will they just sell my debt to a collections company?

I believe they will charge it off and it will eventually go into collections and possibly a third party collector, plenty will chime in here with their words of advice.

Also I currently work for BofA and have my money in a checking account with them? Anyway they can take money out of my checking to pay my debt without my authorization? I'm not worried about losing my job because my boss is trying to keep me from leaving, but the only way to qualify for chapter 7 is to cut my income. I also reside in NC which does not allow for wage garnishment

Definitely take your money out of your account and open an new account elsewhere (before you go into BK because it might be hard to open a new account at another bank when you have already filed (close the account if they will let you), they might have what they call "cross collateralization." For instance, I had a checking and a savings account with Navy Federal, I knew in advance they could take whatever monies I kept in the account. They wouldn't let me close the accounts because I had my unsecured loans and unsecured credit cards attached to them. So I simply kept a the minimum $5 balance and stopped using them. On one account I had like $10 in it and they automatically took $5 and applied it to one of their credit cards.

Best Wishes, CMIYC

[jal1129]

The advice I have always received from CCCS to several debt management companies to lawyers has always been DO NOT have your checking accout at a bank you owe money to. So if I were you I would move my checking account like yesterday.

[boiler704]

thanks for the advice. Just opened up a free WAMU account despite the fact that they have no branches near or around me. However I rarely use cash and in the times that I will need to I can always go to wal-mart to take out cash without a fee. probably will take a month to send my paycheck over since it's auto deposited.