Totally new and lost!

[meesch7428]

Hi,
I bought a car 11 years ago turned it in that same year I gave it back I realized I could not afford it. I joined Genus Credit management paid back the principle of the car. LHR contacted me in 2004 stating I owed the interest I made 1 payment to them and never again on Oct 28, 2004. The SOL has run out but my lawyer says I have no proof only the amount being taken out of my bank account as I used my debit card. He said that might not be enough for the judge. So I have been contacted on 4-28 that I am being sued civil lawsuit from the said company. I paid 6995.00 for the car it was sold for 3400.00 so I paid the principle the company is coming after me for 10330.00 in interest. It was 25% INTEREST I was only 21 had no idea what all that meant....I should not have been buying the car on my own.
My lawyer said I should just file Chapter 7 these people are not willing to negotiate they said they would take a 1 time payment of 9800.00 or the balance of 10330.00 paid in 200.00 a month for basically the next 7 or so years. I am not willing to do that.
So here are my questions:
1. If they do get the judgement does that go on the BK too? I am due in court on 9-24
2. Does the BK lawyer make payment plans? I have no clue how to come up with 1200 in the next few days to retain him.
3. Once he is retained can they still take me to court for the judgement?
4. I only have 19K on my credit report 5K is a student loan 8K is my car which I am not putting in the BK so 6K in credit cards and hospital bills.
Would you take the chance and force your lawyer to fight for the SOL with the statement from the bank that was the last payment I made to the LHR company?
5. My husband doesn't have to be included in the bankruptcy right?
6. The mortgage is in my husbands name the deed is in both our names will this affect our house or his ability to refinance the house?
7. 1 lawyer told me that my BK would be attached to my husband what does that mean will he have issues getting credit because of me?
8. Should we purchase a new vehicle before I do the BK we need a new minivan as we had a new baby in July and with 4 kids his altima is not fitting everyone.
9. When I do the BK it will stop everyone from calling I send them onto my attorney is that correct?
10. Is it true in 2 years after discharge I can start to rebuild my credit?
11. What types of classes do I have to take for the BK I was told I have to take classes.
12. How soon is all this done? If I contacted my attorney today and retained him today how long before it is done would it be before my Sept 24 court date?

Thanks so much!
Michelle

[keepmine]

First things first. Make a fight out of the SOL issue. If you lose, the judgment will be discharged in bk.
You have to take a credit counseling class approved by the bk court in your district. Your lawyer will set that up. As to payment plans, many will-just ask him his policy.
As to the house, what state you reside in and the equity in the house will determine if there are any problems.
Yes, get transportation needs arranged prior to filing. Your lawyer can file a "skeleton petition" with just your identifying info and the the list of creditors. That will halt all collection activity. He has 15 days to file the balance of the petition.
Botom line, don't play the bk card just yet but, prepare just in case. Defend the lawsuit-you may win.At the same time, take the counseling course, get the car bought . The course is cheap and you'll need the car anyway and then, see what happens with the lawsuit.

[soleprop]

So here are my questions:
1. If they do get the judgement does that go on the BK too? I am due in court on 9-24
2. Does the BK lawyer make payment plans? I have no clue how to come up with 1200 in the next few days to retain him.
3. Once he is retained can they still take me to court for the judgement?
4. I only have 19K on my credit report 5K is a student loan 8K is my car which I am not putting in the BK so 6K in credit cards and hospital bills.
Would you take the chance and force your lawyer to fight for the SOL with the statement from the bank that was the last payment I made to the LHR company?
5. My husband doesn't have to be included in the bankruptcy right?
6. The mortgage is in my husbands name the deed is in both our names will this affect our house or his ability to refinance the house?
7. 1 lawyer told me that my BK would be attached to my husband what does that mean will he have issues getting credit because of me?
8. Should we purchase a new vehicle before I do the BK we need a new minivan as we had a new baby in July and with 4 kids his altima is not fitting everyone.
9. When I do the BK it will stop everyone from calling I send them onto my attorney is that correct?
10. Is it true in 2 years after discharge I can start to rebuild my credit?
11. What types of classes do I have to take for the BK I was told I have to take classes.
12. How soon is all this done? If I contacted my attorney today and retained him today how long before it is done would it be before my Sept 24 court date?

1. Yes the judgement will be included in your BK and is considered dischargeable debt.
2. Depends on the BK attorney, ask him/her. All require payment prior to working on a CH7 case though, at least every one I've heard about so far.
3. Yes, the creditor can continue litigation against you until you actually FILE your BK.
4. EVERYTHING goes in your BK, whether or not it is dischargeable, the BK is intended to be an accurate accounting of your total estate and state of financial affairs.
5. Right, your hubby does not have to file with you. But his income is considered as BK wants to know household income.
6. I don't know.
7. Depends on the laws in your state.
8. Some say you should, I think it's reasonable; however I didn't.
9. Yes, they stop calling (or you can sue them for each violation).
10. No, you can start rebuilding your credit immediately after filing - first by cleaning up your credit reports and establishing a livable, realistic budget, next by establishing safe and minimal limit credit lines. 2 years after discharge you cannot be denied a certain form of government sponsored mortgage - i'm not an expert on this but i think this is where you got the 2 year thing from.
11. Classes: one within 6 months prior to your file date, one after you file (there's a timeline on this one too but it escapes me). They can be in person, online, or over the phone. There are trustee-approved courses, make sure these are the ones you use to fulfill the obligation.
12. How long? usually 3-4 months total from date of file for a non asset CH7 to be discharged/closed. Depends on the case though.

[ThreadsSnapping]

Don't file BK just yet. Let the lawsuit play itself out and make them prove to a judge that this debt is in fact yours. It's been 11 years and I would doubt that they have any proof anymore and will drop it or be dismissed due to lack of proof. They know that when they file a lawsuit that most people will get scared and pay them or make payment arangements. Do not bring up the payment, let them do that. Don't deny or agree to anything they say, just tell them that you don't remember. How many people do after 11 years. I forget what I did yesterday a lot of the times.

They are suing you. They need to provide the proof that you do indeed owe the debt. And you are right the SOL has probably run out.

What state are you in? Is it the same state you bought the car in? When you made the payment in 2004?

TS

[BROKENN]

I had the same thing happen to me. Served and all. The debt was for $4K and by the time they got the numbers set for my filed judgement it was $12K. Couldn't believe it.

Because I was going to file I wasn't that upset (as the rest of the world was coming after us also, so what was one more?) and faxed it to my lawyer.

But interestingly, since, they haven't budged. And a few weeks later I got another negotiation offer letter from them!

I agree, they just want to see if you will pay.

One company sent a guy to my house and he yelled at my DH that they were "going to take it all"! My DH was nervous, I started catching on to the tactics and we waited. Nothing for the last 8 months.

I am glad that BK protection is available when on the other side the companies can harrass and chump up the balances. I am so glad this will be over soon..... and it is hard too. Especially during.
Hang in there Keep up with it !