Credit Score BEFORE Filing

[wesleyh09]

Good Afternoon. Again, thanks for all the great info in this forum. Just curious if anyone had thoughts on maintaining a good credit score before filing for BK? Meaning, I currently have no late payments BUT i have been living off of 401k depletions and I know the end is almost in sight. My BK attorney has instructed me to STOP all payments to CC now but wont that hurt the score more than if I pay them up until the hearing? Just curious.

[frogger]

Living off your 401K now is hurting you more than your credit score ever will. Stop spending your future..........

[LadyInTheRed]

Living off your 401K now is hurting you more than your credit score ever will. Stop spending your future..........

Exactly. Your credit score should be your last concern.

[IBroke]

My BK attorney has instructed me to STOP all payments to CC now but wont that hurt the score more than if I pay them up until the hearing? Just curious.

I have to agree to what frogger and LadyInTheRed said. And look on the bright side: The earlier the accounts in question go into default, the earlier the will drop off your credit report.

[AngelinaCat]

Just filing BK is going to whap your credit score up side the head. So forget about it.

STOP using your 401K. That is an exempt item in BK. And stop making payments on the CC. That is unsecured debt and will be discharged. Save this money up for your attorney, or an emergency fund. Example: I had to get a tire repaired today to the tune of $26.70. That wasn't a bad price, but if I didn't have the emergency fund, I wouldn't have been able to get it repaired.

[stevie2012]

Oh I made terrible mistake too. I was delaying the inevitable.

[frogger]

Oh I made terrible mistake too. I was delaying the inevitable.

I think that most all of us did. That is why we are so quick to tell people to "not" do the dumb things that we all did.

[wesleyh09]

Thanks so much everyone. I am on the same page. We DEF delayed the inevitable, and I am actually looking forward to being "all cash" the next few years. I SHOULD have been doing this the whole time. It is a new world that shows how BAD I was being for so long.

[dmc-2008]

Your score will tank immed when you file anyway, kind of silly to spend that money now! Good luck

[TXskyblue]

1. Don't take another penny from your 401. Not one red cent.
2. Stop worrying about your credit score. You're going through BK. Your credit score is going to be crap for a while.
3. Become fiscally solvent and make sure you're bringing in more money than you spend. If you don't do this, you're going to end back up in debt that you can't pay.
4. Stop paying your credit cards like your lawyer told you. You are throwing your money away. There is absolutely zero benefit to continuing to pay them. I am not exaggerating when I say that you will get just as much benefit if you take the cash you are paying towards them and you set it on fire.

[wesleyh09]

Thanks All. I love TXskyblue's response about setting the money on fire. Can't get much clearer than that. I will take all of the advice here. It is very well thought out. THANKS! I just gave my attorney my paperwork and we will be filling in Nov

[ksgirl38]

Thanks All. I love TXskyblue's response about setting the money on fire. Can't get much clearer than that. I will take all of the advice here. It is very well thought out. THANKS! I just gave my attorney my paperwork and we will be filling in Nov

If you just recently stopped paying then your credit score likely won't take a hit from the unpaid credit cards. It will take a hit from the filing of the BK. It takes about 90 days of non payment for that to catch up with your score. You can recover easily depending on how you choose to rebuild.