When do you stop paying creditors?

[annikasaunt]

When should you stop paying your creditors? I've been trying to keep up with some of the payments. My atty will be completely paid this Saturday, so I can say I've got an atty! He is meeting with me Saturday, but I was wondering if i should still be paying anybody at this point??? It is on my list of questions for him, but you guys are a lot more informative!

[SinkingFast]

We quit paying a couple months ago when the money ran out. We're not even ready to file yet.

Some people pay their bills right up to the time they file.

It really depends on your financial situation. What you can or cannot do.

[annikasaunt]

So it wouldn't be a terrible thing to only pay some of them if that's all I can do right now?

[SinkingFast]

It's all money the Trustee will go after anyway if you do pay.

There's been the same question in every attny's packet we've gone thru.

List all payments to Creditors in the last 90 days, in the aggregate of $600 or more.

Basically, every Creditor you've paid $600 or more, total to in the last 90 days, the Trustee can go back to those Creditors and get the money. The idea is that the Trustee will redistribute the funds to all Creditors, but basically it's so the Trustee get's their fee as well.

If you need clothes, shoes, have an insurance bill that's due, maybe pay for some necessity for yourself instead.

[keepmine]

If you really intend to file, quit paying everyone you will discharge in your bk today.
As sinkingfast suggested, take care of your personal needs like, auto repairs, new tires, dental work, eye exams and glasses any medical checkups you've neglected, clothes for your kids and school supplies,etc. You get the picture.

[annikasaunt]

I completely understand Use my money on stuff that is exempt and we won't have any problems! There is a ton of stuff I need done like you mentioned!

[Minnymouth]

Remember though, you do have to maintain your utilities or your get caught with huge deposits in the future......

Maintian any utility and any account (home,car) that you plan on keeping.

[aa06a47]

My attorney told me to keep making the payments until I was 100% sure I was going to file. I think he had told several people to quit paying, then life events changed and they didn't need to file anymore and he got kinda ripped for the advice....(me reading between the lines). All of my creditors have received more than 600 in the 90 day period, so guess they will all be forking some money back over!

[SinkingFast]

One attny made a big fluff outa that 90 day $600 thing to us. "Oh wait to file until these drop off.", he said. Like it was something important for us to worry about.

Next attny fully explained it. That it was an issue for the Trustee and Creditors. Didn't involve us. Nothing for us to worry with. Other than declaring what we'd paid, of course.

I can see how the attny would get blasted for that advise. Somebody doesn't pay for a couple months, then things correct to where they can get back on track. Now they have black marks on their credit where they wouldn't have otherwise.

Things ain't gonna correct for us. It's been a downward spiral for quite a while now.

I feel like the old characters on Hee Haw.

Gloom, despair, and agony for me.
Eve of depression,
Excessive misery.
If it weren't for bad luck,
I'd have no luck at all.
Gloom, despair, and agony for me.

[annikasaunt]

Yeah, theres no getting out of this one for me either! Unless I hit the lottery or someone gives me a heck of alot of money...this is it!
Just got a quote on a new front door, $400! Mobile homes aren't as cheap as everybody thinks! Everything is special sized...now I think I can get this done...might as well use the money on things I can.

[jane taylor]

We stopped paying credit cards and medical bills when we retained our attorney. We did make one mortgage payment and one car payment. The rest of the money we are using to pay for household repairs that are way overdue and for kids' clothing.

[keepmine]

One other item that folks need to consider. Make sure you are adequately insured. Not only auto, health and renters/homeowners insurance but, be sure you have both short and longterm disability polices . You're very vunerable post bk. Don't let and illiness or accident or fire/robbery estroy your second chance.

[annikasaunt]

I only have 2 more car payments and that will be paid. And we are staying current on the mortgage because we are keeping the house. Never have been late on those payments.

I have 2 cars registered to me. One is mine and will be paid in 2 months and I also have a truck, a 1992 Chevy that is my SO's. She is also filing BK but does not have a vehicle in her name. The truck can't be worth more than $5-600 and my car is a 1999 chevy, nothing fancy. Will there be an issue with me keeping both of them?

[SinkingFast]

I only have 2 more car payments and that will be paid. And we are staying current on the mortgage because we are keeping the house. Never have been late on those payments.

I have 2 cars registered to me. One is mine and will be paid in 2 months and I also have a truck, a 1992 Chevy that is my SO's. She is also filing BK but does not have a vehicle in her name. The truck can't be worth more than $5-600 and my car is a 1999 chevy, nothing fancy. Will there be an issue with me keeping both of them?

It's gonna depend on your State's vehicle exemptions. You'll need to check on the $$ amount of that.

The Court won't care if you have 2 vehicles. The Court will care how much the vehicles are worth compared to your exemptions limit.

[so-beyond-broke]

Disability Insurance

Keepmine:

Can you only get short term/long term disability through your employer or can you purchase this the same way you do auto and life insurance policies?

sbb

One other item that folks need to consider. Make sure you are adequately insured. Not only auto, health and renters/homeowners insurance but, be sure you have both short and longterm disability polices . You're very vunerable post bk. Don't let and illiness or accident or fire/robbery estroy your second chance.