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Close to filing chapter 7 but...

empressj
Frequent Contributor

Close to filing chapter 7 but...

Hi, 

I'm worried sick as I need to file chapter 7 but have a personal injury case from car accident that happened early this year. We have stopped paying our credit card bills and personal loan as instructed by attorney. I recently had surgery which is related to accident. We wanted to file before the surgery but the attorney suggested we wait until after. Well now I'm out of work on disability and the calls, letter and certified letters are coming in and I'm worried sick. I done some research and have learned personal injury suits can tie up a case and if there's a settlement we may not get anything. How can this be after I've suffered with damage and now have a neuropathy condition that will affect me long term and it's quite painful. 

 

The attorney says we qualify for chapter 7 but the waiting is making me sick. I'm afraid when I return to work garnishments maybe pending, not exactly sure. 

Has anyone dealt with this??? I'm not trying to get over. I just want to reaffirm my car, we don't own a home and always pay the car note timely. I live in nj and have read mixed reviews, I'd appreciate any suggestions, insight something..please, thank you!

Discharged Jan 2017
Rebuilding credit
Message 1 of 11
10 REPLIES 10
debtbegone4ever
New Member

Re: Close to filing chapter 7 but...

We are in the same boat.  We are filing ch7 this week.  I also have a pending personal injury case from a car accident over a year ago.  I also have a permanent injury and can't work, which is what put us over the top for bankruptcy.  I tried waiting to file until the car wreck was settled, but now we are being sued by two different people, so we can't wait anymore.  From what I understand it can delay your personal injury case, but my attorney is telling me that I should be able to exempt some of it when it settles depending on the amount.  I realize that I could wind up with nothing from the settlement, but at this point, getting our debts discharged and protecting my family against a law suit has become more important.  I wish I could give you answers, but I still don't have all of them myself.  Hang in there!

Message 2 of 11
empressj
Frequent Contributor

Re: Close to filing chapter 7 but...

Thank you for the response. The whole process it nerve wrecking. I just want a fresh start, that good enough for me. I just spoke with my attorney and that's the same thing he mentioned that we may be able to exempt some of it depending on the settlement. We live in NJ and have state or federal exemption . Not sure what all that means though. I'd at least like to get things initiated with the bk. We haven't started the suit as I'm still recovering. My heart is aching bc my life has been greatly impacted and there is no guarantee I'll be the same since dealing with this neuropathy issue. Best wishes to you and you hang in there  too! 

Discharged Jan 2017
Rebuilding credit
Message 3 of 11
empressj
Frequent Contributor

Re: Close to filing chapter 7 but...

It just makes me sad that I'll have to take some sort of loss (exemption) because of a PI case. Not looking at how my life has been and will continue to be impacted by this long term debilitating condition which is quite painful. I've always worked and never looking for handouts, that all I know. I worry about this exemption, the bankruptcy and most important my health. Never ending story...

Discharged Jan 2017
Rebuilding credit
Message 4 of 11
philannony
Contributor

Re: Close to filing chapter 7 but...


@empressj wrote:

We live in NJ and have state or federal exemption . Not sure what all that means though.


This means you get to chose which exemptions you use. NJ state has one list of exemptions and Federal has another. You do not get both, and you can not pick and chose individual items on the exemption lists you choise all NJ state or all Federal.  If you google NJ state exemptions and Federal exemptions you will find many websites detailing the lists.

 

Also I'm not sure about the PI settlement your attorney would know best but I had a thought. Would BK13 be out of the question ? If you can make payments, and eventually your PI settlement is enough to cover everything you can pay it off and keep the remainder of the settlement ? Not sure, but something worth asking if your settlement will be much larger then the debt you currently owe.

 

~Phil

 

Message 5 of 11
harleygirl1987
Frequent Contributor

Re: Close to filing chapter 7 but...

With regards to garnishements, I'm a debt collector and have been for almost 12 years. I've collected on it all. Credit card and medical debt moves slowly through the collection process at the original creditor before it's sent to collections. Generally with credit cards they're kept on the books for about 6 months then they will get charged off, and then there's a waiting time before the company sends it to collections. Same with medical debt. You'll know it's been sent to collections when you get a notice from the collection agency. They have to give you 30 days to dispute the validity of the debt before they can do anything. I wouldn't ignore the calls I would just let them know you can't pay and don't give them any personal info or banking info etc.. don't verify anything for them besides maybe your ss and address. It takes time to get the papers filed to sue you, and you'll get served by a process server for the debt. You have (in Oregon) 14 days for small claims, or 30 days for circuit court before they can request a judgment against you. At that point you are elligible for garnishment after a judgment is obtained. So it's a process. It's not like it's going to happen tomorrow. Just keep an eye out on your mail etc, and if you get some weirdo showing up at your house serving you or anyone else in your home papers, then you know the time is near and you need to work quickly.

If you do have an attorney that's retained, make sure you let every creditor know it will stop the calls/letters. If they don't then they can get fined 1k per occurance. If you filed banko, you're covered since no one can do anything in the bankruptcy stay period. Basically you'll be fine, don't worry just don't ignore them and watch your mail so you know what step in the process they're in.




 

 

Ch7 BK filed 7/5/16, DC 10/12/16
Message 6 of 11
empressj
Frequent Contributor

Re: Close to filing chapter 7 but...

Thank you! I appreciate the information
Discharged Jan 2017
Rebuilding credit
Message 7 of 11
Scupra
Super Contributor

Re: Close to filing chapter 7 but...

Great info Harleygirl, thank you!
Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
759 EQ FICO 03/2021
754 TU FICO 03/2021
743 EX FICO 03/2021
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Message 8 of 11
harleygirl1987
Frequent Contributor

Re: Close to filing chapter 7 but...

Yeah no problem. If you've got any collection questions send em my way. I love helping people with their collection issues etc. Like I said I've done it all, and worked a lot with Credit Unions including PenFed. My brain is full of financial info lol.
Ch7 BK filed 7/5/16, DC 10/12/16
Message 9 of 11
darrjac
New Visitor

Re: Close to filing chapter 7 but...

we did chapter 7 about in 2011 and were discharged march 2012. we havent been able to get a home. our credit is alright but the BK and then Foreclosure have made it hard.

Message 10 of 11
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