Sheriff was at our door this morning!!

[kcfaninin]

Hi,
We were in a Chapt 13 for 18 months and couldn't afford the plan payments due to a decrease in income. Our attorney at the time said she could only decrease our payments by $100 a month. Anyway, we got a second opinion and retained a new lawyer. Stated we definately qualify for a Chapter 7. He dismissed our Chapter 13 in June, recommended we quit our 4 part-time jobs (we had 2 extra jobs between the 2 of us) and file for a Chapter 7 after showing 6 months of decrease in income.

So, a sheriff shows up at our door today with a summons to appear in court. The creditor is from a small loan company that we borrowed $1500 from back in 2007 (no collateral) This is a creditor that hounded us until we filed for the Chapt 13. Funny thing is, they didn't even file a claim during the 13. They weren't too worried about getting their money back then. Question is, what happens next? Can they make us pay the full $2300 (interest & attorney fees) we owe at one time, or will we have to make payments until we file for a Chapter 7 in October? Or, will the court see we can't afford to pay anything except our mortgage, cars and living expenses? What responibility does our attorney have in this situation?

Thanks

[tinfoilhat]

they didn't even file a claim during the 13. They weren't too worried about getting their money back then.

In a bankruptcy you need to list all of your creditors (people you owe money to) So whether or not they are making claims at the time of your bk, they eventually will if you're not paying. So list them this time and wipe them out of your life, and don't forget anyone this time.

[kcfaninin]

We DID list them as a creditor in our Chapt 13. They are the ones who didn't file a claim. We are going to list them again once we file the Chapter 7, but what do we do with them in the next 60 days. Not to mention all the other summons we might receive. Our Chapter 13 was discharged in June 2009 so non of our creditors have been paid since then, except car and mortgage. Our attorney told us not to answer the phone, but it's a different story when the sheriff shows up at your door!!

[albacore44]

We DID list them as a creditor in our Chapt 13. They are the ones who didn't file a claim. We are going to list them again once we file the Chapter 7, but what do we do with them in the next 60 days. Not to mention all the other summons we might receive. Our Chapter 13 was discharged in June 2009 so non of our creditors have been paid since then, except car and mortgage. Our attorney told us not to answer the phone, but it's a different story when the sheriff shows up at your door!!

if you are filing in October it is unlikely they will be able to collect anything from you . The courts are backed up in most states. What hearing date is on the summons ?? Just make sure you file in October, and notify your attorney of the summons. Also, you might want to scan the postings on the collections forum here, lots of good information address this type of situation

[kenshirley]

And don't ignore that summons either. If you have to go to court to satisfy that do so.
If you don't they can attach income in many cases depending on your laws.
Talk to your new attorney about this.

[whipster1]

tinfoil: In a 13 the creditor has to file a claim to get paid...that is what the OP was talking about.

kc: Just file a simple response to the lawsuit... Even if they get all the way to a Judgment they still have to find assets.

You can use the fact that the creditor filed no claim in your 13 to say you owe them nothing...that would be interesting to see how they respond.

[kcfaninin]

There is not a hearing date posted on the summons. It just states that we are being sued by the person named above and that we, or our attorney have 20 days to respond in writing, or judgement may be entered against us for what the plantiff has demanded. It also states that if we have a claim for relief against the plantiff arising from the same transaction, we must assert it in our written answer. What exactly are they wanting in writing? Should we tell them we are filing in October?

[klandsb]

I had a sheriff come to my door about 3 wks ago...I think there is a thread in chapter 7 forum concerning this and I posted my response... I just got new papers today in response to my response and I now have another 30 days to respond to those...SO hopefully I bought myself enough time to file.... Its either in general bk talk or chapter 7...Sorry but look around in those 2...
Dont ignore it... Take something in response to the prothonotary at the courthouse to buy yourself some more time and hopefully no judgement w/be filed agains you..They will garnish your wages or sell your assets if they want too...At least in PA

[klandsb]

Yes , its under general talk.... on the first page