I seriously dont know what to do...

[laylou]

Ive been researching bankruptcy for 3 years now..

With ever intention to file chap 7 but was going through loan modification on house that took forever. got that straight

went around to a few lawyers to realize im barely over the chap 7 mark.Which the lawyer i saw recommended just waiting it out, I gone strong 3 years with only one lawsuit but they are now coming after me with a motion for judgement on a 3500.00 card.

Im a single mom with a RN salary no assets but my sons car in my name which is a 2003 corolla.

I really dont know what to do...pay judgement and hope i don't hear anything else or go back and look at chapter 13 again.

thanks

[justbroke]

Try shopping a few more attorneys to see if you can squeeze into a Chapter 7. Remember, that the "median income" is not the determinative factor for a Chapter 7. It is your income less your allowed expenses. If any attorney just looked at your income and immediately said "no", then they were not doing you any favors.

I personally would not file over a $3,500 judgment (or even a $5,000 judgment), but you do need to take some actions to protect yourself. I'm assuming that you are on-time with your house payments? What is your true debt picture?

[laylou]

Thanks for responding..

I am probably 30k in debt with a repo involved.

Most last payments were around Jan 2010 so in Texas if that statues of limitations means much itll be up soon.

Im wondering if i take the payoff offer to the lawyers for American express for 70% of owed will that open the eyes of the other creditors to come at me.Also if i take the offer of paying 70% will that really stop judgement and court case be dropped.

I haven't had anything bad on my credit in years id hate to have that judgment.I owe chase around 18000 and haven't heard anything from them.The motion for traditional judgement has been filed.

How much time do you think i have?

thanks

[justbroke]

I am not sure how much time you have, especially since it is Texas. I believe that Texas doesn't allow garnishments, so the judgments could only be satisfied from property (real and personal). This may be why Chase has not pursued you any further. (Especially if you have no equity in your home.)

I am not an expert at collections and judgments. If you can stay collection-proof (not judgment proof since no one is really judgment proof) and wait out the statute of limitations, that could prove the best route. If you do obtain property (build equity in your home or a vehicle), that could become problematic with judgments (specifically judgment liens).

If you settle the lawsuit for $1,800 please be aware that it is likely that they will file an IRS Form 1099-C (Forgiveness of Debt) and yo may owe taxes on the amount forgiven. Either way, settlement or let it go to judgment, you have some decisions to make. Are they offering a payment plan for the $1,800 settlement? Can you truly handle paying that off?

[dmc-2008]

I would just add that I contemplated a bk in 2008 and didn't file until 2012, I would be done now if I didn't waste so much time!!! Good luck with your decision.

[laylou]

just wondering what made you finally file for bk dmc-2008?

[dmc-2008]

Layou I went back and forth and up and down. I contemplated ever angle. Finally I just realized it was never going away and I could not snowball my way out of it!

Then I also decided to do a lien strip and that sealed it. If this financial strategy works, it will really help me out to move forward and be financially stable!

Good luck, I know it's hard!

[laylou]

thanks for the info..did the credit card companies keep sueing you?

[AngelinaCat]

Usually the CC companies do NOT sue you. Some do, but most do not. It is usually some other major creditor with a secured debt that sues.

What CC are you worried about?

[AngelinaCat]

Laylou, I broke your post into paragraphs so that the long post is easier to read.

You will help everyone here to help you better if we are able to read your posts.

Thank you

[dmc-2008]

I never got sued. A bk would stop that process I think, but I am not sure. The experts here can answer that.

I am a single mom too and I worried bout my kid, but she is fine. I am able to cut corners and so far she is not affected. But it's a good thing that I can wear thrift clothes and seem to need less and less myself.

It's not impossible to live in a bk!

So far! Crossed fingers!