Finally made the decision, hiring a lawyer today

[gamecockfan]

After multiple consultations and a couple of years of trying to put it off, I am finally hiring an attorney today. I have all the paperwork filled out and hopefully this goes smoothly.

The one thing that really worries me is a current lawsuit by one of the creditors. After filing my answer and responding to their discovery they ended up filing a motion to compel since my response was not adequate for them. The judge filed the order last week and I have 30 days to respond. So that gives me until about the 11th of October or so.

I'm really hoping that my attorney will be able to file for me before then so that I don't have to worry about this case any more. I made sure to gather ever piece of information he requested so hopefully he will be able to get it put together quickly.

The only other possible issue is that my car is financed through Ford. I purchased it earlier this year. With my trade-in and money down I have about 4k in positive equity and a 2.9% rate so I'm hoping to keep it. I've read that Ford can be pretty tough when it comes to reaffirming.

[btbeme]

Ford first. If you do not reaffirm, Ford will repo. Almost a guarantee. Be absolutely sure, beyond any doubt, that you can afford this vehicle even if disaster strikes after BK and your income is reduced. You really, really don't want a repo after reaffirming.

Regarding the lawsuit - a motion to compel is simply a standard arrow in their quiver. Of course, no Answer will ever EVER be adequate. Check with your attorney to see when your case SHOULD be filed. If you rush your Ch 7 filing because of a lawsuit, you run the risk of having all kinds of bad things happen. File only when ready. The lawsuit, judgement, or even a garnishment can be stopped and fixed by a BK filing. Certainly, it is a pain in the butt, but filing too early can open the door to all kinds of evil stuff.

Now, a rant. Not because of your situation, but just because lots of other fence-sitters may be reading this (because of your excellent headline)... Don't wait to speak to an attorney early on if you think a bankruptcy may be your best or only way out. Lawsuits, judgements, garnishments, an empty 401(k) and IRA - these are all signs of waiting too long. Get your answers early. You can still maneuver to try to avoid a BK, but you won't make a lot of expensive mistakes along the way. I call this "pulling your parachute ring early" instead of pulling it too late. End rant. Much love.

[gamecockfan]

Thanks for your reply.

I dropped off all of my paperwork and payment for the attorney today. He once again told me not to worry about the lawsuit. He came highly recommended and only does BK law so I feel a lot better about the whole thing. It still sucks but I feel a tiny bit more at ease right now knowing I've made the biggest step. As far as BK's go, my case is pretty straightforward according to him. No home, no assets that can't be exempted, nothing unusual. Just a bunch of CC debt.

You are right about waiting to speak to an attorney. I spoke with a few attorneys, including this one, 2 years ago when I first considered BK. I really wish I had gone ahead with it at that time.

I've got a little while to think about the car. The payment is pretty low, good interest rate, not upside down, plenty of warranty, and only 43 months remaining on the loan. The attorney already stated that Ford will require me to attempt to reaffirm the loan if I want to keep the car. He said if the Judge declined the reaffirmation that I should be able to do a ride through. If I don't attempt to reaffirm then Ford will repo.