readytofile7 Posted November 18, 2009 Report Share Posted November 18, 2009 I'm planning to file Ch. 7 this week or next and I still have some questions. I have an attorney but at times I feel like I don't get complete answers. I'm not late on my payments, I STRUGGLE every month to make them out of pride I guess. I know that I rob peter to pay paul and I'll never be able to catch up hence the ch. 7. Should I stop making the payments before I file?? I have been doing everything to stay current while my attorney and I figure out if ch. 7 will work. If it didn't I wanted to "try" and avoid more late fees and even higher interest rates. Will this look bad to the trustee if I'm current? Even if I can't be for long? Please help...thanks in advance! Link to comment Share on other sites More sharing options...
WhoCares1000 Posted November 18, 2009 Report Share Posted November 18, 2009 A chapter 7 is liquidation which means your creditors get all of your unexempt assets as well as any assets that are backing up a loan and then all your other debt is forgiven. If you stop paying your creditors, the worst that can happen is that you cannot do a chapter 7, the creditors sue you, get a judgment, and take your assets. In other words, if you need the money for your basic expenses (food, utilities, rent/housing, reasonable transportation) then stop paying your creditors. They will call you and get nasty but you do not have to answer the calls.As far as being current up to bankruptcy, your forms will tell the trustee what the story is. In fact, you will simply be one of the few who pulled the trigger at the correct time rather than after emptying retirement accounts and other exempt assets to take care of creditors. Being current up to the date of filing will not raise any eyebrows what so ever. Link to comment Share on other sites More sharing options...
readytofile7 Posted November 19, 2009 Author Report Share Posted November 19, 2009 Thank you for taking the time to clarify that. I guess I was afraid they would say "well, you CAN do it" and reject the Ch. 7 filing. My only other question is that I've read a lot of these posts and many people say that durring the stay you can put money away...but where? I was under the impression that bank accounts can be emptied. I have a 1st and 2nd with B of A which I will reaffirm but no lines of credit. I also have a savings (empty now) with a credit union and will reaffirm my jeep note with them. Should I stop direct deposit? Will my husbands account (joint) be in danger? Sorry for the rapid fire questions, I'm just trying to make sure that I do this the right way. Link to comment Share on other sites More sharing options...
WhoCares1000 Posted November 19, 2009 Report Share Posted November 19, 2009 The stay should prevent bank accounts from ending. The bankruptcy court is only interested in the assets you had on the day you filed bankruptcy. If you get paid for example the next day, that money is not property of the trustee or the bankruptcy proceedings so you can save all of the money you want. Your direct deposit should be fine and if you husband has a separate account, that should not be part of the bankruptcy unless he is filing too.Note however that if there are joint debts, then the creditors will immediately go after your husband as soon as the BK is settled. Link to comment Share on other sites More sharing options...
readytofile7 Posted November 19, 2009 Author Report Share Posted November 19, 2009 Thanks, you have been very helpful. Link to comment Share on other sites More sharing options...
trueq Posted November 26, 2009 Report Share Posted November 26, 2009 However, go to hearing and say..."judge I apologize for getting behind and have brought payments current. I am dedicated to fullfilling the remainder of the plan."99 out of 100 judges will be satisfied and keep everything as is.Judges only really dismiss Ch. 13 plans if you are not paying and offer no explaination for the issue and refuse to follow the terms of the plan. Link to comment Share on other sites More sharing options...
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