Filing Chapter 7 bankruptcy to avoid being sued by credit card company
Date: Tue, 06/26/2007 - 19:03
GUESS what? They said that they can't lower my payment to accomodate the 200.00 monthly payment that I need to come up with the difference. I told them that I had no choice but to pay them 200.00 or I would have to drop out of the program.
Well, guess what again? My admin fees end JULY...so they have all THEIR money and they were not as understanding today with me and could not advice me on anything other than I would have to continue to make payments to them on time. I told her that I wanted to drop out of the program and she said she would see what she could do for me and that she would call me back.
GUESS WHAT? She has not called me back. I don't think she will either. In the mean time, I contacted a lawyer and I am filing Chapter 7 bankruptcy.
I go Thursday with my papers and my information. He is working with me on my payments to them. He told me not to tell the settlement company yet. See, I am not paying them next month, I am paying our lawyer.
My question is: DO I just call the settlement company and tell them I am dropping them and stop sending them money and close my acct at my bank.
I have this acct open that is ONLY used for me to deposit their monthly payment in and they debit it out. Their name is not on my acct, so I can close it and not get a hot check if they try to debit from it right? What if they try to tell me I owe them July Payment? Because I am paying out lawyer with it.
I was told that with Chapter 7 we can keep our house, two vehicles and all of our furniture/household items. So, this makes me happy. Previously I assumed I would have to give up our personal belongings in our home and etc.
I feel a ton of pressure already taken from me already. Oh, and he thinks he can slow down the card that is suing us from going on to court for a hearing...I am Thankful for that....
I should have done this in 2005.
Now, has anyone here survived bankruptcy and are you able to get another vehicle after bankruptcy for decent payments, like a year later or so? We have a 1989 that is on its last leg. I have been told that with our good house payment and truck payment never being late, and with paying on them for another two years would rebuild most of our credit, plus I have one credit card acct still open that I pay on monthly on time.
I am just still kind of nervous.
I also told him that my husband and I have seperated and got back together and have filed seperatly for years now and he said that was fine!!!! Many couples split up while under a financial situation like this.
I find it hard to believe that I am ready to file bankruptcy and ready to be able to breath without worry any more.
Any suggestions for me?
GO for it. Is that supposed to be intimidating? Well it is not,
GO for it. Is that supposed to be intimidating? Well it is not, I can speak the truth from experience and from watching others go through thinking they are filing a 7 and be forced into a 13, and the new laws are not hype. And what bk judge has the time to log onto the internet based on what somebody they do not even know states? Are you for real? Do you think we don't know from experience? Are you saying that we did not experience this? You want to hear what you want to hear and if somebody is telling you something that disturbs your reality, you don't want to hear it. People are telling you that nothing is a guarantee, and to be prepared for the unexpected. I personally, will continue to post my thoughts and experience, judge or no judge reading my posts.
Personally, I'm not quite sure you keep coming here and posting
Personally, I'm not quite sure you keep coming here and posting since you have your advice and information, it seems you are set, you only want to come back and say what somebody else said. So if it is advice you are looking for, it sounds like you have an attorney doing that, which is what you paid for. We are not lawyers here, and you should stick with your legal counsel and follow his advice.
Thank you.... I am sticking with my lawyer. I just don't get
Thank you.... I am sticking with my lawyer.
I just don't get this place. I was complaining awhile back about my debt settlement company and being served a summons. I was told by many to file BK, I was BK material... :twisted: but I did not want to. I was warned about the debt settlement company and I wanted to do what was right.
Not that I found out about the debt settlement company and decided to file BK, it is like your saying my legal advice is all wrong. So, basically all I learned on here was that the debt companys lie and that lawyers lie!
Who out there can help me besides a lawyer? Who can make me Judgement proof? I have no clue as to what to do. I have to keep our home and car. I have no assets to liquidate, and I am exempt certain property which our home and vehicle falls under. I have been told this by (3) attorneys, a Judge and online...
but yet you all keep saying, "THAT IS ALL A LIE" basically in a nutshell.
I am going insane!!!!!!!!
The only way to become judgement proof is to pay your bills. Tha
The only way to become judgement proof is to pay your bills. That is the only way any of us can become judgement proof, otherwise, it can and will happen. I personally, don't have to worry about credit cards coming after me for non payment, never had them, never will, I don't believe in credit cards. The key to being judgment proof, is not to live beyond means and pay bills. Just like getting second opinions with doctors, same can be done with attorneys, and who knows, they may all end up saying the same thing, or maybe they won't. And I believe you are construing people's words by stating people here are saying debt settlement companies and lawyers lie, a bit of a blanket statement and not accurate at all.
Re-read this whole thread.... It is nothing but disencouragem
Re-read this whole thread....
It is nothing but disencouragement against me keeping my home and vehicle in chapter 7. In a nutshell, it is telling me the attorney is feeding me BS!
Now, Steelers, who would you believe? The forum you are reading online or your real life face to face individuals you are talking to: lawyers, friends in bankruptcy and a local Judge?
I re-read the Oklahoma law on bankruptcy where I took the means test. It clearly says, my property that I am paying on now: Home and Vehicle is mine, if the equity is not more than my allowed exemptions. That is the law, updated on Feb. 2007.
debt
Linda, I think you are reading into these posts a little too harse. Steelers is only trying to give you advice. What she personally knows to be true. No one here wishes you any harm. The laws did change in October 2005. However we are not lawyers just ordinary citizens like you. I do wish you the best. KYSIDE38
I understand that, that is why I keep coming back. She has went
I understand that, that is why I keep coming back. She has went through it, why would she lie about it.
