My anxiety is kicking in and I am really starting to worry. I stopped paying my unsecured debts two months ago and it is now hitting my credit reports. I can’t file until mid-November and I am starting to panic that I am going to be sued. That, and my home value keeps creeping up so I am afraid that the trustee will force me to sell my home.
Is there a realistic timeline when it comes to creditors filing suit? If someone filed suit next month, I know that they need to serve me and that I have 21/28 days to file an answer. Then, I have another month or so before anything really happens. If they get a judgment, I believe they have 21/28 days before it is final and can begin garnishing my bank account or payroll. So, that gets me about four months, which isn’t enough time.
As for my house, I currently owe $160K. I paid $171K for it two years ago. Based on comparable home sales within the last few months, my house would most likely sell for around $200-$210K. The housing market in my city and neighborhood is on fire. There is almost no inventory, lots of cash buyers and houses are going for way more than asking price. Because of this and low mortgage rates, home values are expected to continue increasing. When I initially talked with my attorney a couple months ago, he said not to worry and that the trustee doesn’t want my house. I am not so sure about that.
I can’t file until November for two reasons: 1) In November, 2019, I took an early withdrawal from my 401k to pay my boyfriend’s divorce property settlement to his exwife so that he and his kids didn’t lose their home. So, if I wait until November, 2021 to file, I can get past the two-year disclosure period on the paperwork; and 2) My income has been declining since March, 2020 and by then, my income will be under median so I will have no means test issues.
I am a planner and proactive by nature. The unknown that will come in the next 6-9 months is causing me so much anxiety and my mind has been racing. I welcome any input on these two issues that are stressing me out so much.
Is there a realistic timeline when it comes to creditors filing suit? If someone filed suit next month, I know that they need to serve me and that I have 21/28 days to file an answer. Then, I have another month or so before anything really happens. If they get a judgment, I believe they have 21/28 days before it is final and can begin garnishing my bank account or payroll. So, that gets me about four months, which isn’t enough time.
As for my house, I currently owe $160K. I paid $171K for it two years ago. Based on comparable home sales within the last few months, my house would most likely sell for around $200-$210K. The housing market in my city and neighborhood is on fire. There is almost no inventory, lots of cash buyers and houses are going for way more than asking price. Because of this and low mortgage rates, home values are expected to continue increasing. When I initially talked with my attorney a couple months ago, he said not to worry and that the trustee doesn’t want my house. I am not so sure about that.
I can’t file until November for two reasons: 1) In November, 2019, I took an early withdrawal from my 401k to pay my boyfriend’s divorce property settlement to his exwife so that he and his kids didn’t lose their home. So, if I wait until November, 2021 to file, I can get past the two-year disclosure period on the paperwork; and 2) My income has been declining since March, 2020 and by then, my income will be under median so I will have no means test issues.
I am a planner and proactive by nature. The unknown that will come in the next 6-9 months is causing me so much anxiety and my mind has been racing. I welcome any input on these two issues that are stressing me out so much.
Bankruptcy Wizard
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