Bad Idea?

What is the name of your state? CA

I have to wait for about 5 months to file a BK due to a divorceprocess still pending. I cant make these payments though so should I set up a plan with an agency for lower payments? Would this hold off the creditors for a few months? Not sure what to do while I sit and wait. Already stressed enough as it is. Thanks

[Ladynred]

How far behind on payments are you now ?? If you're not behind yet, and you know for sure you'll file w/in 6 months, let the cc payments go and save the money for your attorney. The collections will be a pain, but you can probably manage to ignore them for the next few months. It takes 6 months (180 days) of non-payment before they charge-off. You're in no real danger of being sued by any of them before that point and likely not too soon afterwards either.

Thank you. I have never been late for the 2 years Ive had these accounts but last month I called them all asking for a 'skip' payment which only 3/4 agreed to..the others I sent less then the min payment. Then this month I sent them all a letter with a very small payment. If I just keep sending $10 to them will it keep them off my back? or am I in an equal position just stopping payments altogether? You mentioned "charge off". meaning the creditors call it a charge off when the debtor doesnt pay for 6 months so they send it to aggresive collectors? thanks for your help.

[Ladynred]

Charge-off is an accounting term - it means, basically, that they have little or no hope of getting the money from you so they write it off their books as a bad debt and report it to their board and stockholders, and the IRS, as a loss.

Paying them $10 a month won't keep them off your back, unfortunately. In fact, they could still charge off the accounts as its not just 180 days of non-payment, but non-payment or INSUFFICIENT payments - insufficient to bring the account current.

Once they charge-off the accoutns, they will typically assign the account to a collection agency - or 2 or 3, who will hound you to pay. However, once that happens, the FDCPA is on YOUR side and you have some weapons to fight them with - so to speak.

Save your money, just quit paying them if you're certain your going to file bankruptcy. The only creditor that is considered very dangerous lawsuit-wise is Discover, they are quite nasty and will sue over almost any amount.