My cards are: drop the debt settlement program and try to do it on my own, with one card in court already
or
file chapter 7 and keep my home and vehicle. ** They are telling me that won't happen.**
I just don't know who to believe anymore.
I'm currently helping someone do a chapter 7. So i do know what
I'm currently helping someone do a chapter 7. So i do know what goes into it.
No one here is saying you will get forced into a chapter 13. Just that it COULD happen. Not WILL happen. You are not understanding what we are saying. You take anything you don't like as negative, when we are just telling you the facts.
You may be fine with a 7. Just in our combined experience with filing under the new laws it is very difficult to file a chapter 7 if you have a job and assets. That is all we are saying. Plus, student loans are not dischargable in chapter 7 bk.
I saw a lawyer with my friend too. The lawyer told her all sorts of stuff to try to get her to sign up with him. That is their job, how they make thier living. Besides, it would be the trustee that would have the ultimate desicion, not the lawyers or the judge.
I know when I was going to file, the lawyer said I had to hurry
I know when I was going to file, the lawyer said I had to hurry before the laws changed making it much more difficult. I decided not to file and deal with my mess the hard way.
The new laws do make it much mroe difficult to file for bankrupt
The new laws do make it much mroe difficult to file for bankruptcy. The new laws protect the creditors, where the old laws protected the consumer.
No one is saying you shouldn't file, or can't file. Filing for bk is a decision you have to make for yourself. We are only telling you what could happen. No where in these posts did anyone say it will happen. It's just that since you own a house and have a job it makes it much more difficult to file for a chapter 7.
http://www.debtconsolidationcare.com/settlement/dropout-debtcomp
http://www.debtconsolidationcare.com/settlement/dropout-debtcompany.html
A link to the old post about this situation where I discussed the court proceedings.
25,000 seems like such a little amount to bankrupt to me especially since you only owe the card suing you 5k. Why don????????t you wait until after the card sues you and gets a judgment before you decide to bankrupt? I have a feeling that a judge will not look so nicely at a credit card that is not willing to work with your debt consolidation company. I think if you go in front of the judge well prepared with a written budget listing out all your monthly expenses against your income you could make a strong case that you can not afford the payment they are requesting. Heck if you can come up with 1,000 buy then they might even settle. Worst case scenario is the judge screws you over and orders garnishment and then you file bankruptcy and make it go away. Check with your lawyer to be sure you can bankrupt a judgment if they get one before you do this but I think you can.
I can not risk a judgement or garnishment. They don't care abo
I can not risk a judgement or garnishment.
They don't care about our income or budget,
just if you owe or not the debt..
I dropped the settlement company like a hot
potatoe. I should have never, ever signed
up with them!!!!! I could have probably
settled most by myself already, but I trusted them
and now they are higher than original amount.
oh, well, by keeping our home and truck--
this will reestablish our credit on our
credit reports. I actually look for our
credit to jump up in score just from our
bankruptcy alone. I have student loans I
will be paying on and that will improve my
credit score too. No more credit cards for
us, we have done just fine without them now
for near two years.
Quote: I can not risk a judgment or garnishment. They don't c
Quote:
I can not risk a judgment or garnishment. They don't care about our income or budget, just if you owe or not the debt.. |
For the judgment it is true that they will not look at your income or budget but once they go for garnishment or if they want to confiscate any assets they need court approval and at that time the court will examine all your documents. A judgment would be cut and dry. Either they prove you owe the money and a judgment is granted or they can not prove you owe the money. I think what will happen are they will get the judgment then once they go to garnish the court will limit the payments to something like $25 a month not the $200/month that the card wants if your monthly budget is already squeezed to the maximum. A judge is probably not going to grant a payment that forces you to be late or go delinquent on all your other debts. This might not matter though if you do not want garnishment no matter what the payment is. Another option is they might settle for something like 1000 if they think you are going to bankrupt. $1000 is better than nothing after all. You can settle at any point in the process too even after they get a judgment. The one item I am not sure about is what effect a judgment has if you want to bankrupt that debt. You need to check with your lawyer to make sure you can bankrupt the debt if they get a judgment but I am pretty sure you can. Also while you are putting that lawyer to work try to get him to settle the debt for what ever you can afford. He might be able to do it if you can not.
I think I need to sit down this weekend and reconsider the bankr
I think I need to sit down this weekend and reconsider the bankruptcy verses doing this all on our own. Thanks for the information.
Just make sure to examine all your options carefully. Do not le
Just make sure to examine all your options carefully. Do not let some lawyer talk you into bankruptcy unless you think that is your only option. A bankruptcy hangs around for a long time leaving a big black mark on your credit. Also many applications for all sorts of different things ask if you have ever filed bankruptcy. The answer to that question would be yes even if 20 years lapsed between when you filed and when you are filling out that application. Hopefully the credit card company won????????t be a pain in the butt and will work with you. I know the entire process is stressful but I would avoid the bankruptcy if possible.
Paying the minimum monthly balance is always the best idea to a
Paying the minimum monthly balance is always the best idea to avoid teh credit card bankruptcy, It only includes the interest on your balance debt amount.
so much wrong information here, my gosh... contact a couple bank
so much wrong information here, my gosh... contact a couple bankruptcy lawyers and consult with them... then pick one to file your bankruptcy. You can keep your home in chapt. 7 and student loans are not dischargeable under chapt. 7 but can be subject to a payment plan under chapt. 13 (but that doesn't prevent interest from being added to principle).