Sorry this has to go the BK route. Its a split 50/50 on here. Some say keep paying until the BK is filed. Then no lates will be on your reports even though the creditor will get burned. You gave it all you had and threw in the towel. Others will say stop paying now and keep the money for yourself. Lawyers will say quit paying so you look broke. No assests for a 7. They will pull your CRA reports that has to be filed and it will reflect you quit paying. If you kept paying then the trustee can say he/she can still pay their bills. So pay right up to the day you decide to file. Just in case you decide not to go thru with it. You wont have any lates.
I used my credit cards for travel and my daily spending. I had charges on them right up until I met my attorney. I still had a few subscriptions that crept in.
My attorney told me I could stop paying my credit cards it didn't matter because I was filing. He also told me that if I just couldn't stand not paying I could just pay the minimum on my cards. I paid the minimum on the cards I had bank accounts with and my paychecks were direct deposited.
It doesn't matter if you have a perfect payment history, once those accounts are marked IIB they are negative accounts.
I stopped paying my cards so I could afford to pay for my bankruptcy.
If you have small charges under $50 I don't think it will be an issue, especially if they are online. Only a fool is using a debit card online. The court just doesn't want to see you running your cards up to the max then filing.
Listen to your attorney, they know best hopefully. The firm I went with had extensive knowledge of the local trustees and the judge. They knew the red flags they look for.
Starting Score:583
@Stryder wrote:
@FireMedic1 wrote:Sorry this has to go the BK route. Its a split 50/50 on here. Some say keep paying until the BK is filed. Then no lates will be on your reports even though the creditor will get burned. You gave it all you had and threw in the towel. Others will say stop paying now and keep the money for yourself. Lawyers will say quit paying so you look broke. No assests for a 7. They will pull your CRA reports that has to be filed and it will reflect you quit paying. If you kept paying then the trustee can say he/she can still pay their bills. So pay right up to the day you decide to file. Just in case you decide not to go thru with it. You wont have any lates.
Me too Medic (sorry its come to this)! I am so proud of my credit and it was my Baby (I think I have/had arount 130k tcl).. i have hung on too long and used most of my reserves and I see nothing improving in the economy or the world. If I dont do it now, I will crash anyway, and be right where Im right now with zero money.
Your right, continuing to pay will mean nothing once they get the notice they're IIB.
I appreciate your words of support on how you try to help everyone through this...there are so many unknowns for those that have not gone there. People sharing their experiences here is incredible, even if its small, it means a lot to many. This is a great web-site!
When did you file yours? How long post BK?
Thanks
No problem @Stryder . Here to help out. In my siggy below has it all. Been a wild ride. You'll rebound in time. Best of luck on your journey to financial freedom!