Close to BK filing. Need advice, please.

[No Gravy]

Bk,

The reason you want to get a steady job and get yourself on a decent budget is because if you don't, you will inevitably incur more debt and because you've already filed, you will be stuck with it!

So the recommendation of this forum is to file after you have stabilized; you want to be on the way up a little bit at least before you file. Just think about it: if you don't have good med insurance and you get sick without a job, you will owe all that debt and have to pay it back (if you have already filed for bk).

Excellent advice!

[bkanonymous08]

Thanks, No Gravy.

I am just wondering what the collectors may do if I don't talk to them. My potential lawyers told me that I didn't have to talk to anyone. I live an a gated community. So, without court papers, the collectors will be trespassing the property if they try to get in. My lawyers told me not to worry about the possibility of the collector's attempt to go through the apartment manager. They told me that by laws, the collectors cannot discuss anything related to my debts with the manager. Furthermore, since I have been living in the complex for 10 years with excellent records (no late rent payment, no complaints, etc.), the manager will not do anything if I continue paying my rent on time (this will require me to find a job).

[bkanonymous08]

OK, Aug 25, 08 was my first ever late/missed payment after some 20 years. It won't be the last one since I have several due dates coming up. And I am going to miss all of them.

I feel kind of worried of what may happen next. I expect the banks to send me nasty letters. I realize that I will have to wait at least 70 days from the last day I took a cash advance. But I am worried of what else may happen.

Would someone who already went through this process give me an idea of what to expect, from now until the day I actually file chapter 7?

Thank you.

[bkrelief22]

One more thing...if you have your checking account in any of the banks where you have credit cards, move that money to a bank where you DON'T have a credit card. Do it before you stop paying and/or file. Otherwise it is possible they could tap into your account to pay the bill. I know Bank of America for one has done this.

Good luck...just keep questioning and posting. This is a great forum!

Good luck!

[liz417]

OK, Aug 25, 08 was my first ever late/missed payment after some 20 years. It won't be the last one since I have several due dates coming up. And I am going to miss all of them.

I feel kind of worried of what may happen next. I expect the banks to send me nasty letters. I realize that I will have to wait at least 70 days from the last day I took a cash advance. But I am worried of what else may happen.

Would someone who already went through this process give me an idea of what to expect, from now until the day I actually file chapter 7?

Thank you.

Hi there,
Before we decided on BK, I too had a perfect payment history. It doesn't matter anymore...I know what you are going through, it felt weird to stop making payments and soon the calls came....did you retain an attorney yet? If so, direct all calls to the attorneys office. If you haven't retain an attorney yet, tell the cc that "you are working on the problem" DON'T make any promises (calls are recorded) and I wouldn't tell them that you are going to file BK just yet...
Good Luck and Hang in there~

[Phillymanhere]

Bk,

You can chill out about the bills and nasty letters. I too had never paid a bill late, etc., but I stopped paying in April of this year (I skipped the April payments) after I decided that I definitely was going to file for bk.

Here's the deal: you will get calls. I have a cell phone and the credit card companies call on it, sometimes all day long. I recognize the numbers and I ignore them. It's funny: they must outsource the calls to centers around the country or to individuals, because I notice that the numbers change. Also, they sometimes call and block their numbers. I get "unavailable."

Now, I'm single, so there's no family embarrassment, etc. But it hasn't been hard at all. I occasionally pick up and talk to the callers. I say very calmly, "I can't make any payments. I don't know when I'll be able to make a payment. I'm probably going to file for bankruptcy." The reason I pick up occasionally is to allow them to know where I am, so they don't go calling relatives, etc. (I've heard some stories of companies calling relatives,etc. Note: when they do call family members, they don't say, "Phillyman is behind on his bills." They just ask for you. But this has not happened to me--because I talk to them occasionally.)

The callers are invariably polite and I am polite to them. Occasionally I pick up and say "nothing has changed" and I politely hang up. But the callers are generally quite quite professional. They've told me to contact them with my attorney's number when I hire him. I haven't hired my attorney yet.

The thing is to NOT get into a conversation with them. In fact, I probably talk too much to them. But it's funny: once I seriously decided on bk, I reached a peace and confidence about the decision and so I don't have "guilt" and fear in my voice when I talk to the callers. I think they sense that and they relax. I get letters, but they aren't nasty. They are just "reminders" that I am behind. They resemble normal bill statements.

