Waiting to file?

[Anonymous]

hi all,

So I am eager to file bankruptcy but it will have to be put on hold as I have to deal with a more serious debt in the time being. That being said should I bother trying to pay off one or two creditors if I can before I file or should I just stop paying them all? Also if I stop paying most of my creditors won't the others close my accounts anyway once my fico score starts to crash?

[Anonymous]

If you are considering filing I think people recommend speaking with an attorney and don't pay on any debt as it's a waste of money and paying specific creditors and not others will be taken back by the trustee anyways and distributed to all creditors.

[jmw1]

Sounds sketchy. Paying "more serious debt" ahead of others sounds like a preference, especially if it is family, close friends, or business partners. It can also be considered fraud under the UFTA. The trustee will look at your transactions and undo them if they're for more than the minimum required payment on the note. The lookback is 90 days for non-insiders and 1 year for insiders but those periods can be extended especially for insiders.  In general it's a waste of money to favor certain creditors and it probably won't be allowed anyway. Talk to your lawyer before you delay to deal with "more serious debt".

[Anonymous]

No, its just I thought I would have the money to file right away but it looks like I won't for a couple of months. In the mean time I just wanted to see if I could try to pay one or 2 creditors to lessen the damage I am doing. At the end of the day I don't want to burn anyone. I know I can't pay everyone though and was just wondering if it was ok to hurt as little people or creditors as possible is all.

[jmw1]

Most people raise the money to pay the lawyer and filing fee by burning all of their unsecured creditors all at once and devoting the former minimum payments to the lawyer so they can get the process started as soon as possible.  If you can't afford to file today, you can't afford to pay a single dime to unsecured creditors in a goodwill gesture. The banks don't care about you and you shouldn't feel the least bit bad about burning them.

[Phoenixupward]

Have you talked to an attorney?  Are you filing in NJ?   Attorneys will accept installment payments just to start the ball rolling.  If you have bottomed out, it's time to clear the dust and debris and begin to rebuild your financial life.  The longer you prolong it, you are delaying your financial freedom.  Good luck. 

[FireMedic1]

The money you are or would pay the debts and then file isnt a smart move. Why waste what will be zero'ed out and closed either way. Just pay the lawyer and be done with it and start your rebuild after DC.

[Azuieldrago]

Don't pay anything, use that money and file immediately. It is a waste to pay anything then file to only wipe out the remainder. File, get it all over with and that new serious debt, doesn't mean anything the moment you file. 

[ballysdad]

So here is my 2 cents from another NJ filer.. I paid my minimum payments to all my creditors up to the day I filed. It was a personal thing and my lawyer advised against it. I was careful to cut out preference payments ahead of time but still had history (over a year) of payments to my dad. I was also careful not to pay any non secured creditor more than $600 in the prior 90 days, as hard as I tried I still went over by a little for some. All of this was captured on my petition including preference payments.

So what would I have done different?

I would have stopped paying EVERYONE the minute I decieded BK was right for me

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@Anonymous wrote:

hi all,

So I am eager to file bankruptcy but it will have to be put on hold as I have to deal with a more serious debt in the time being. That being said should I bother trying to pay off one or two creditors if I can before I file or should I just stop paying them all? Also if I stop paying most of my creditors won't the others close my accounts anyway once my fico score starts to crash?

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@Anonymous wrote:

hi all,

So I am eager to file bankruptcy but it will have to be put on hold as I have to deal with a more serious debt in the time being. That being said should I bother trying to pay off one or two creditors if I can before I file or should I just stop paying them all? Also if I stop paying most of my creditors won't the others close my accounts anyway once my fico score starts to crash?

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[BungalowMo]

Greetings!  I'm new to this myself.  Not the forums, but backruptcy!

I began the process in January & it was discharged in June.  What you continue to pay, and what you just let go of depends....I know you said it's on hold, but when do you think you might file?

When I initially spoke to my attorney to get some information, I asked him "when should I stop paying"?

He said "are you serious about doing this"?

Me..."Yes"

Him..."Today"!

If it is only going to be delayed by a month or so, I'd save your $  & stop the payments now.  If it is going to be another several months, don't stop.

Here's the thing, once your attorney files the papers, they IMMEDIATELY have to cease all contact with you.  Calls, mail, email. All of it.

If you stop the payments before you hire your attorney, then you wait several months, your creditors can hound you & eventually send your accounts to collections & everything gets messy.

I'd find an attorney to talk to & get some basic info as it relates to your personal situation.  Most give a free consultation.  Maybe talk to a few & see who you get the best vibes from.

Doing mine when I did....I had my hearing over the phone.  It was nice to not have to sit in front of the judge.  No one could have in person meetings!