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#1
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Chapter 7-Creditor payment questionHello All! I am trying to budget for my pending Chapter 7 bankruptcy and I have a question. At what point do payments to creditors stop? For example, if I file bk in the first week of April, do I continue to pay until the creditors meeting, or until the whole process is finalized, and the bk is discharged approximately 3 months later? Any assistance is greatly appreciated. |
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#2
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| If you were going to file in April, you should have quit paying months ago. Are you still current on all your bills? Have you even been to a lawyer yet? Are you sure you qualify for a chapter 7?If you have the income to pay your bills, you may not being able to get a bk discharge. |
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#3
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| Here's what I tell my clients: The second you decide that you're definitely going to file a bankruptcy petition is the second at which you should stop paying your unsecured creditors (credit cards, medical bills, etc). You should, however, continue to pay your secured creditors (your house, car), however, and the insurance bills related to them, if you intend to reaffirm on those debts. If you do not intend to reaffirm on those debts, then you can stop paying them also. However, those items can be repossessed once you stop paying, if your petition has not yet been filed. No, the late or missing payments will not look good on your credit, but if you're going to file a BK, your credit report isn't going to be stellar anyway. |
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