Note: in most states, they are not allowed to call your job AFTER you tell them to stop doing so. And initially I did get some calls at my job. I told them in a polite, firm voice to not call me at work and if they did so, I would report them to the state attorney general's office. I got no more calls. (I owe three different card companies, so I had to do this with all three companies.)

I took out a large cash advance ($8,000 in October 2007) and I'll file after a year or so has passed. But actually the delay has mainly been that I have had to save for the money to pay my attorney.

I can understand your fear, but frankly, there isn't a lot to worry about in my estimation. The key thing is to connect with your own inner truth that you are doing the right thing and that you have nothing to be ashamed of. And then proceed accordingly. Remember: for the callers, this is a job. There is no personal animus, etc.

So you can chill. You can read on this board about what to do if legal stuff begins. Generally they don't begin that until 6 months to a year or after you stop paying (and mostly they don't do this). But this board can tell you what to do if they threaten legal action. It's actually quite easy to protect yourself. So you can chill on that score as well. (Again, there's a good chance, you will face no legal action. But if you do, come here and the folks will tell you exactly what to do, and you'll be good again.)

Good luck.

[bkanonymous08]

Thank you for sharing your experience with me.

I have talked to one lawyer already. He told me exactly the same thing: retain a lawyer of my choice, direct all calls to that lawyer.

I have not signed a retainer since I am still in the process of talking to a few more lawyers. The first lawyer seems fine with me, but I still want to visit a few more.

I expressed to the first lawyer my concern of being put in jail because I miss the payments. He told me if I did not commit any frauds, I did not need to worry because the laws did not work that way in the US. I asked him about the cash advances I took. He told me that those cash advances did not turn me into a fraud and that I would have to wait 70 days before I could file.

I did close out a checking account at a bank with whom I have a credit card. A very small account, though.

I still have another checking account with another bank. I only have a debit card with this bank. Absolutely no debt with them. The account balance is also very small (lesss than $100). Will this bank still let me have my account and my debit card after I file chapter 7? Can the collectors contact this bank in order to retaliate me?

Thanks again for your kindness.

[WoodSprite]

You can chill out about the bills and nasty letters. I too had never paid a bill late, etc....

I can understand your fear, but frankly, there isn't a lot to worry about in my estimation. The key thing is to connect with your own inner truth that you are doing the right thing and that you have nothing to be ashamed of. And then proceed accordingly. Remember: for the callers, this is a job. There is no personal animus, etc...

So you can chill. You can read on this board about what to do if legal stuff begins. Generally they don't begin that until 6 months to a year or after you stop paying (and mostly they don't do this). But this board can tell you what to do if they threaten legal action. It's actually quite easy to protect yourself. So you can chill on that score as well. (Again, there's a good chance, you will face no legal action. But if you do, come here and the folks will tell you exactly what to do, and you'll be good again.)

I can't add a single thing to Phillyman's excellent advice; just wanted to chime in with yet another "me too". 25 years of a perfect credit history; never paid a bill late in my life. Never in a million years dreamed I'd be in this situation. You're not alone, and you have found a wonderful source of information and support. Keep reading, and keep asking questions.

[WoodSprite]

I expressed to the first lawyer my concern of being put in jail because I miss the payments. He told me if I did not commit any frauds, I did not need to worry because the laws did not work that way in the US.

That's right...there are no debtor's prisons here. Bankruptcy protection is written into the U.S. Constitution. It's certainly not something to undertake lightly, but as long as you are being honest, you're not going to go to jail.

I did close out a checking account at a bank with whom I have a credit card. A very small account, though.

Good.

I still have another checking account with another bank. I only have a debit card with this bank. Absolutely no debt with them. The account balance is also very small (lesss than $100). Will this bank still let me have my account and my debit card after I file chapter 7?

I did this, too, since my direct deposits were going to this account. I kept the account balance low, and used it only for allowable expenses: food, housing, utilities, etc. This account is still open, and since they're not a creditor, they were not notified that I filed, so it's as if nothing happened.

Can the collectors contact this bank in order to retaliate me?

It's technically possible that they could freeze the account, but it doesn't happen often. This is a good reason to keep the balance low until you file. It sounds as if you're still pretty early on in the process, but once you file, there will be a "stay" in place, which means to the collectors are no longer allowed to call you, freeze your accounts, or put a lien on your property.

