Should I stop paying my credit card bills?

Question

If I'm going to have to go bankrupt anyway, should I just stop paying? Or is it important that I talk to a lawyer right away? I'm too busy working to deal with this right now! Will this only make my situation worse or will it be the same? Could I just stop paying for awhile? Please see info at http://answers.yahoo.com/question/index;_ylt=AlPBeQslLYD22wcpmJcVGsjsy6IX?qid=20061207230155AAaxRgw

Answer 1

maybe you should see your lawyer first

Answer 2

You will have more leverage in a bankruptcy to make it voluntary than having your creditors force you into it, garnishes your wages, or puts liens on your property. You should consult an attorney that specializes in bankruptcy at once... don't wait! What if you do not qualify for bankruptcy and end up having to repay the debts anyway??? The sooner you file, the sooner you'll be relieved of the debts and the sooner it will come off your credit report (10 years). Remember that after you file you will find it harder to gain employment, insurance rates can legally increase, and future credit almost unobtainable. Ten years is a long time!!! You may want to consider an appointment with a debt management company that can lower your monthly bills and interest rates to give you a shot at getting out of debt voluntarily. Act fast before your creditors do. Check the following non profit agency for assistance and professional advice:

Answer 3

"
Don't file bankruptcy! It's stupid and you'll regret it for the rest of your life. If you insist on filing bankruptcy at least WAIT until someone actually sues you, wins and is garnishing your wages. As long as you make rinky-dink payments ($10 etc.) the credit card companies will probably never sue you. You'll just get nasty calls from collectors, but it's unlikely they will sue you."


This is WRONG WRONG WRONG.

Making so called $10 payments will NEVER resolve this issue. Debt repayment programs are in most cases a total waste of time. Your credit will never be repaired, doing both of these. Bankruptcy allows honest people who have made mistakes to rebuild and start over again. Bankruptcy will affect your credit report for over 7 years but that does not mean that you can obtain a secured credit card while you are rebuilding. Paying 10 a month fo rthe rest of your life is not a way to live. Bankruptcy will allow all of your debts ( those not included are student loans or some others) to be erased and you can rebuild and start over.

Answer 4

I would speak with a BK attorney ASAP.

Keep in mind that if you do file BK, you can still reaffirm (or agree to pay) any creditor(s) that you would like to pay. This helps because you can then be rebuilding your credit within a short period of time by still having positive credit in your credit report. I have seen people file BK and still pay their car payments and a few credit cards and then 18 months later have 680 plus score.

So dont let the BK attorney just include all debts in the BK, keep some creditors out of the BK and continue to pay them.

If your current situation has to do with a mortgage and home as well, please also consult with a CPA so you can determine the financial and tax ramifications of BK, which can be just as important and costly financially as having the bad credit.

Once you have weighed all of your options, then you can decide the best course of action.

Answer 5

Bankruptcy is not an easy answer, they can take your wages for the next 7 years to pay your debts. Cut up the card and ring the credit card company to make arrangements for some kind of payment to be made. Then ring everyone else you owe money and make arrangements too. Best you get in contact with them before they have to chase you!

Answer 6

I don't know what your particular situation is, or how much in debt you are, but another alternative besides claiming bankruptcy is to consult a debt counselor about contacting your creditors and setting up a payment plan.

Cut up your credit cards so you won't be tempted to use them again.

Plan and budget your income so you won't overspend and find yourself in a bind.

That way, if in future you need to apply for credit again, or for a loan, you can say that you made an effort to repay rather than back out without paying.

Claiming bankruptcy will make you a tumor to creditors, and you won't want that.

Good Luck

Answer 7

You are too busy working to deal with this?
If you don't deal with this right away, you will work for nothing for a very very long time. After the new bankrupcy law passed, they can still make you pay even if you file. So deal with it NOW.
Since you are working, you have income. Set aside some for your debt payment instead of spending it on that sexy mini-skirt.

Answer 8

Don't file bankruptcy! It's stupid and you'll regret it for the rest of your life. If you insist on filing bankruptcy at least WAIT until someone actually sues you, wins and is garnishing your wages. As long as you make rinky-dink payments ($10 etc.) the credit card companies will probably never sue you. You'll just get nasty calls from collectors, but it's unlikely they will sue you.

Although I don't agree with all of his advice, popular financial counselor Dave Ramsey gives excellent advice in the area of bankruptcy. He is usually able to guide his listeners by focusing on priorities like paying for food and shelter ahead of credit cards, etc.

Answer 9

OH MY GAWSH!!! DO NOT LISTEN TO HIM! What he is doing is trying to get you to not pay your bills so that in 4 months or so he would hope you return to him to file a chapter 7 bankruptcy. DON'T STOP PAYING!!! YOU WILL RUIN YOUR CREDIT! If you can, just pay the minimum payment on the ones you can. Then call the other cards and strike a payment plan deal with them. They will be more accecpting to get their money this way then not getting it at all. I am a licensed mortgage broker in Ohio and I see this ALL the time. Lawyers want you to default to a poin that you are forced to file a bankruptcy. If you do not own a house, then a chapter 7 bankruptcy is an option. This irradicates ALL of your debt, whiping your slate clean. It takes awhile to rebuild your credit, but it gets rid of EVERYTHING. If you do own a home, a chapter 13 bankruptcy may be ideal for you, again - ONLY IF YOU FEEL THAT BANKRUPTCY IS AN OPTION. I never advise my clients to stop paying their bill. What a bunch of bull.

Answer 10

Cut up the plastic now and talk to your lawyer.

Answer 11

NO, don't do anything without consulting an attorney first! You don't want to end up in more debt and more trouble. Also checkout Oprah's America's Debt diet, it is enlightning! www.oprah.com