Stop paying Chase, but pay all others

[TITUS00]

Does it make sense to stop paying one unsecured creditor, but keep up payments of cards that I want to continue using. Will my other cards cut me off if I do this? Chase raised my min monthly payment to 5% and quoting from the film "Network", "I'm not going to take it anymore"

[backtoschool]

Does it make sense to stop paying one unsecured creditor, but keep up payments of cards that I want to continue using. Will my other cards cut me off if I do this? Chase raised my min monthly payment to 5% and quoting from the film "Network", "I'm not going to take it anymore"

A lot of cards have universal default clauses, that make your rates skyrocket and even that close your account, if you default on another account. It varies by bank. I would expect a minimum that your interest rates will skyrocket on your other cards.

Some may even close your accounts.

Most of your cards do "soft pulls" each month on your credit report to see your overall credit picture and they will know that you stopped paying a card.

If you have a credit union card though, they usually don't have universal default clauses and don't raise your rates if you default on other cards.

Most large banks do though.

[TITUS00]

A lot of cards have universal default clauses, that make your rates skyrocket and even that close your account, if you default on another account. It varies by bank. I would expect a minimum that your interest rates will skyrocket on your other cards.

Some may even close your accounts.

Most of your cards do "soft pulls" each month on your credit report to see your overall credit picture and they will know that you stopped paying a card.

If you have a credit union card though, they usually don't have universal default clauses and don't raise your rates if you default on other cards.

Most large banks do though.

I guess it is all or nothing. It's just that Chase is really hurting me with the 5% min monthly payment.

[backtoschool]

I guess it is all or nothing. It's just that Chase is really hurting me with the 5% min monthly payment.

The 30% interest that the cards will jack you to when you default on one card will also hurt you until you file for bankruptcy. If you know for sure that you are going to file soon, then the jacked up interest is probably the easier road, but if you have wait awhile to file, then the interest will increase your balances quickly, making your minimum payments larger quickly as well.

[jam]

Any one make it 10 monthes after stopping payments on credit cards without judgments or wage garnishment in fl

[albacore44]

Any one make it 10 monthes after stopping payments on credit cards without judgments or wage garnishment in fl

I'm at 6 right now, and their just starting to charge off. no suits yet just CA's

[justplaintired]

Any one make it 10 monthes after stopping payments on credit cards without judgments or wage garnishment in fl

We made it to 1 year 4 months before we had our first judgement. No garnishment, we filed 1 year 5 months from last date paying cc. We filed when we knew a garnishment was right around the corner. There was no good reason to put it off, pure fear was our main reason.

Also there is basically not much chance any cc would survive bk. Also soon as one cc sees you are not paying, that opens the door for the rest of them to up your rate on all your other cc. Best bet if you intend to file bk, don't pay any of them. This was hard for us because we did have some with lower balances and doable min payments, but it made no sense to file on some and not all. Wouldn't have mattered anyway, we missed our first payment way back in Jan 08 by Feb 08 our interest rate on almost all double or tripled. It's a weird feeling not paying, specially if you have done like alot of us and tried and tried to keep payments current.

[jam]

Same with us have maybe 15 cards some are low payments only 7 are in the 100 per month payment range i think i will stop paying on those soon and stop on all when it gets closer to filling date also any ones that start trying to raise payments on me they wont get paid either

[TITUS00]

How long should I keep paying a card due to a cash advance? Is 3 months sufficient?

[backtoschool]

How long should I keep paying a card due to a cash advance? Is 3 months sufficient?

It depends on the size of the advance. Three months is sufficient for the trustee, but to avoid an adversarial proceeding initiated by the creditor, you will have to pay on the card a bit longer.

[LuciluS]

How long should I keep paying a card due to a cash advance? Is 3 months sufficient?

I had a balance transfer of $3,500 & when we met with our Attorney late last Sept., he told me to make 3 monthly minimum payments and toadd about $25-$50 extra to the payment and then stop.

However, a balance transfer is probably 'looked upon' a lot different than a cash advance. It would help to know the date and how much the Cash Advance total.

Also, it's best to seek the advice of a BK Attorney, You can get some free consultations and make sure that is a priority question.

Luci

[TITUS00]

It depends on the size of the advance. Three months is sufficient for the trustee, but to avoid an adversarial proceeding initiated by the creditor, you will have to pay on the card a bit longer.

It was 2 advances totaling 14K. I am still hoping that my new business gets off the ground and will be able to pay back in full, but if that does not work out is 6 months of payments sufficient? I do not plan on filing anytime soon. I just found out my wife makes a lot more money than I thought so I would be way above the median.

[backtoschool]

It was 2 advances totaling 14K. I am still hoping that my new business gets off the ground and will be able to pay back in full, but if that does not work out is 6 months of payments sufficient? I do not plan on filing anytime soon. I just found out my wife makes a lot more money than I thought so I would be way above the median.

3 months is definitely too little time for that amount. Your risk is not the trustee, but the creditors. With 14k in advances taken only a few months before bankruptcy, the creditors might file an adversarial proceeding which is a hearing to keep those advances from being discharged. The creditors will say that you knew you were insolvent when you took the advances. This is difficult to prove though, especially if you are paying on the cards.

But it is expensive to go to an adversarial proceeding and it is NOT included in the bankruptcy fees your lawyer charges you. An adversarial proceeding can run $5000 or more extra.

Optimally a year should pass between those advances and your filing for bankruptcy. Of that year, you should have 3-4 months of payments on the card.

[jam]

Update im now at 7 monthes since i stopped paying on cards lots of calls i dont answer still no charch offs just monthly statements 4 monthes to go now will make a date to see attorney next month will use same att as last time in 2002 he only does chapter 7 25 yrs at it he is the best hope every one on furom is doing ok i read post every night a great place for info and peace of mind for people in financial stress

[DYLAN150]

BacktoSchool: Didn't the universal default clause just change when the new credit card law came into effect in Feb 2010? I was thinking that changed for the better! I could be wrong.