Could use some advice..

[indigocat86]

Hi everyone,

Have been reading this forum for a little while now, though this is my first time posting. I could really use some advice from others who have been through this before:

I am in the process of filing for a Chapter 7 bankruptcy. I am leaning towards filing pro se, as I honestly do not have the money right now for an actual firm (I'm a full time student at the moment) and want to file sooner rather than later, as I have a judgment against me (got sued for one of my credit cards and lost on summary judgment ). The judgment was entered against me in another state, where I have not lived for close to a year now. I'm currently in a state where the judgment creditor would have to essentially re-file the suit to bind me to the judgment (was told this by several of the attornies I have consulted with; thank goodness for free consultatons!).

But what I could use some advice on is this: The other day, I received a letter from the law firm of the creditor who got the judgment against me. It was a notice of the judgment (though I of course already knew about it). They encouraged me to contact them to "see if we can reach a mutually agreeable solution" before the "judgment creditor asserted its rights". I know about 99.9% that I want to file for bankruptcy--I just have too much debt for my financial situation and by the time I could even start, when I get out of school, seriously paying it back, I could be sued many more times over.. ). However, I am not sure when I will actually get to file (have to save the funds). Should I contact them and let them know my intent to file or should I just wait as I am in a state where they cannot really enforce the judgment they have against me anyway? I just do not want them to try to sneak something through in the time between now and when I get to file.

Also, has anyone used one of those "file with us for $125" and similar type places to file their bankruptcy? I'm considering using one of those sites, though I of course want to make sure it's all legit..

Sorry this is so long! But I would really appreciate any and all advice anyone here could give.

Glad I am not alone in this!


--indigocat86

[drowning123]

Unfortunately, intent to file does not equal automatic stay, so calling them and telling them that you intend to file doesn't stop or slow down anything. Do you have any wages or bank accounts that can be garnished? If not, I wouldn't worry too much about the judgment. Focus on filing.

[helpme2010]

I have represented myself in court, including in a 3 year lawsuit a corporation filed against me. And I won. But I will tell you the money I paid for my attorney $1,200 + filing fee, was the smartest and most stress-fee investment I could ever make. He has paid himself off several times over in my opinion. If you have no other choice, then keep posting your questions and read this board religiously (I do this in addition to having an attorney).

Judges and trustees do not pity those that can't afford attorneys. They often get mad at them, especially for any mistakes you make. And ignorance is no excuse in the eyes of a court.

[indigocat86]

Unfortunately, intent to file does not equal automatic stay. so calling them and telling them that you intend to file doesn't stop or slow down anything. Do you have any wages or bank accounts that can be garnished? If not, I wouldn't worry too much about the judgment. Focus on filing.

Hi, thanks for the insight! I have no wages or assets other than my bank account but according to the attornies I've consulted with at least, I am more or less judgment proof, based on my income source, the laws of the state, etc. But I quite frankly do not trust this creditor (or any creditor really, lol) based on other experiences I have had during the collections phase of this so I just want to cover all my bases, you know?

[indigocat86]

I have represented myself in court, including in a 3 year lawsuit a corporation filed against me. And I won. But I will tell you the money I paid for my attorney $1,200 + filing fee, was the smartest and most stress-fee investment I could ever make. He has paid himself off several times over in my opinion. If you have no other choice, then keep posting your questions and read this board religiously (I do this in addition to having an attorney).

Judges and trustees do not pity those that can't afford attorneys. They often get mad at them, especially for any mistakes you make. And ignorance is no excuse in the eyes of a court.

Hi, thanks for weighing in! Thankful that I found this place.

Anyone ever file pro se with one of those discount websites that are out there? If so, how was/is your experience? Did you have trouble or did things go smoothly?

[tcreegan]

Hi indigocat,

Also, has anyone used one of those "file with us for $125" and similar type places to file their bankruptcy? ...they just prepare the forms you can easily fill out yourself. You have to collect the information that is going to be used, they are not liable if the filing gets screwed up, don't waste your money.

Get the NOLO book instead; www.nolo.com This is a step-by-step guide to filing a BK, put your (much smaller amount of) money here.

