Selectively PayOff smaller (DISCOVER CC) debt before filing?

[i'llBEback]

What is the name of your state? CA
Thought I'd check before spending the very last of my cash & still have enough for an atty. (as I have no paycheck coming in... I'm freelance until I find FT Job)
Q: Wanted to know if I should PayOff this CC? Or would this create more problems? I've heard from Ladynred DISCOVER sues, that's why I'm considering @ least ending it w/ them now.
( a bit of the history)
I received three letters, First was one w/ a FREE long dis. PHONE CARD stating that they would settle my acct. for 40% of what I owed (but I had no $) so I could not meet their 5/20/06 deadline... Second letter stated if I did not call them they may secure LEGAL REP. to collect if I did not contact them.

Today I recieved the Third letter from Discover. This one is a low quality zerox-type letter from a "Law Office" in a neighboring city... this one is for collections & slightly threatening further Legal Action if nothing is done within 30 days...

Q: Was thinking of trying to settle/pay. See if I could pay the orig. offer of 40% of OD which was offered.......... not even sure if they would now. Is this alright?

Thanks for any feedback or input.

 

[Ladynred]

Nope. Any payment you make to ANY creditor of $600 or more within the 90 days before filing would be considered PREFERENTIAL and the Trustee could demand that money be returned.

 

[i'llBEback]

Ladynred ~ "nope" means NO... so...

Don't pay Discover anything. Alright. WOW 90 DAYS! (BTW: just got a call on the phone re: a "deal" that would save me $2k (on $4.5k OD) if I called them back. Guess they know I have zero assets & NO income anymore).

So I'll have to beat them to the punch then, as I'd like to avoid any judgements before filing CH7.

Do you know if Discover usually serves a summons? REALLY serves a summons... & not just say they did so I would be likely to "not show" & LOSE. Also, If a Summons is served, can I FREEZE everything by Filing?

I ask this as I'm trying to find an atty etc. (need a bit more time).

I know this may seem lame, but I'm waiting to file until the very last moment. Zero $ in my bank acct & no real paycheck currently so I'm not worried of a frozen account etc...
Also, are there any final "indicators" of a REAL SUIT?

Thank You for you help.

 

[Ladynred]

Yes, Discover REALLY serves a summons, they don't fool around.

Don't want until the very last minute, you may miss the deadline. Lawyers are swamped now, I wouldn't wait much beyond 9/15, if that, 9/1 would be safer.

 

[i'llBEback]

Thx Lady... I will file before end of Aug.

Guess my BK will just become a bit more complicated if I get served. I'll suck it up...

Do all proceedings including "Court Dates" get frozen once BK papers are filed? (even when not an Emergency Filing).

~ Cheers

 

[Ladynred]

Once you file for BK and get that case number, ALL collection activity MUST STOP, including lawsuits.

 

[i'llBEback]

............Nice...