Starting Ch 7 and Have Some Questions

[zactak]

Hey everyone!

I'm new to the forums. I've been surfing the forums for a day or so now and been researching bankruptcy on other sites for a while. I'm currently in the process of searching for an attorney to file for chapter 7. Searching other sites and this forum has made me think of some questions I'd like to ask.

I feel like I'm in sort of an urgent situation to get my bankruptcy filed. I've been sued three times in less than four months. All my judgments have been default judgments. I suffer from agoraphobia - the fear of not being able to escape, and so going to court was really not an option for me. I received a wage garnishment on my first judgment. I've satisfied this judgment and waiting for a reimbursement from the lawyer representing the creditor because I've overpaid. The second judgment is close to two months old. There are no garnishments in place, but I've paid nothing towards the judgment. This leads me to my first question. This judgment is in regards to the last month's rent for my last apartment. Can this be discharged in my bankruptcy? Another question I have is, I received a letter from the landlord stating the damages to the apartment exceeded my security deposit. It didn't state whether I owed more money or not. Should I call them and ask if there is additional dues so I can include those I'm bankruptcy? Also, since this is a local apartment complex, is it likely they will show up on my 341? The hateful feelings the apartment complex had for me were mutual.

My last judgment is about two weeks old and from Capital One. I received a letter about the default judgment from the court in the mail. I'm most worried about gettinganother wage garnishment from Capital One. I've read people say their attorney thinks they're a particular amount of time away from filing. The attorney I intend to hire states as soon as I pay the $999 filing fee they will file. For the people stating they have such and such time to file, what is their hold up in filing? Is it missing paperwork, or but having the fees? I'm worried about having the money to file and they say... Oh you didn't do this!

I bought a car in April. Can this come back and bite me at the 341 hearing? My old bar was repossessed in December, which made me need a new car. I intend to keep my car, however I'm afraid after I file bankruptcy the car loan company will decide to take the car back and I'll be stuck footing the bill. If they're going to take the car I'd rather include it in the bankruptcy, but if they're willing to work with me I'll keep it. Do I create a dialogue with them about it, or what?

Thanks for you're time! I look forward to meeting many of you!

[btbeme]

Welcome to the Forums!

First things first. Judgements of almost every type can be scraped off in BK, but it takes effort. A basic bankruptcy filing will likely cost you what you have quoted, or more. Taking care of judgements isn't usually included in that price, so get a good answer from your attorney before you file.

Second, cars are assets secured by a lien on the title, which means that if you fail to pay, the lender owns the asset. Yes, they can take it away even if you file BK. Bankruptcy filing will only delay the repossession, unless you work out a deal IN WRITING that is filed as part of what is called a Reaffirmation.

Third - it is very rare for a creditor to show up at a 341 hearing. Mostly, this is because they have very little sway over the Trustee, though some have shown up simply to tell colorful and (sometimes) untrue stories about the petitioner, which will then (maybe) be investigated by the Trustee. Creditors at a 341 hearing make a somewhat dull hearing a lot more colorful, but they are mostly harmless. That is, unless they really do have the goods on you trying to play "cute" with your filing or providing proof of fraud, etc.

Last - take time to find the right attorney for your situation. Cheap, quick, and dirty are not what you are looking for, especially if you have default judgements. Do it right.

[AngelinaCatHub]

Welcome to the Forums!

First things first. Judgements of almost every type can be scraped off in BK, but it takes effort. A basic bankruptcy filing will likely cost you what you have quoted, or more. Taking care of judgements isn't usually included in that price, so get a good answer from your attorney before you file.

Second, cars are assets secured by a lien on the title, which means that if you fail to pay, the lender owns the asset. Yes, they can take it away even if you file BK. Bankruptcy filing will only delay the repossession, unless you work out a deal IN WRITING that is filed as part of what is called a Reaffirmation.

Third - it is very rare for a creditor to show up at a 341 hearing. Mostly, this is because they have very little sway over the Trustee, though some have shown up simply to tell colorful and (sometimes) untrue stories about the petitioner, which will then (maybe) be investigated by the Trustee. Creditors at a 341 hearing make a somewhat dull hearing a lot more colorful, but they are mostly harmless. That is, unless they really do have the goods on you trying to play "cute" with your filing or providing proof of fraud, etc.

