payments before banckruptcy

March 14th, 2009 by Questions

I`ve been making the minimum payments on my credit cards, line of credit etc for some time now. Becuause the interest rates and amount owing are so different they range from $50 to $550. I`ve read that you should not favour one creditor over another… is this what I`m doing by not paying them all equally? If I declare bankruptcy will this count against me? Should I be making equal payments to all regardless of the minimum?

Thanks for your help I find your site very informative I just wasn`t sure about these exact questions.

Posted from: British Columbia


One Response to “payments before banckruptcy”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

From the sounds of it you should have not problems. The legislation is really designed to cause problems if people are being dishonest and purposely paying off one creditor to the detriment of all the others. If you have just been paying the minimums, or some amount that you could afford you likely haven’t done anything you need to worry about. But when you have decided that you need to file a bankruptcy or a proposal you are then better off to consult with a local trustee and stop making any more payments on your accounts.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)