Help with bankruptcy?

I need help with a bankruptcy filing I will be doing in a few months. Please only answer if you know the answer. Otherwise, please find another question to reply to. I am filing bankruptcy because I got into debt while I was sick.

I can pay off one or two of my 8 credit cards over the next few months. Should I try to do this to reduce my creditors? Will it help me at all or does it matter? One is a smaller balance of $510 I can pay off in soon (if I don't have to pay for a $665 traffic ticket). The other is a Kohl's card I will hopefully get a corporate refund put on it + then pay off the remaining few hundred in a couple months time. The rest of the debt I cannot pay off at all ($29,000) as I am unemployed + won't be able to find work anytime soon. Even if I could, the debt is still too much.

Please reply + let me know if I should bother trying to pay off the two credit cards so I have 6 creditors after me instead of 8. Thanks!

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  • 1 decade ago
    Favorite Answer

    I have been there and I do know.

    If you file chapter 7, all the credit card debt is written off--disappears and goes away. Do not waste your few dollars on the credit cards. Do not max out the cards or go on a spending spree either, as those statements will be reviewed, at least for the last several months.

    You will need to pay the attorney cash, so he will work for you--no checks. Any government bills, from traffic tickets, school loans, and taxes, are still owed. You other creditors such as car loan, mortgage, or furniture stores may try to reaffirm the debt, meaning you still will promise to pay them and "please don't take your items back".

    If you have just bought large ticket items, like a 56" TV fridge, or sofa, it may be repossessed, as possibly a car, jewelery, art, etc. But your old bed, old stove, kitchen dishes and clothing won't be touched.

    Medical bills, I'm not sure and someone wiser than I must answer that part.

  • Anonymous
    1 decade ago

    If you are going to file bankruptcy, I would not try to pay off any bills at all. Maintain all of your cash and let the judge figure it out.

    You may not be able to get out of paying the traffic ticket though. Still, I would not worry about paying any of the creditors. Why should you be favoring one over another. Again, that is the judge's job. You will need to hold on to as much cash as you can because you will not have any access to credit and apparently you won't be able to work.

  • Anonymous
    1 decade ago

    Don't pay off any creditors. There's no benefit to having 6 vs 8 creditors. Pay off the traffic fines -- they are not dischargeable in bankruptcy.

  • Anonymous
    6 years ago

    Here you can get the best rates on your area: http://www.loansvault.net/

    RE:Help with bankruptcy?

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