Hey all. This will probably be long, so I'm apologizing in advance!
Long story short, I have approximately $18,000 in credit card and medical debt (the bulk of it is from credit cards). I received notice yesterday that one of the credit card companies is suing me and I have 30 days to respond.
I spent most of the day yesterday having consultations with bankruptcy attorneys (one in person, a couple over the phone, and one via email). I'm really curious what I need to do here.
A little background information about me: This debt is MINE only...my husband actually has good credit and pays his bills on time. I started out like gangbusters making regular payments on all my cards, but it got ahead of me and I slipped, then got to the point where even after making my minimum payments, I was still over the limit. I guess this doesn't really matter though, does it? lol So anyway, I do not work and have zero income of my own. I also have no assets (my husband's name is the only one on both the mortgage and both car loans). I own no real estate, stocks, retirement accounts, or anything else of value. The only thing we have in common (for lack of a better term) is a joint checking account.
We're a one-income family (he works and I'm a homemaker). We have three kids, and my husband's income is approximately $55,000 a year. Basically, things are TIGHT. We get buy and have no problems paying our regular bills (mortgage, utilities, etc.) but there is almost nothing leftover at the end of each month. We also do not have a savings account.
What I'm wondering is, what exactly can/will happen if I choose to ignore this lawsuit from the credit card company? They can't garnish my husband's wages or seize or tax refund, can they? Even though I don't work, and haven't since the birth of our third child, we still file our taxes jointly. Since $55,000 a year for a family of five doesn't go far, we depend on our tax refund each year to live on.
So if I choose to ignore this lawsuit and don't hire an attorney to file Chapter 7, what's the worst that can happen? What's the best possible outcome? In a way, it would be fantastic to be able to file and just get rid of all the collection calls, letters and this lawsuit (and if this one company is suing me, I imagine any of the other ones might do the same in the future). But on the other hand, I'm having a VERY difficult time finding an attorney who will get the process started without full payment. They've all said something to the tune of "You can make regular payments over a period of time, and as soon as my fee and the court fees are paid in full, I'll file your bankruptcy." Well if it takes me 6 months to scrape up $2,000 to file, the lawsuit will be over by then, they'll have their judgment, and I could quite possibly have a horrible mess on my hands with a frozen checking account, or any other number of things that might happen as a result of this lawsuit. Of course I totally understand why they want money up front...if I can't pay my bills and am being sued, who's to say that I won't refuse to pay them. I get it, I really do, but if I had several thousand dollars lying around, I probably wouldn't be in the mess I am right now!
Any and all advice is welcome and appreciated!
Long story short, I have approximately $18,000 in credit card and medical debt (the bulk of it is from credit cards). I received notice yesterday that one of the credit card companies is suing me and I have 30 days to respond.
I spent most of the day yesterday having consultations with bankruptcy attorneys (one in person, a couple over the phone, and one via email). I'm really curious what I need to do here.
A little background information about me: This debt is MINE only...my husband actually has good credit and pays his bills on time. I started out like gangbusters making regular payments on all my cards, but it got ahead of me and I slipped, then got to the point where even after making my minimum payments, I was still over the limit. I guess this doesn't really matter though, does it? lol So anyway, I do not work and have zero income of my own. I also have no assets (my husband's name is the only one on both the mortgage and both car loans). I own no real estate, stocks, retirement accounts, or anything else of value. The only thing we have in common (for lack of a better term) is a joint checking account.
We're a one-income family (he works and I'm a homemaker). We have three kids, and my husband's income is approximately $55,000 a year. Basically, things are TIGHT. We get buy and have no problems paying our regular bills (mortgage, utilities, etc.) but there is almost nothing leftover at the end of each month. We also do not have a savings account.
What I'm wondering is, what exactly can/will happen if I choose to ignore this lawsuit from the credit card company? They can't garnish my husband's wages or seize or tax refund, can they? Even though I don't work, and haven't since the birth of our third child, we still file our taxes jointly. Since $55,000 a year for a family of five doesn't go far, we depend on our tax refund each year to live on.
So if I choose to ignore this lawsuit and don't hire an attorney to file Chapter 7, what's the worst that can happen? What's the best possible outcome? In a way, it would be fantastic to be able to file and just get rid of all the collection calls, letters and this lawsuit (and if this one company is suing me, I imagine any of the other ones might do the same in the future). But on the other hand, I'm having a VERY difficult time finding an attorney who will get the process started without full payment. They've all said something to the tune of "You can make regular payments over a period of time, and as soon as my fee and the court fees are paid in full, I'll file your bankruptcy." Well if it takes me 6 months to scrape up $2,000 to file, the lawsuit will be over by then, they'll have their judgment, and I could quite possibly have a horrible mess on my hands with a frozen checking account, or any other number of things that might happen as a result of this lawsuit. Of course I totally understand why they want money up front...if I can't pay my bills and am being sued, who's to say that I won't refuse to pay them. I get it, I really do, but if I had several thousand dollars lying around, I probably wouldn't be in the mess I am right now!
Any and all advice is welcome and appreciated!
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