STOP Paying Your Bills!? Chapter 7 Bankruptcy

TL;DR

Learn when it's appropriate to stop paying your debts before filing for bankruptcy and which debts need to be prioritized.

Transcript

hi i'm john skiba and i'm founder of the consumer warrior youtube channel i'm also a licensed attorney in the state of arizona and in this video i'm going to answer the question when you should stop paying your bills if you anticipate filing for bankruptcy but if this is your first time here to my youtube channel please go ahead click subscribe che... Read More

Key Insights

• 📁 Continuing to pay debts before filing for bankruptcy is recommended unless a conscious decision to proceed with bankruptcy has been made.
• 💳 Credit card debts can typically be stopped once the decision to file for bankruptcy is made, as they are discharged in the process.
• 😨 Secured loans, including home and car loans, need to be prioritized and continued to be paid to retain the collateral.
• 😷 Medical debts can be discharged in bankruptcy, but individual medical providers may choose not to retain you as a patient.
• 😷 Negotiating with medical providers before bankruptcy may allow for continued treatment while undergoing the process.
• ✋ Stopping payment on creditors without filing for bankruptcy can have significant consequences, so it's essential to consider all options and consult with a bankruptcy attorney.
• 👮 Bankruptcy laws vary by state, so it's advisable to seek guidance from a qualified attorney familiar with the laws of your jurisdiction.

Questions & Answers

Q: When is it advisable to stop paying credit card debts before filing for bankruptcy?

Once the decision to file for bankruptcy has been made and you have consulted with an attorney, it is generally acceptable to stop paying credit card debts. However, it's important to consider individual circumstances and consult with a bankruptcy attorney to ensure this is the best course of action.

Q: Are secured loans, like home and car loans, affected by bankruptcy?

Secured loans, which have collateral tied to them, such as home and car loans, are not automatically eliminated in bankruptcy. To retain your house and car, it is crucial to continue making payments on these debts.

Q: What happens to medical debts in a Chapter 7 bankruptcy?

Medical debts can be discharged in a Chapter 7 bankruptcy. However, it's important to note that individual medical providers may choose not to retain you as a patient if the debt owed to them is discharged. Hospitals, on the other hand, typically continue to provide service despite the discharge.

Q: Can I negotiate with my medical provider to retain their services during bankruptcy?

It is possible to negotiate with individual medical providers to retain their services during bankruptcy. Some arrangements can be made to ensure continued treatment while going through the bankruptcy process. It's advisable to contact your medical provider and discuss your situation beforehand.

Summary & Key Takeaways

• People who are considering filing for bankruptcy often wonder when they can stop making payments on their debts. The answer depends on the decision to proceed with bankruptcy.

• Unless you have decided 100% to file for bankruptcy, it is advised to continue making debt payments if possible. Consulting with a bankruptcy attorney can help determine the best course of action.

• Credit card debts are commonly stopped once the decision to file for bankruptcy is made, as they will be discharged in the process. However, secured loans, such as home and car loans, need to be prioritized and continued to be paid.