Last - take time to find the right attorney for your situation. Cheap, quick, and dirty are not what you are looking for, especially if you have default judgements. Do it right.

'bt' is pretty accurate but let me add, I had agoraphobia by a medical contraindication with chemo. I know about it and you just don't want to be bothered with people and problems. However, not to answer a law suit is not good and has caused you extra trouble beyond showing up at the hearing. Now the Judgment you have satisfied will not be discharged as you have already satisfied it. You will not get a refund except for your over payment. The other two Judgments must be added and yes it will take a little more legal effort. Get a good lawyer not just a cheap one.

If the $999 is filing fees, that is very high. Usually filing fee is about 225 or there about. Perhaps that is the fee for the lawyer? Usually a no fuss Chapter 7 costs about $1500 to $2500 without problems. Now about vindictive apartment owners, fear not. Kiss them off in your BK. They will be no more than "acknowledged" by the Trustee at your 341 if they show at all. A 341 usually averages five to ten minutes and is painless unless you over talk. Just be honest, answer yes, no, or a VERY short answer. Dress nicely but conservatively and address the Trustee as if he were a Judge. Yes sir, no sir, and thankyou sir.

Welcome to our Forum Family. You are among friends here. Your questions will be answered with respect. (or a Mod will whap their bippy). If you are paying your newer car, it will not be repoed even in a bk. Of course if you are not paying whether in bk or not, it would be. 'Hub

[sunshinepa]

First, welcome to the forum. It's the best place to be when considering BK as there is such a wealth of knowledge and support from the great folks here. It kept me sane through mine that's for sure.

Hub and Bt have already provided some great advice. Especially about finding the right lawyer. I agree that the "filing" fee is way high, are you sure that isn't the total price? Be sure to find out and don't settle for an attorney you are not completely comfortable with.......it's one of the most important first steps. A good attorney will get you through BK almost painlessly in most cases. Consults are usually free so see several until you are completely satisfied with both the services provided and the attorney.

Good luck and keep posting!

[zactak]

Thank you all for your insight and advice!

The filing fee is $999 and they have a $600 administrative/attorney fee. Once you pay the $999, they file the bankruptcy and you make payments on the remaining $600.

[keepsmiling]

One more loud and cheerful "WELCOME!" across the ether. You have found the right place.

That filing fee thing just doesn't sound right. Have you spoken to any other attorneys? Regardless of what you decide to do, you should speak to more than one.

As to why some folks don't file right away, there are any number of reasons. Some have nothing immediately to gain by filing- they may be collection-proof- and are waiting to actually have something to protect. For myself, I have to wait not only to have the cash for the lawyer, but also for some health insurance (had some, price went up, have to pay in a lump sum, don't ask...argh) For others, it's a matter of letting a certain amount of income off their lookback. Or it could be awaiting the birth of a child to increase exemptions. Any number of reasons to get the ducks in a row.

Re your car payment/repo-- depends on the lender. Some will allow "ride-thru's". Tell us who you are with and someone will let you know their experience.

Deep breath, good luck and ... keep smiling.

[keepsmiling]

Just thought of more. Your car shouldn't "come back to bite you" depending on what you are paying, It's smart to buy one while you still can, before your credit is completely trashed, as long as you don't have too much equity or too high of a payment.

Also.. I think someone else here had agoraphobia??? and possibly a special arrangement was made for their 341?? thought I remembered reading that somewhere....

[AngelinaCatHub]

Just thought of more. Your car shouldn't "come back to bite you" depending on what you are paying, It's smart to buy one while you still can, before your credit is completely trashed, as long as you don't have too much equity or too high of a payment.

Also.. I think someone else here had agoraphobia??? and possibly a special arrangement was made for their 341?? thought I remembered reading that somewhere....

