When Should You Stop Paying Your Creditors in Minneapolis, Minnesota
When you take the leap to speak with a bankruptcy attorney, a big weight should be lifted off your shoulders, as you will be given your options for taking control of your finances again.
One big question that most clients have is when should I stop paying my creditors. Every case is different, so take this blog as very general information and always get legal advice from an attorney before you stop paying your creditors.
Each of your creditors are different, therefore, whether you should continue paying them or stop depends.
Secured creditors are creditors with liens on your property. The best examples are usually homes, vehicles, boats, campers, etc. If you want to keep your secured property, you will need to continue paying on it. If you stop paying, the secured creditor can repossess. If you are wanting to surrender your secured property, then you may be able to stop paying on it prior to filing.
Unsecured creditors are generally credit cards, medical, personal loans, or pay day loans. Typically, when you decide you are going to move forward with a bankruptcy you can stop paying these creditors. You will also want to stop incurring any debt with them as well.
Priority creditors are generally tax debt. If you have a payment plan with the IRS or Minnesota Department of Revenue, typically you will want to keep paying on it. If it is newer tax debt, it will not be discharged in bankruptcy.
You will want to continue to pay the necessities you have, for example, utility bills, cell phone, rent, insurance, co-pays etc.
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No matter where you are in Minnesota, if you have any questions about bankruptcy, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
