Will I make it until next April before getting sued?

[dlynk196]

Hi Forums,

It is sad, but my wife and I will need to file for chapter 7 bankruptcy once again (filed in April 2009) -between job losses and financial hardship, it's unfortunately our final resort. We understand we couldve rebbuilt differently, but things happened and we are hard enough on ourselves, so please try and avoid any negative comments. Anyhow, we can't file until next April 2017, as that will be 8 years after our first filing. From the time we were discharged in2009 up until this month we open new credit line, never paid anything late, never any collections, etc. WE were even able to purchase a home 2 years ago. So after talking with the same attorney who helped up us in 2009, he suggested that eventhough we do need to wait until next Aptil, that we should stop making any payments now, except utilities and home payment. Next month will be the first month we are late on any of our card and personal loan in 7.5 years.

My question, do you guys think we will be able to survive until next April before we get sued by any of the credit card companies? I' unsure how long it takes after the initial default before they sell it off and we would get a judgement against us? I heard from posts it can take years before that happens, but there are different cases with everyone..

Has any one been in this situation and can give some insight? I know we will get hammered with calls and collection letters, but the main concern is not getting sued and a judgement against us before we file next April?

THanks so much.

Dan

[Anonymous]

At this point, why would you care if you get sued or get any judgements? The BK will wipe them all out in Ch7..

[dlynk196]

Hi there,

Thanks for the response - I'm worried because if I get sued between now and when I can file bankruptcy won't I be obligated to pay whatever the judgement is ? I'm trying to avoid any monies coming out between now and then seeing as we are trying to save for lawyer fee too.

Also, if a lien is placed on our home, are those removed when we file bankruptcy?

[Anonymous]

I'm not sure about the lien. I will let someone else answer that.  I wouldn'nt worry about a Judgement coming after you that quickly. Hell, I did a public court search on myself and just learned I had a Judgement for 14k issued against me 7 years ago. I moved out of State and had no idea.  Never once heard from anyone.. I called them and said I wanted to resolve it (with the CA), they said they would get back to me and I still have not heard anything. I'm sure I will and I want to because I want to clean it up. 

But back to you, nothing will even charge off for what 180 days? Thats six months. By the time they serve you any papers could be months from that. You notice I said COULD. There are no promises and everyone is different. But unlikely. You have to do what makes sense for you and your situation. Use everything people tell you here as a guideline. Do what your GUT tells you.

[Anonymous]

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@Anonymous wrote:

At this point, why would you care if you get sued or get any judgements? The BK will wipe them all out in Ch7..

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Yes, more than a year from now. In the meantime, judgments mean potential garnishments and asset seizures.

[Anonymous]

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@dlynk196 wrote:

Hi there,

Thanks for the response - I'm worried because if I get sued between now and when I can file bankruptcy won't I be obligated to pay whatever the judgement is ? I'm trying to avoid any monies coming out between now and then seeing as we are trying to save for lawyer fee too.

Also, if a lien is placed on our home, are those removed when we file bankruptcy?

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I will relate my experience - I lost my job at the end of 2012, and moved twice leaving a huge $1000 unpaid electric bill, a $3100 medical bill, a $1200 oral surgery bill, and a $500 dental bill. In 2014, seven years after filing for BK in 2007, all four of these creditors sued me, and garnished my wages. I have no doubt whatsoever that my BK "wearing off" in 2015 prompted these suits so soon after the debts went bad.

I would pay the minimums for as long as you can stretch them out while socking away the cash for a BK lawyer. As the other poster pointed out, it takes about 180 days for the cards to go to charge off, so I would try to get within 6 months of the BK timeline before letting everything go. That way when you do file the debts will only show lates and not charge offs. After the BK is discharged you will have better recovery.

[granny031350]

did your attorney talk to you about a chapter 13?   You can file that immediatey. It is a different kind of bk because you make payments to the court and the creditors will get something, although not knowing your situation, it could be as low as 10 percent.   If you can still afford to keep your house and your car, why not go with chapter 13.   That will stop all collections?     Just be CURRENT on your house and car if you can, although in 13 you can put all arrears into the plan.

[Anonymous]

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@granny031350 wrote:

did your attorney talk to you about a chapter 13?   You can file that immediatey. It is a different kind of bk because you make payments to the court and the creditors will get something, although not knowing your situation, it could be as low as 10 percent.   If you can still afford to keep your house and your car, why not go with chapter 13.   That will stop all collections?     Just be CURRENT on your house and car if you can, although in 13 you can put all arrears into the plan.

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You CAN keep your house and car under a BK 7 as well, provided you can make the payments.

[granny031350]

yes he can.  But he stated that he doesn't qualify for chapter 7 for another year and they are in trouble now.   A chapter 13 imo would be an answer for that situation.   But yes, he can reaffirm both in a chapter 7