Contributor
Posts: 90
Registered: ‎11-12-2010
Re: when to stop paying on stuff before filing ch7

That's a good point. You can't show preferential treatment in paying your creditors before BK, and if you pay more than about $600 or so to a creditor in period of serveral months (6 months or so, check with your BK attorney on this) you have to justify it and show you weren't giving preferential treatment to the creditor. That's why I said pay off small accounts  that don't fall within this stipulation. The less accounts you have in BK the better. Talk to your BK attorney before you pay off any accounts. Your attorney, like mine, might say it won't matter and let them all go to BK. I found that wasn't true in talking to the credit bureaus, and the more accounts you have in BK the worse it is for your credit score, apparently. Of course, I found this out after filing BK.