Should I pay creditor while waiting to file

[brian]

Need some advice on what to do.
Facts;
1)Will be filing for BK Chapter 7 in Washington state in about 4 months.
2) Paying all Credit Card bills and Personal loans on time except one
3) Haven't payed my Citibank Card for 1 month. Balance $13,000. Over the credit limit by $5,000.
Question: Should I call Citi Card and tell them I can make small payments (?? $100? $200? more?) a month... tell them I'll send in my Tax refund in April ($5,000)... in the hope they wont take me to court before I file - about 4 months from today. Citi Card has not contacted me as of today about not paying in the last month or about being over the Credit Limit by $5000.00

[brian]

What's your best guess on what Citi Card will do? How fast will/can they go to court and get a judgement against me?? Thanks for any advice~

[Dawn1970]

I'm guess-timating that you'll be all right if you intend to file in 4 months. I can't say for sure, of course. But they probably won't manage to do anything in 4 months' time. I concur with the other responder- quit paying on everything but utilities and rent if you are renting, or if you have a house that you want to reaffirm on, keep its' payments current. Let everything else go because it's a waste of your money if you're going to take Chapter 7 on it all.

[NOMO$$]

I have a citicard which is about 8 months unpaid with a balance which is just shy of 20,000 and they haven't even sent it to collection yet. I wouldn't worry about them at all. My attorney said they haven't shown to any of his cases in 5 years that he has been doing Chapter 7's.

No worries!

[clig_fred]

Could defaulted credit debt stop the late fees and interest

I have a citicard which is about 8 months unpaid with a balance which is just shy of 20,000 and they haven't even sent it to collection yet. I wouldn't worry about them at all. My attorney said they haven't shown to any of his cases in 5 years that he has been doing Chapter 7's.

What is your account status?

I have the same situation. But they keep charging me interest and late fees.

How many months should I keep in in defau;t so that they would freeze my account to avoud these fees?

Imagine the late fees and interest on the $20,000 late debt. It's so huge adebt that makes me feel so sorry to ask for a credit card from Citi. How does wasted money spending stop? Any ideas.

[drowningindebt]

I stopped opening my bills when I stopped paying them. Sure, it's not the most responsible thing to do, but I was too scared to look. Clig_Fred, are you going to file? I just did about a month ago and the absolute RELIEF you feel when the bills stop coming and the calls stop coming is unbelievable. Good luck to you all!

[HHM]

Why are you waiting 4 months?

If you have absolutely made up your mind, why are you paying any of your unsecured creditors, your just throwing good money after bad. I suppose there is something to be said for maintianing a positive payment history for credit reporting purposes, but still, why waste money.

[brian]

I'm waiting for 3 or 4 months due to the following;
1) Tax refund (about $5,000) - Don't want to give it to creditors
2) Bonus from work (about 3,000) - again... don't want to give it to creditors
3) Took several LARGE cash advances (about $25,000) in the last month and lost it gambling (i know... not very responsible... too late now)
4) Took out several LARGE Personal Loans in the last month (about $20,000) and lost it too gambling (i know ... not responsible)


Not that it's anyone business... but I am now going to couseling and GA trying to stop gambling and get my live back... and be able to take care of my 2 kids.

My question;
How long do I wait before filing Chapter 7 BK? Been told if it was a Chapter 13 it wouldn't matter about the LARGE cash advances because i would be paying part of it back over the 3 - 5 year payment periond.... BUT with a Chapter 7 what should I do? I plan on being honest about the gambling with my lawyer AND judge if asked. I also took out ALL the equity in my house (equity loan) - about $60,000 in the last 2 months... and lost it too gambling. What do I do? What would happen if I file TODAY? Would the judge not allow it? Would I be criminally liable for the unsecured loans (saying I never planned on paying them back)?

Thanks for any and all advice.

Brian

[NOMO$$]

I have heard only a few cases involving gambling and Chapter 7's and have heard of them not being dischargeable. You would be better off waiting a year and not discussing with your lawyer what the debts were caused by. You may end up having your case dismissed and then you will be in a little bit of trouble.

[brian]

Trouble? What kind of trouble can i get in for not paying unsecured debt? Are you implying I could get charged with a crime?

[HHM]

I think what he means by trouble is that if your case is dismissed, then your debts won't be discharged.

Markers from Casino's are not discharable. But yeah, you're safest route is to wait atleast a year since your last major cash advance before you file.

Also, Nomo, I disagree, this is the very thing he NEEDS to tell his attorney so he can be properly advised.

[Dawn1970]

Just wanted to add- Good for you, going to Gamblers Anonymous to take your habit by the horns. You should be very proud of yourself for that.

[brian]

thanks for the kind words... do appreciate them!

[mrgg1111]

Hi HHM, I am trying to get some knowledge by reading some of the postings in the past. Is that true that there's no waiting period to file ch 13 like ch 7 does? and with ch 13 it wouldn't matter about how LARGE the cash advances is (within the ch 13 debt amt limit of course) because part of it would be paid back over the 3 - 5 year payment periond? One of my close relatives is having the similar case as Brian. Does my relative need to wait a year to file for Ch 13? or he just needs to wait 90 days? Any help would be appreciated. He wants to do Ch 13, not 7.

[hhou812hh]

I'm doing the same thing (filing ch13) for similar reasons. I haven't used any credit for 2 months now and will file in about 2 months from now.

They can't dispute anything since you are paying some or all of it down in a 13. The only thing they can try to dispute is if you propose to fund the plan and you don't pay them based on the "best interest", "best effort" test. They need to get what they would as far as non-exempt assets that they would get in a ch7 and you must give them ALL of your disposable/extra income possibly tax refunds, inheritances, law suits you may receive, etc. for 3 to 5 years.
I have about 20k left on cc's, but will not use/abuse it from now until I file just in case something happens before my discharge and I may have to convert to a 7 I don't want anyone to cry cc fraud.