Being Sued before Filing

[blb2397]

I am planning on filing Chapter 7 but was hit with a lawsuit from a collection account for a CC a week ago. I have 35 days to respond (NJ) and they have my work info. Even though I will be filing it wont be for at least six weeks so I can save up for the fees. I worry about a judgement and garnishment in the meantime. Should I make arrangements and or tell them I will be filing (especially if I retain a lawyer) before? How should I proceed with this? I have no assets outside of a 2002 Civic EX and my paycheck.
Thanks for any help

[backtoschool]

I would respond to the letter with a request to validate the debt to buy yourself some time. That should give you around 30 days or so, and then some more time to respond to whatever they send you, which should give you the six weeks you need.

If for some reason, you can't drag out a response for six weeks with a debt validation, even if they sue you, once you file for bankruptcy, your lawyer can have the lawsuit dismissed. If they get a judgment before you file, then you can have the judgment vacated after you are discharged. (You have to fill out paperwork with the court the judgment is with, showing your discharge and the judgment will be vacated).

[blb2397]

Wow Thanks
These are papers filed in the court which I thought meant I couldn't ask to validate? If they get judgment how long for garnishment is normal, because if the garnish me it would be money gone and take longer to save to file even if I can vacate later.

[music12]

you won't be asking to validate the way you would if they had just sent you a collection letter. you would instead file an answer with the court within 35 days denying that you owe anything. that puts the burden of proof on them and should take a few weeks for sure, because technically it necessitates a trial with proofs. if you are going to take more than 6 weeks to file, i would make sure that my bank account has very little money at all times, so if they freeze it you are still ok. garnishing wages takes a bit longer than trying to freeze a bank account (because your employer would hopefully be slow about it). ask your lawyer, maybe they have better techniques for dealing with these things.

[frogger]

Make sure that you don't just roll over and not participate in the court process either. If you don't show, you will most likely automatically lose.

If you want to stall, you can most likely call the court a few days before the court date and reschedule if you have some kind of legitimate conflict. You can get away with rescheduling once, maybe twice, so you can buy some more time there too.

[AngelinaCatHub]

you won't be asking to validate the way you would if they had just sent you a collection letter. you would instead file an answer with the court within 35 days denying that you owe anything. that puts the burden of proof on them and should take a few weeks for sure, because technically it necessitates a trial with proofs. if you are going to take more than 6 weeks to file, i would make sure that my bank account has very little money at all times, so if they freeze it you are still ok. garnishing wages takes a bit longer than trying to freeze a bank account (because your employer would hopefully be slow about it). ask your lawyer, maybe they have better techniques for dealing with these things.

This and 'backtoschool' (and others) is good advice. BE SURE to respond. Do this in the latest time slot practical, as they have 20 to 30 days to respond to your response. You really don't want a Judgment with all the little problems that it can cause. Just as soon as you get your docket number, the suit will be "tolled" (automatic stay) until the results of your bk.

If you are discharged, the suit will be (unless they fight with an AP), if you are dismissed for any reason, the suit will then be released for process. 'Hub