How long did you wait to file BK and without paying creditors and why?

[liz417]

Hi, if you stopped paying cards in May 08, when did calls start and how often did you get them? We have 75K in CC debt. Talking to lawyers next week. I'm nervous about stopping payments, but we can't make payments without incurring more debt (hence the whole problem). Would like to have couple months with no charges before we file.

In May '08 I retained an attonrey that told me to stop paying my creditors that day. I expected to file a ch 13 (because I'm over median) and started make payments this attorney (4k), well that took almost a year to pay, but he took all my creditor calls I found this forum, read up on BKs and found out I could qualify for a ch 7! He wouldn't budge from his original decision of a ch 13 for me and quit the case. I would suggest you consult with at least 3-4 attorneys before you decide on one (I consulted with 6).

Good luck!

[liz417]

Thanks for replying. May I ask what CC companies? We have the majority of our debt with Citibank(27k, 24k) and Chase(9k, 9k) and then smaller credit cards with balances and medical debt. I am still contemplating calling them to see if they will do hardship with us so we can pay smaller payments over time. I am just scared I guess it can't hurt to try except that we might be throwing more money away.

Thanks for your input. I hope your BK proceeding goes smoothly!

Nah, I called to work out something with my biggest debt (chase) and they wouldn't budge. Our creditors are: Chase (27k), Amex (12k), BofA (12k & 8k), Discover (8k), 1st Bank of Omaha (5k).
There's no need to be scared, as others have put it, "think of it as a business decison", we've all been there, so just stay here and read everything you can about BK, ask questions that'll ease you mind a little.
It wouldn't hurt to make a few appts for a free consult, at least you'll know where you stand.

Good Luck!

[betpie]

I stopped paying my two credit cards (each about 4K) at the end of 2005 and haven't filed yet. They have both been to at least two collection agencies and now I'm getting letters from the CA's lawyers. Definitely part of the motivation to file

I just got a notice of social security overpayment to the tune of $7k a couple of months ago and have not even made a payment. It was what made up my mind to file.

[Lindsay]

We stopped paying in July 2007. Its been almost 2 years. So far, Chase has sued us three times, getting two judgments so far. US Bank has also sued, but hasn't obtained a judgment yet. WAMU has just sent one of the accounts to a lawyer who is also planning to sue. Citibank, Discover and American Express haven't done anything yet except have collectors call; these debts have since been sold to collection agents.

Relax and don't answer the phone. The process is very slow. It took almost a year for Chase to get a judgment from the first lawsuits.

[lala]

Thanks everyone!

This forum is so helpful. I'm just concerned about them calling family, friends, neighbors, etc. If we retain a lawyer can we refer calls the him/her? Will this help stop the calls? It will be weird to stop paying the CCs, but nice not to worry so much about making ends meet with all the CC payments.

[liz417]

This forum is so helpful. I'm just concerned about them calling family, friends, neighbors, etc. If we retain a lawyer can we refer calls the him/her? Will this help stop the calls? It will be weird to stop paying the CCs, but nice not to worry so much about making ends meet with all the CC payments.

Once you retain an attorney, you can usually send the calls to him/her (ask first!). Until then, pick up the phone every once in a while to let them know you are still alive...they only call friends/neighbors/family if they can't reach you.

Good Luck!

[Stilltheone]

We filed right away and weren't even late on anything when we filed. My husband got a paycut, so we knew the end was near. Why wait?

Since we were proactive in our filing, it has been much easier to repair our credit since our BK. When we went for an auto loan, the lender could see that we have never been late...even BEFORE the BK.

[floridian]

In May '08 I retained an attonrey that told me to stop paying my creditors that day. I expected to file a ch 13 (because I'm over median) and started make payments this attorney (4k), well that took almost a year to pay, but he took all my creditor calls I found this forum, read up on BKs and found out I could qualify for a ch 7! He wouldn't budge from his original decision of a ch 13 for me and quit the case. I would suggest you consult with at least 3-4 attorneys before you decide on one (I consulted with 6).

Good luck!

did you lose the money you paid the first lawyer? what was different about the next lawyers tactics that got you a 7?

[liz417]

did you lose the money you paid the first lawyer? what was different about the next lawyers tactics that got you a 7?

I was pretty lucky, he returned 4k plus the filing fee. I was expecting him to take at least $1-2k for his time, he took all my creditor calls for 1 year, got me my pre BK certificate and a free credit report!
My new attorney isn't using any "tactics", I think that the 1st attorney was a criminal attorney, then with all the BK's happening, jump on the ban\dwagon and is now a BK attorney. At the time of our 1st consult, I didn't know anything, I had just accepted his "word" on what I qualified for and he said a ch 13 would "guarantee" no creditor objections. I found this forum soon after and read up on EVERYTHING I could while I slowly paid off his fees (he wanted it up front before he started the case). I soon realized that there *might* be a possibility that I could qualify for a ch 7, I kept doing the means test and it would show me a negative number...when I brought this up to him, he was angry and told me that I was OVER the median...Period! He also said that I was "free to find another attorney that would do unethical things to qualify me for a ch 7, and that he wasn't going to do it"...
I think I was pretty lucky to have found this forum, not have the $$ in full for the 1st attorney, otherwise I would be in this thing for 60 months.
I really hope our ch 7 goes through and we don't get "bumped" into a ch 13, but at least I know I tried...that's all that counts

[frontier2005]

i stop mine may 2008, ratained a lawyer aug. 2008 still owe him about $700. most of my CC are handle by CA and Discover card is the only one filed a lawsuit.

[bebpmp]

Probably you do not have much to worry about regarding getting sued. We have >$100 in unsecured (two failed businesses in two years). We stopped paying on the cards in Nov. 08 on advice from our attorney. Phone started ringing (thank God for caller ID). We answered only once, and the girl was very nasty, so we have never answered a creditor call again in 7 months. Our attorney says, "It's a phone call. You are not required to answer it and speak to them. Just ignore the phone calls. We send him the letters from CC companies, and he advises them we are represented and to discontinue contacting us. It really has not been much hassle since we do not awnser their calls. No service yet on lawsuit. we haven't yet filed after 7 months, waiting for the IRS to send a $37K refund. Seems the post office or IRS lost the original refund paperwork in April, and we just learned of the missing 1045 form. Now will take a minimum of 8 weeks to get refund. So we will try to hold on for another two or three months before filing.
Anyway, relax, ignore the phone calls...they are persistent, but you get used to ignoring the phone...but be sure you have caller ID. Good luck!