So only very recently we've been contemplating BK. We have 50K in cc debt. We own a house but no equity, we want to keep the house. During the last year my husband has lost about 8K in income due to slow construction business. We've always had alot of cc debt. Bad spending habits, speending more that we make. We just always thought I would go back to work someday when the kids get a little older. Up until now we've always been able to make minimums but it's getting harder and harder. I believe we are well below the income for Ch 7. Family of 5 in Ca will have made about 40K this year. My question is about getting ready to file. Before I had even thought about this I made a large bakance transfer 6K to a lower interest rate, and I have been using the cards for gas , groceries just bought some christmas gifts. Should I keep paying minimums for a few months? The problem is if we pay min then I'm going to need the cc for groceries and gas etc... or do I stop paying even thought we've used the cards allot in the last month. I know we should wait awhile to file but I'm so concerned about not paying the minimums and having it look like fraud. Any suggestions would be great! Thanks.
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If you consult with a BK attorney the advice you will inevitably receive, if you decide to file, is to stop paying the credit cards. From your description of your situation, it appears that BK is virtually inevitable, so simply stop paying the CCs. And there is no way that what you are doing, or have done, is fraud. Just get ready for the inevitable onslaught of phone calls and correspondence that will follow upon default. Not paying your bills is not a crime - it is simply not paying your bills. The "why" does not matter.
Keeping your house in a Chapter 7 in California is beyond my knowledge.
You would do well to remember that your situation is in no way unique. Good luck!
This from someone in their 2nd bankruptcy - Chapter 7 in 1994, Chapter 13 in 2008.
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