Confused on not paying unsecureds

[sammy1205]

Hi
I have a question. Let’s say I used my credit cards the last day of July, not big charges, no cash advances ever. I finally accept the next month I need to file. Do you just stop paying them? From what I have read you shouldn’t file for at least 90 days, but leading up to that 90 day mark you just don’t pay at all? Or should you pay the minimums on all cards, even if you just used one ( no preferential payments) for the 3 months? I’m in Nevada if that helps

TIA

[justbroke]

It really depends, but paying on credit cards when you know you're going to file in the next 90 days, doesn't appear to be prudent. If you are truly hurting, insolvent, and can't meet basic needs, then one should concentrate on taking care of themselves and insuring they have a roof over their head, food in the panty/refrigerator, and electricity/utilities.

There are some limited exceptions to this rule. If the person had taken advances or made "luxury" purchases, the account was relatively new, and had not made a single payment on the debt, it could give rise to a finding that the purchases were made on the eve of bankruptcy. Eve of bankruptcy purchases could be non-dischargeable and cause the debtor headaches. So we always say that "time" (distance) and the attempt to pay (payments) help to cure those issues.

Some others may say that if you can afford to pay the minimums, then by paying the minimums and not allowing any account to go 30+ days past due before filing, will help you bounce back better. That may be true, but you have to balance that with what I write in the first paragraph about meeting basic needs first. The priority should be on yourself and your family.

I can add the following; if you know you are filing and insolvent, then you should not be making any further charges.

[bcohen]

If you are using your credit cards to make routine purchases such as food, medicine, fuel for your car, etc. you do not need to worry about a creditor objection. It costs thousands of dollars to file an AP and challenge a debtor's right to discharge their debt, and a rational creditor is not going to do this unless the debtor made huge purchases of luxury goods immediately before declaring bankruptcy. Also, due to the ongoing pandemic and economic collapse, no one is going to bat an eye at an individual declaring bankruptcy unless there is obvious abuse.

My advice is to take care of your immediate needs, such as stocking up on food and refilling your medication(s), dealing with any deferred medical/dental needs, and doing any deferred repairs/maintenance to your home and vehicle. As long as you keep paying the minimums, you can even use your credit cards for this. Once you have made the decision to definitely file, then stop using your credit cards and also stop paying any unsecured debts. Even if there is a delay of several months before you actually file, you aren't likely to be sued--especially in today's economic climate.

[Tik22687]

My attorney told me to stop paying my bills...

[newlife13]

My attorney told me to stop paying my bills...

My attorney also told me to stop paying. He said that it's literally throwing money away if you're going to file anyway.

[sophieanne]

My attorney told me to stop paying cc bills and try to build an emergency fund.