I'm almost a year past letting my bills go because of unemployment. Most everything has been sold to collection agencies and charged off. However, I was served paperwork yesterday from Discover, through the courts in my city.
I haven't filed bankruptcy because I don't have the money and haven't found an attorney that would work out a deal with me concerning the fees.
Do I have any options to fight this? It says I have 30 days to respond to Discover's attorney. I'm not even sure which date to respond to. It was served yesterday, but the date is from about 10 days ago. So I figure I have about 20 days to respond. I have no job and no money, I can't even work out a deal because I have no means.
You should do some more calling around and see if anyone can work with you with regards to fees, or possibly find an attorney that works more with volume then their fees will be lower. You'll need to also be ready to pay the trustee fees in addition. If you aren't working, then really there isnt anything that Discover can go after. Most likely they are suing you on the balance, in hopes that one day they'll be able to attach an asset or they "think" they have something on you. Bank account, POE, property (home, paid off car) they can attach to pay off your debt. However, like I said if you truly have nothing then don't stress about it. If they have a bank account on you, and you have unemployment compensation going into it, and you can show that's what it is, then it's exmept funds. However, if you put in other funds or take out cash, and re deposit it later then it's co-mingled and garnishable.
In regards to "fighting it" there isn't anything you can do to fight it. A judge isn't going to tell Discover since you can't pay they aren't going to grant a judgment against you. Your 30 days starts from the date you were served to file a motion with the court if you wanted. However, that costs money to file a response and if you don't have it then it's not worth filing anything, since as I stated a judge isn't going to stop it due to your current situation. Just let it go to judgment, try finding a job asap and get money together to file BK. Don't pay the creditor since it will restart the statute of limitations on the debts, if you do talk with them just tell them you aren't working and there isn't anything you can do.
You will likely have a better chance going to a non-profit organization like Legal Aid and asking them to help you prepare your bankruptcy petition.
As stated previously though, you are most likely judgement proof. That means that if Discover gets a judgement, they won't be able to do much with it if you have no assets or income.
You probably don't want to file bankruptcy until you start working. It would be beyond unfortunate if you find a way to file now (e.g. with the help of Legal Aid or by filing on your own), get a discharge , and then incur a large medical expense after discharge. Instead, wait until your finances are back together, you have health insurance, etc.
If it makes sense to file at that time, then make the decision to file.
When I filed Chapter 7 BK in 2014, I held the initial discussions with my attorney in February, but we agreed that I should wait a few months because I was receiving monthly payments from the settlement on the FDCPA action I filed against a debt collector in 2012 (as well as income from limited part-time employment plus SSDI), so I waited until the last settlement check came in in June before filing the following month. It was also a factor that I stopped working the same month due to my employer's running into severe contract problems that ultimately led to them having to file BK and getting bought out by another company, so when I actually pulled the trigger on BK at the start of August my only income was from SSDI.
Look at your agreement or find it on line. I'm pretty sure it has an arbitration agreement.
How much do you owe ?