The letter from the "creditors law firm" is most likely from a debt-collection outfit that has an attorney as a figurehead. What you posted is standard boilerplate collection lines; best course would be to look up Fair Debt Collection Practices Act and see what they can/cannot do and how you can respond to get them off your back. Don't tell them you are going to pay, don't tell them you are going to file BK, these both have a possibilty of legal ramifications. I wouldn't worry about it too much, like you mentioned in your post, MA has some pretty stiff consumer protection laws.

As long as I am rambling on here, thought I would mention a couple other things...
BK filing fees can be paid in installments or waived for low income people.
You will file in MA, but if you haven't been there 2 yrs yet, you will use your old states "exemption" rules.
MA BK court has clinics for people filing pro-se (by yourself) and they have a great website, lots of good info! http://www.mab.uscourts.gov/mab/

Welcome aboard and keep posting, lots of good folks around here to help you out!!

Tom in Colo

[biotechsolution]

If you're still in school. How much debt are we talking about?

[indigocat86]

Hi indigocat,

Also, has anyone used one of those "file with us for $125" and similar type places to file their bankruptcy? ...they just prepare the forms you can easily fill out yourself. You have to collect the information that is going to be used, they are not liable if the filing gets screwed up, don't waste your money.

Get the NOLO book instead; This is a step-by-step guide to filing a BK, put your (much smaller amount of) money here.

The letter from the "creditors law firm" is most likely from a debt-collection outfit that has an attorney as a figurehead. What you posted is standard boilerplate collection lines; best course would be to look up Fair Debt Collection Practices Act and see what they can/cannot do and how you can respond to get them off your back. Don't tell them you are going to pay, don't tell them you are going to file BK, these both have a possibilty of legal ramifications. I wouldn't worry about it too much, like you mentioned in your post, MA has some pretty stiff consumer protection laws.

As long as I am rambling on here, thought I would mention a couple other things...
BK filing fees can be paid in installments or waived for low income people.
You will file in MA, but if you haven't been there 2 yrs yet, you will use your old states "exemption" rules.
MA BK court has clinics for people filing pro-se (by yourself) and they have a great website, lots of good info!

Welcome aboard and keep posting, lots of good folks around here to help you out!!

Tom in Colo

Thank you so much for this information, Tom! Very useful, especially the info on the clinic here in Mass! Will definitely look into that. Good to know I also have the option of installments and even a waiver (I think I could qualify, considering my financial standing at the moment). Is this like legal aid? Will look into the NOLO book as well. My budget is really tight at the moment (as I'm sure anyone who has been through college and/or grad school, where I'm at now, can understand lol) so I want to make sure I take the most cost effective (if there must be a cost at all) and useful route. Thank you for helping me to do that with this info!

Yes, I think the firm of the creditor who sued/got the judgment against me is basically a glorified debt collections firm, which is why I don't trust them. I don't think I will contact them at all in the meanwhile between me filing as I understand once you file, all your creditors will receive notice then? Thanks for confirming my intuition on that.

Really glad I found this place! You can bet I will be visiting/posting often.

[indigocat86]

If you're still in school. How much debt are we talking about?

Well the judgment is for a little over 2 grand but I have close to $7,000 in overall debt. Which I know is not a whole lot, but in my current financial situation it is and my poor credit as a result of it has made it very difficult for me in a lot of ways (getting extra funding for school for one..). I know bankruptcy damages credit too but from what I understand it can eventually improve it? I've made some poor financial decisions in the past but feel I have learned a lot and want a fresh start.

[researchnerd]

If you have only $7k in total debt and you're judgement-proof, I'd recommend that you seriously reconsider filing BK at all. If your creditors can't file judgments, attach your pay, or put a lien on your property, they're pretty much in a holding pattern until you decide to pay them or settle with them for a percentage of what you owe -- which is something you should look into. Can you hold off the collectors until after you graduate and start working fulltime? Is it possible that you'd be able to pay back some of your debt at that point? Do you have everything you need to survive until then...such as a place to live and transportation?

BK should be considered an absolute last resort. I truly understand your desire for a fresh start, but if you file BK now, you can't do it again for 7 years. Think about all the things that could happen in that time...what if (gods forbid) you get sick or injured and have massive medical bills?

In any case, do *not* tell the collector vultures that you're thinking of filing BK. Not only will it not stall them, it may actually accelerate their collection efforts.