Bankruptcy NOT recommended

[catwhisperer]

OK, many of you know me by now. We met with our THIRD attorney and still walked away without filing. Here is our case in a nutshell - or should I say nutcase!
We had a trailer repossessed and the bank is suing us for the $6000 difference between what they got and still owed. We have massive credit card debt, from what we understand is beyond the statute of limitations for them to collect. We have NO assets (home) and a 16 year old car. Our household ownings are negligible.
Our income is what is in question. We are directors of a S Corp and have not been receiving much income from it - causing our financial problem. If you look at our income, people question how we survived and we keep telling them we didn't. We kept trying to get the business to work to pay the credit cards, that's why we didn't just get a job at Walmart because we could never have paid. Well, looking back we should have.
ANYHOW, we were basically asked WHY file bankruptcy if the only thing is the bank suing us. We are "judgement proof" but our intention is NOT to stay in this same financial predicament.
Bottom line is that the credit card people can't get anything from us because of the statute and the bank can come get our junk. We are in PA and they cannot do a wage garnishment. The BK attorney called the attorney suing us and told them we were there filing for bankruptcy but are poorer than dirt.

So, we walked out of the office, still not filing, but $1000 saved from filing.

Anyone experience something similar with being sued? We're tempted to file pro se and save the attorney fees and "see what happens" Worse comes to worse it gets dismissed but if it gets discharged we saved $700.

But the attorney is saying - don't bother?

[no_it_all]

Three different attorneys have answered your question and you are still wondering what to do?? Please explain why you rather take advice from posters on an internet forum...thanks!!

[djk]

if you do nothing the debt will stay with you for a long time (as far as being hassled about it), if you do a pro se chapter 7 the debt(the part that qualifies) will be eliminated and you will not be hassled. so, do you want to live the next 7 to 10 years being hassled or not?

[catwhisperer]

Three different attorneys have answered your question and you are still wondering what to do?? Please explain why you rather take advice from posters on an internet forum...thanks!!

Actually the first one wanted us to file bankruptcy on the business, the second one did not even talk to us at all to find out the situation and almost accused us of being fraudulent because we are so broke and questioned how we could live. Just wondering if anyone else was in a similar position. I do agree that the debt will never go away but may be uncollectible by the CC companies.

[no_it_all]

Ok, I read through all your posts...Sounds like you want to go BK over 6 thousand dollars....is that right??

[SinkingFast]

Cat,........

All the attnys question lots of things. Some are nice and smooth in their manner, but you know what they're getting at if you do a few Consults.

They are screening. Wanting to read your responses to their questions. See if they think you're being honest or not.

You don't have a concensus opinion from 3 attnys that you should not file. You have one attny that wanted to take on a Biz BK. One attny who found it incredulous that you are able to live on so little amount of money. I think that translates to "I don't wanna waste my time on this case." Just my humble opinion there. And now one attny telling you he/she doesn't think your debt level is worth going to Court for.

Just remember one thing. Attnys give "legal" advice, but they don't have to live with the consequences of their advice. Like telling a client, "Sure. BK against your utility company." Without telling the client that they'll have to pay a HUGE deposit to get utility service in the future.

The last attny doesn't think your debt level is worth filing BK over, but that attny isn't gonna be hounded by living with a Judgement on his/her public record either.

The only thing I can suggest to do is try a couple more Consults.

[SinkingFast]

Ok, I read through all your posts...Sounds like you want to go BK over 6 thousand dollars....is that right??

It's all relative NIA.

If Cat and SO are living on next to nothing/year in income right now, then $6K is a significant amount to them.

[catwhisperer]

It's all relative NIA.

If Cat and SO are living on next to nothing/year in income right now, then $6K is a significant amount to them.

Here's the long/short of it. Our business failed mostly because of my husband. I won't delve into it. We did not seek part time work that would have given us alot more money because we wanted to pay the credit cards and a part time job would not have done it. Looking back, it was a BAD idea to stay in business, I just couldn't believe someone would not want to succeed in business but it happens.
So, over the years, we have managed to cut back on expenses and survive on rent, life insurance, and utilities. You can do it, not always fun.
ANYHOW, yes $6000 is a monstrous amount of money, the CC debt is over $40,000. My thought is PAY somehow the $6000 or file bankruptcy.
If all goes well, my husband will have a job with a regular income in July. We think it may be better to file then because things don't look so squirrely. Nobody believes you can live on so little but you can. We were on food stamps, thinking someday it would turn around. It didn't.

[edwards2]

Cat...the ultimate decision is yours. Our forum is made up of our experience and opinions...we are not lawyers. My husband and I have been on the brink of financial disaster for the past 3 years due to his medical catastrophie. We lived on a minimal amount of money too but we could never see a light at the end of the tunnel. Only you and your husband know what you really need to do. Dont worry about what anyone else thinks...it is your life and your survival at stake. Barely existing takes its toll physically and emotionally too. I agree that some attorneys are so free with advice but they are not living your life...you guys are. Keep us posted - we will help you in any way we can. And by the way maybe we are not a legal entity but we are a support group who don't have a dog in the fight so our advice is all about you...

[aa06a47]

Here's the long/short of it. Our business failed mostly because of my husband. I won't delve into it. We did not seek part time work that would have given us alot more money because we wanted to pay the credit cards and a part time job would not have done it. Looking back, it was a BAD idea to stay in business, I just couldn't believe someone would not want to succeed in business but it happens.
So, over the years, we have managed to cut back on expenses and survive on rent, life insurance, and utilities. You can do it, not always fun.
ANYHOW, yes $6000 is a monstrous amount of money, the CC debt is over $40,000. My thought is PAY somehow the $6000 or file bankruptcy.
If all goes well, my husband will have a job with a regular income in July. We think it may be better to file then because things don't look so squirrely. Nobody believes you can live on so little but you can. We were on food stamps, thinking someday it would turn around. It didn't.

I would file pro-se and get all the debt wiped off the records. Get the fresh start without worrying about who is knocking on your door, who is calling you on the phone. It just isn't worth it.