It was I in several posts above. Mine was chemical based but real no less. You just don't want to be bothered by people or problems. A very strange situation. I encourage our OP to pull themselves together and face the music as difficult as it will be. Remember, been there, done that. Otherwise the situation gets a bit worse and sooner or later they will have to face people. Lawyers, Trustees, Judges, etc. BK is stressful and not easy, but the reward of a new start is worth this. While in bk I was also in my illness. 'Hub

[zactak]

Thanks, keepsmiling!

I looked into it a bit more. The filing fee is $299 and the attorney's fees are $700. I got confused because of how they set up their payment plan. You pay the $999/filing fee and attorney fees and they will immediately file. Then they create a payment plan for the rest of the $600 to equal $1,599.

I have interviewed a couple lawyers and feel confident with my choice. I felt comfortable with the lawyer and they get good reviews. I have a coworker that didn't shop around much for an attorney and they have a guy that is sloppy at best.

In regards to my car, I went to a buy here/pay here type of place because my last car had been repossessed a few months before. The car dealership is called America's Car Mart. I have had to get my loan changed once already because I got behind in payments. Should I speak with my loan officer about the filing and see what they say before I file? Also, should I get something in writing before filing if they say I can keep the car? The contract does state they can take the car, especially if it's involved in a bankruptcy.

[keepsmiling]

It was I in several posts above. Mine was chemical based but real no less. You just don't want to be bothered by people or problems. A very strange situation. I encourage our OP to pull themselves together and face the music as difficult as it will be. Remember, been there, done that. Otherwise the situation gets a bit worse and sooner or later they will have to face people. Lawyers, Trustees, Judges, etc. BK is stressful and not easy, but the reward of a new start is worth this. While in bk I was also in my illness. 'Hub

Lol, 'hub, no, I saw THAT... it was Peeps

http://www.bkforum.com/showthread.php?64394-Downright-pathetic-procrastination&highlight=agoraphobia

[AngelinaCatHub]

Thanks, keepsmiling!

I looked into it a bit more. The filing fee is $299 and the attorney's fees are $700. I got confused because of how they set up their payment plan. You pay the $999/filing fee and attorney fees and they will immediately file. Then they create a payment plan for the rest of the $600 to equal $1,599.

I have interviewed a couple lawyers and feel confident with my choice. I felt comfortable with the lawyer and they get good reviews. I have a coworker that didn't shop around much for an attorney and they have a guy that is sloppy at best.

In regards to my car, I went to a buy here/pay here type of place because my last car had been repossessed a few months before. The car dealership is called America's Car Mart. I have had to get my loan changed once already because I got behind in payments. Should I speak with my loan officer about the filing and see what they say before I file? Also, should I get something in writing before filing if they say I can keep the car? The contract does state they can take the car, especially if it's involved in a bankruptcy.

Greetings my friend. I hope you have found yourself at 'home'. You sound far better now than your first post. Your car should be just fine as long as payment is made. They don't want the car, they want the money. Now that you clarified the payment plan, I feel much better for you. Sounds like you have things well in hand. Please rely of our place for any additional probs and questions. 'Hub

[notforsale]

I have found that if angelina cat or hub tell you something, trust it. Most all here are awesome! Unsecured debt over $100k....bk atty $1200.....bkforum.com priceless!

[zactak]

It was I in several posts above. Mine was chemical based but real no less. You just don't want to be bothered by people or problems. A very strange situation. I encourage our OP to pull themselves together and face the music as difficult as it will be. Remember, been there, done that. Otherwise the situation gets a bit worse and sooner or later they will have to face people. Lawyers, Trustees, Judges, etc. BK is stressful and not easy, but the reward of a new start is worth this. While in bk I was also in my illness. 'Hub

How did you handle the agoraphobia in your 341 meeting?

[zactak]

Greetings my friend. I hope you have found yourself at 'home'. You sound far better now than your first post. Your car should be just fine as long as payment is made. They don't want the car, they want the money. Now that you clarified the payment plan, I feel much better for you. Sounds like you have things well in hand. Please rely of our place for any additional probs and questions. 'Hub

Sorry about seeming all over the place in my first post. I had all those thoughts going through my head at once and it's already a stressful situation.