There is no requirement that you be current on credit card debt when you enter bankruptcy. In fact, most people are not.
However, be aware that if you slip behind on credit card payments, that will result in poor credit, collection calls, harassment and potential lawsuits. In fact, the summons of a law suit will make you want to file bankruptcy faster, even though the filing of the bankruptcy may hurt your chances at the refinance.
Because you're not sure how long the refi will take,...
You filed Chapter 13 bankruptcy in 9/2011. You were sued in 7/2012. Helpful, but we're missing facts.
First, considering that fewer than 5% of Chapter 13 cases filed without an attorney are successful, I trust you have a lawyer, and that you've already discussed this with him or her.
Second, your question omits other key facts. Such as, what's was the date of the incident for this new lawsuit? Had the event already occurred at the time of the bankruptcy filing? Was the potential...
You are not eligible to file bankruptcy at this time. The powerful "get out of jail free" card of bankruptcy can be used only periodically. and there is no refuge in bankruptcy court available for you for at least a couple more years.
You'll want to consider negotiating a settlement with your creditor, or (depending on your assets), maybe a potential lawsuit and/or judgment against won't affect you if you're judgment-proof.
Good luck to you.
Can creditors find out your bank accounts? Yes. Creditors do bank levies -- where your money is cleaned out of your bank account without any warning -- all the time.
Creditors also can do a setoff and take your money and apply it to a debt from the same bank.
Good news is that filing bankruptcy protects you from all this. See a bankruptcy attorney as soon as possible.
No, you can't go to jail. It would be awfully hard to repay your debt from there, anyway.
My hat's off to you for your determination to repay your debt. Certainly, no one ever HAS to file bankruptcy, and you sound like you want to work your way through this.
Watch out for this, though: they don't have to work with you on your terms. With judgments, future paychecks can be garnished, bank accounts can be swept out. So when you do get back on your feet, you may want to reassess the...
Thanks for writing. You use the word "arrears." Arrears for what?
Also, you say arrears are "for your daughter." It this a debt he signed with her? For her? To her?
You really need to talk to a bankruptcy attorney. If you pay half of $15,000, that's not a lot of debt for which you need to go through a bankruptcy. In fact, you don't really say why you're planning on filing for bankruptcy.
But, trying to answer your question the way it's asked: if you receive money, that shouldn't...
Seems like you had a contract.
You breached the contract.
They invited you to make an offer to catch up.
You made an offer.
They rejected the offer.
They're under no obligation to work with you once you broke the deal.