Paying Credit Card Bills Before You File Bankruptcy
Not all of the people who come in for a consultation are behind on their credit card bills. Many are current on all of their bills but have seen the writing on the wall and know that it’s just a matter of time before they’ll have to stop paying them. One of the last questions they ask at the consultation is whether they should stop paying their credit card bills.
First, you should know that you don’t have to be late on your bills to file bankruptcy. Second, when you stop paying your credit card bills can depend on when you plan on filing bankruptcy. When you stop making payments it won’t be long before your creditors start trying to get hold of you. They’ll call and send letters. Eventually, they’ll take legal actions and file a lawsuit. When that happens, the clock starts ticking. Personally, I would like to see someone file his bankruptcy petition before the creditor gets judgment. If the creditor gets judgment, it will be able to garnish your wages and bank account. If you own a home, it can place a lien on it. Of course, you can also file bankruptcy after someone gets judgment. If you need time to file your bankruptcy, you can file an answer to your creditor’s lawsuit, which will buy you more time. Remember, though, that creditors will probably take at least 60 to 90 days from the date of your last regular payment before they file a lawsuit. If you’re going to file bankruptcy in that time, you should be safe from lawsuits.
One additional question to also ask yourself is whether it makes any sense to pay debts that you’re going to eliminate in the next month or two. You can probably use that money for other things, like your mortgage payment, rent, or other living expenses.
Talk To A Colorado Bankruptcy Attorney About How To Eliminate Credit Card Bills
If you’re feeling overwhelmed by making the minimum monthly payments to your credit cards, personal bankruptcy may be the best option to get a new financial start. We hope you’ll come in for a free consultation with an experienced bankruptcy lawyer to learn how bankruptcy can help you. You can call 303.331.3403 to schedule an appointment or use our online scheduling system.