Attorney is recommending quick filing of Ch 7

[ksgirl38]

Who cares, I'm not an attorney and I'm not trying to prove anything. If someone wants to know it's best to contact an attorney.

[btbeme]

I need to dig but I believe I heard it first from my BK attorney, possibly as part of the 2010 Credit Act - not sure. Will see if I can source. But it was something that stuck in my brain when I heard it...stand by...

[HHM]

I think you, or your source, is confusing the fact that as a matter of practice, most CC companies don't sue before 120 days, but they certainly could if they wanted. I spent some time googling, I can't find any such "legal" restriction on a CC's right to sue. (again, unless it is state specific, but I h-i-g-h-l-y doubt it). It is NOT in the 2010 credit card act.

Banks are required to "charge off" credit card balances at the 180 day mark, and car loans and installment loans at the 120 mark (that is a Federal Reserve requirement), but that has nothing to do with the ability to sue upon a default. That is just a matter of regulation regarding keeping track of a bank's financial health and reserve requirements.

Keep in mind, you might have been "told" this, but it is not true, I am just trying to keep wrong information from getting "stuck" in someone else head.

I don't mean any offense by this, but having done this for many years, I am guessing the issue is a matter of hearing something different than what was said. I am guessing the conversation went something like this.

You: I am going to miss my first payment (or, I have just missed my first payment), what is going to happen, I am so distraught...
Attorney: don't worry, you have some time, credit card companies don't sue until after at least 120 days from your 1st missed payment
You: that's good to know, so I won't be sued for around 120 days?
Attorney: correct.

What you take away from that is that the CC company "can't" sue...but that is not what was said, that is what was "heard."

Again, there may be some state specific things, which I doubt, once their is a breach of contract (default in payment) all remedies (including lawsuit, which is the primary remedy for breach of contract) immediately are on the table. The point is, CC companies could sue you even after 1 missed payment, it just so happens that they rarely do.

[frogger]

once their is a breach of contract (default in payment) all remedies (including lawsuit, which is the primary remedy for breach of contract) immediately are on the table. The point is, CC companies could sue you even after 1 missed payment, it just so happens that they rarely do.

That sums it up HHM. Once you breach, everything is on the table.

[Pandora]

....I asked her "what law school did your mother go to"? It is amazing what people think creditors can and cannot do.

Des.

Okay - THAT just made me almost snort coffee through my nose

Thanks for the laugh - albeit I nearly died in the process!

[Pandora]

Who cares, I'm not an attorney and I'm not trying to prove anything. If someone wants to know it's best to contact an attorney.

Dearest ... both HHM and Des ARE attorneys.

[frogger]

I've got some stocks and CDs that I'm trying to get rid of before filing so that's my delay, but if you don't have anything like that then there's no reason to wait. Just a preference really.

Just went back and re-read some of the postings, and this caught my eye.

All I will say is that your bk is going to be interesting when it gets in front of the trustee..........

[Pandora]

Just went back and re-read some of the postings, and this caught my eye.

All I will say is that your bk is going to be interesting when it gets in front of the trustee..........

[pamkev]

Just went back and re-read some of the postings, and this caught my eye.

All I will say is that your bk is going to be interesting when it gets in front of the trustee..........

Now this has me worried. We sold off all of stocks in Dec which did not amount to much under 5,000 that we had in Dec to catch up on bills and put heat in our home. This was before BK was thought of. I was just trying to keep up. What kind of issue will the TT have with this. Our lawyer knows and we can show with our bank statements where the money went to. She said this should not be a issue as it shows it went to pay bills and not luxury items.

[frogger]

Now this has me worried. We sold off all of stocks in Dec which did not amount to much under 5,000 that we had in Dec to catch up on bills and put heat in our home. This was before BK was thought of. I was just trying to keep up. What kind of issue will the TT have with this. Our lawyer knows and we can show with our bank statements where the money went to. She said this should not be a issue as it shows it went to pay bills and not luxury items.

There is a difference between keeping the heat on and "getting rid" of some stocks and CDs. Documentation is your friend......

[pamkev]

There is a difference between keeping the heat on and "getting rid" of some stocks and CDs. Documentation is your friend......

Thank you I feel better now

[AngelinaCat]

Yes, I agree with Frogger. Pamkev, you are fine.

[ksgirl38]

Just went back and re-read some of the postings, and this caught my eye.

All I will say is that your bk is going to be interesting when it gets in front of the trustee..........

CD is going to pay for the attorney fees and stocks are worth less than $500 total. Was planning on getting rid of both this year anyway.