2007-12-11 15:44:46 · 10 answers · asked by ruizvegas 1 in Business & Finance ➔ Credit
You are paying the attorney and he is the expert. Listen to him unless your wife is a bankruptcy attorney.
2007-12-11 15:49:03 · answer #1 · answered by Gem 7 · 1⤊ 0⤋
If you file bankruptcy, you will have a really difficult time getting a house especially with a payment you could afford. First collect all 3 credit reports and see where you stand. Next, the charged off debts, call and ask for a settlement offer, usually they can cut how much you owe by half and some are willing to do that in installments. Next, the debt that you still have open, call the creditors, it may be a battle and be prepared to spend a lot of time but you can usually get your interest rate dropped. Now, prepare a budget, be strict, allow enough for rent utilities etc, try not to eat out and streamline other expenses, try to carpool etc. After you figure out how much you have to work with, organize your bills to the one's you owe the least on to the one's you owe the most on. Pay the most to the smallest one's while paying minimum to the rest. When the first one is paid off, take the amt you were paying on that card and add it to the minumum on the next one and so forth. Good luck
2016-05-23 04:15:28 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Listen to the attorney. You have to list any creditor you've paid over $600 to in the past 90 days, so it is very important to stop paying your creditors. Why pay down a debt that is getting discharged? That defeats the purpose and the trustee will go after creditors that you paid too much money to to get the money back to properly disburse to creditors.
You want to keep paying for any secured debt you have though, assuming you want to keep the property (house, car, etc). If you plan to surrender it, then don't pay.
Your bankruptcy lawyer knows what he/she is talking about. This isn't about trying to get a settlement, this is about complying with the bankruptcy code and having your bankruptcy go smoothly. I'm sure your wife has good intentions, but it isn't going to benefit you or her to pay down the debt.
As for what will be reported on your credit report after you file. Once you get your discharge, send that and your list of creditors to each of the three credit reporting agencies. Creditors can rarely be bothered to update them as to the fact their debt is discharged, but nothing stops you from doing it and it's better to have it listed as discharged than some other negative notation.
2007-12-12 09:37:30 · answer #3 · answered by Lesley 5 · 0⤊ 0⤋
We filed 2 years ago. Your lawyer is right, if you keep paying it, it doesn't look like you are having any problems. However, you will have to back track after your bankruptcy because the companies you did not pay will report that to the credit bureaus. We have recovered very well, gotten excellent loans since then. Good Luck!
2007-12-11 15:57:58 · answer #4 · answered by jwilliams22mn 2 · 0⤊ 0⤋
If you can afford to pay them down then why are you filing a BK? I'm thinking your wife isn't ok with filing the BK. You shouldnt file it will really hurt you guys in the future, I would at all cost not file even if it ment both of you getting a second job. It's your debt take responsibility for it.
2007-12-13 05:59:08 · answer #5 · answered by jt6341 3 · 0⤊ 0⤋
If you are filling for bankruptcy, dont pay off anything. I worked for bank of america in the past and dealt with bankruptcy lawyers. By not making anypayments right now, it will give you leverage later on with companies to accept partial payments and close your accounts. By not paying, the hope is that basically you can settle and maybe even avoid bankruptyc filling alltogether.
2007-12-11 15:54:30 · answer #6 · answered by hsingh86 2 · 0⤊ 1⤋
You went to a lawyer for legal advise. Listen to him. Your wife is not a good one to ask since you are filing bankruptcy. She should have paid them down before not now.
2007-12-11 16:55:25 · answer #7 · answered by kim h 7 · 0⤊ 0⤋
Why pay an attorney if you're not going to listen? If you're filing bankruptcy you're just throwing money away. Maybe she is not OK with the whole idea.
2007-12-11 15:52:26 · answer #8 · answered by marie 7 · 0⤊ 0⤋
Be very careful. If you pay on a debt that was cleared by bankruptcy, you may end up having to pay the whole amount.
2007-12-11 15:50:19 · answer #9 · answered by Tessie 4 · 1⤊ 1⤋
stop all payment if you're 100% filing BK. It's just money you're throwing away. Besides if you can pay, it makes it seem your don't need BK as much.
Why do spouses intervene with no expertise?
Actually maybe she has good values and it just feels wrong to stop sometimes.
2007-12-12 13:41:54 · answer #10 · answered by Lil Blousou 3 · 0⤊ 0⤋