pay off one bill before BK?

[kittylou]

I am thinking of filing BK in several months. I have a lot of unsecured credit card debt that I can't seem to make a dent in.
Late fees and now over limit fees etc. If I pay off one card now will that be a problem in several months. (seems like I read on these forums about paying extra to one card ). Thanks, Katie.

[HeatherB]

I don't think that will matter IF you do it before you file (or secure a lawyer). And depending on how you file, you don't have to claim every credit card (the ones with a zero balance, you can keep, I think...)

[keepmine]

Even if you have a card with a zero balance, it's likely that the creditor will close the card once they do an account review and see the bk on your public record. Don't pay unsecured debt that can be discharged in bk.

[lrprn]

Welcome to BK Forum, kittylou - glad you found us!

Late fees and now over limit fees etc. If I pay off one card now will that be a problem in several months. (seems like I read on these forums about paying extra to one card ). Thanks, Katie.

As you've already been advised, if you think you will keep a credit card active during your bankrupty by paying it off before filing, think again. The major credit card companies share information behind the scenes, and even if the balance on a card when you file is zero, it's very likely the cc company is going to cancel it. Every once in awhile someone lucks out and sneaks a card through, but that's unusual.

The other problem with paying a card off before filing is that it can be considered a preferential payment. This won't affect you - your trustee will just ask the cc company to give the money back to share among all your creditors.

However, paying a non-secured creditor is just a waste of your good money. Keep your cash and use it to pay your lawyer instead - that's a far better use for it!

[SinkingFast]

Another problem can be your other Creditors.

As time goes on without you making payments, Creditors start pulling your Credit Report. They are looking to see who you're paying and how much.

If you pay one Creditors and others see that on your Credit Reports,.......... It could cause your other Creditors to move, much more aggressively, much more quickly than they otherwise would. Could also lead to Creditor Objections during your BK as well.

You're best off, if you're not gonna pay some, don't pay anyone anything.