We are filing Chapter 7, we are still current, do we keep paying the minimum? We use credit to pay the minimum
Answers:
Why are you paying? Stop! After BK you credit builds up anyway.
That strategy could cause problems with the filing. Sometimes when one creditor is paid a higher amount just before the bankruptcy, other creditors can put a claim to recover some of this amount. Their argument is that all creditors should receive an equal percentage of the debt. Check with your attorney for specifics on how this could cost you in the long run (including additional legal fees).
Assuming the bankruptcy will be discharged, there would be no reason to pay them anymore. The accounts will all remain on your credit reports as negatives either way (10 years for a bankrutpcy).
Unless you are able to remove them. Find out how to dispute negative accounts, including bankruptcies at the site below.
The judge will want to know why if you are current and still able to pay the minimum amount on your bills you have to file for bankruptcy. You should stop paying on them it is like dumping money down the toilet. Once you file your credit will be damaged anyway, regardless of whether you were current when you filed.
Hi,
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