[No Gravy]

Thanks, No Gravy.

I am just wondering what the collectors may do if I don't talk to them. My potential lawyers told me that I didn't have to talk to anyone. I live an a gated community. So, without court papers, the collectors will be trespassing the property if they try to get in. My lawyers told me not to worry about the possibility of the collector's attempt to go through the apartment manager. They told me that by laws, the collectors cannot discuss anything related to my debts with the manager. Furthermore, since I have been living in the complex for 10 years with excellent records (no late rent payment, no complaints, etc.), the manager will not do anything if I continue paying my rent on time (this will require me to find a job).

Sorry, I got a little behind in my reading this forum and must have missed this, that was semi-directed to me. The other posters gave *excellent* advise. More than anything, as much as you can, RELAX.

Whatever brought you to this place in your life, there are countless others who are in the same or similar places, especially right now with our economy in the worst shape it's been since the depression. You're not alone.

I've only heard of collectors (etc) coming to people's houses in extreme cases, and typically only to repo a vehicle. If that applies to you and you have a garage, I'd keep the car in the garage until this is all sorted out. If it's unsecured credit card debt you're dealing with, relax. They aren't coming to your house to collect your Visa payment

I *do* understand that first wave of shock that hits when you miss the first payments, and the feeling that the world is gonna stop spinning because of it. It won't. Know that there are people on this board who stopped paying their credit cards 3, 6, 9 even 12 months ago (for various reasons).

You're gonna get through this. We all are. Read as much as you can in these forums, about your rights, etc. Knowing where you stand, knowing what they can do and what they can't, in empowering. Knowledge is power.

[bkanonymous08]

Thank you to all of you for your supports and advices. I am glad I found this forum.

Anyway, I just found out one of my cards has already been suspended even though this was the fisrt payment that I ever missed since I started banking with them in 1984. And, the late period is less than 1 weel old. The bank is a very well known one. In fact, it's this bank that came to the Feds and cried & begged the Feds to rescue them from their mortgage mess by lowering the Fed rate. Hm...the bank had the face to ask for a reduced interest rate for their sub-prime stupidity; but they didn't have any common sense to lower mine to not force me into bk despite my repeated requests to them.

Anyway, 24 years down the drain. Brutal, isn't it?

Have a good Labor Day.

[No Gravy]

The bank is a very well known one. In fact, it's this bank that came to the Feds and cried & begged the Feds to rescue them from their mortgage mess by lowering the Fed rate. Hm...the bank had the face to ask for a reduced interest rate for their sub-prime stupidity; but they didn't have any common sense to lower mine to not force me into bk despite my repeated requests to them.

Amazing, isn't it? My mortgage holder was on the verge of being taken over when they got a bail out/merger deal. on one had you'd think they'd be a little more understanding, but at the same time...it's all a cycle. Just like when my clients don't pay me in a timely manner, I can't pay my creditors.

[bkanonymous08]

Bankruptcy and Retirement Fund

Hello everyone:

I hope everyone is doing fine in this crazy time.

I would like to ask you this question: how does filing chapter 7 affect my retirement funds?

I am many years away from retirement. I already depleted my 401K to pay the credit card debts and still owe them money. I have a small pension fund benefits and my social security benefits, both of which I will not receive many years from today.

How will filing chapter 7 affect these retirement funds? Will the creditorsbe able to take away my pension or my social security or both if these will be the only sources of my income after I retire?

Thank you for your help.

[AngelinaCatHub]

Hello everyone:

I hope everyone is doing fine in this crazy time.

I would like to ask you this question: how does filing chapter 7 affect my retirement funds?

I am many years away from retirement. I already depleted my 401K to pay the credit card debts and still owe them money. I have a small pension fund benefits and my social security benefits, both of which I will not receive many years from today.

How will filing chapter 7 affect these retirement funds? Will the creditorsbe able to take away my pension or my social security or both if these will be the only sources of my income after I retire?

Thank you for your help.

[Never_Again]

You are certainly not the first one to ever raid a 401K or IRA to pay credit cards, so don't beat yourself up over that!

Hub is right... retirement is exempt.

You know, definitely a good reason to put money into a retirement account... it is a form of asset protection. Not that I ever plan to do this again, but I never planned to do it the first time, so you never know!