While waiting to file...

[Ineedhelp2]

Can a judgement or lein appear suddenly and without warning?

During the next month or two while preparing to file, I don't want unsecured debts to be suddenly secure.

Also, if I need to call creditors and get information for bk purposes, should I let them know I am likely to file?

The attorney I recently visited gave me an information packet, and it said that once retained, if I get a call, to tell them to call his office.

That's fine, but at this point the filing has not been done and could be weeks away. Could the creditor take any legal action before the filing?

[bezoar]

It usually takes 60 - 90 days from the date that you are served w/ a lawsuit before they can get a judgment. Sometimes unscrupulous law firms will play fast & loose w/ 'service,' and you can end up being sued without knowing about it.

Once I retained my atty, I simply dropped a letter to each new CA with his name, address & phone. I didn't file for about a year - none of my creditors took any further action once notified that I had representation. (Capital One had sued me a year prior to hiring the atty.)

They can sue you up until you actually file. If they do, the filing will stop the lawsuit in its tracks once they're notified - as long as it hasn't yet gone to judgment.

My state (OK) has a live searchable courthouse docket database for the major counties. I just searched my name every few weeks to see if anything was coming at me unexpectedly. You might see if you have that available in your location.

[Ineedhelp2]

I have a situation where I was sued for sending an unsolicited fax.

I understand the law a whole lot better about that now, but I think that people who sue over it are really scraping the bottom of the barrel.

At any rate, I settled with an attorney for $2,000. If it had gone to court, I could have had a $5,000 judgment or more, considering attorney costs, etc.

I have paid $1,000 and owe $1,000 in payments, with the first payment to start next week.

According to the settlement I signed, if I breach the agreement, I will be liable for a $5,000 judgment.

I certainly would like to get this one erased in a bk situation. Just was wondering if I fail to pay the first payment, if they could get that judgement and a lein before I file bk.

I don't understand all the legal issues in the letter, but it seems that this is still an open case until I pay up completely.

[SinkingFast]

Eeewwww!! This could be a rather sticky wicket!!

Depending on your State, maybe you have to served. Either by Certified Mail or maybe a Sheriff or a Process Server will approach you.

Could be, your State allows the plaintiff to merely advertise in the local newspaper. You don't see the ad, your bad.

Maybe they will "pretend" to have tried to serve you, and then you get a 10 day, "Les Pendence" for a short notice Court hearing.

Maybe you'll know before. Maybe you won't.

AND, if you file BK within 90 days of making that $1K payment, that might be considered a Preferential Payment. The Trustee could go after the Creditor to get that money back.

[FraggleRock]

It must have been one heck of a fax you sent for someone to drag you to court over it! We were always getting unsolicited faxes where I worked.

That being said if you miss a payment they can report that to the judge and take you back into court because like you said your case is still open.

[Ineedhelp2]

It was just a one page fax. And I hardly ever sent them out.

I didn't know I could get in that kind of trouble.

The attorney is making big bucks getting people to sue over unsolicited faxes.

Anyway, the first payment is due this week. I am wondering if I should pay it or if I have time to be delinquent until bankruptcy is filed.

[Jman30]

Damn! I have an office fax full of unsolicited faxes! I must throw away dozens each day!

[FraggleRock]

I would call your lawyer. That's a tough one that none of us should really answer for you.

[IOIOIO]

They can sue you up until you actually file. If they do, the filing will stop the lawsuit in its tracks once they're notified - as long as it hasn't yet gone to judgment.

If you have no real property or vehicles, are the consequences any worse if a CC company obtains a judgment against you for a delinquent account? Can't the debt be discharged in BK pretty much the same regardless of whether or not it's gone to judgment?

[Ineedhelp2]

Can they make it a lein against my house?

If so, then it becomes a secured debt.

[bezoar]

The judgement basically gives them license to hunt. Bank accounts, salary (generally no more than 25%), other stuff.

Yes, the judgement will be "discharged" in BK, but it sits there in the "public records" section of your credit report. Don't know how that might affect ones credit scores, etc.

And yes - a judgement can be converted to a lien on real property. Your attorney will have to file a motion to avoid lien to have the lien removed - at additional cost to you.

[Jman30]

The judgement basically gives them license to hunt. Bank accounts, salary (generally no more than 25%), other stuff.

Yes, the judgement will be "discharged" in BK, but it sits there in the "public records" section of your credit report. Don't know how that might affect ones credit scores, etc.

And yes - a judgement can be converted to a lien on real property. Your attorney will have to file a motion to avoid lien to have the lien removed - at additional cost to you.

The judgement will remain your credit report, no doubt. I have two on my credit report. The best you can do is write the credit agencies and get them to bring the balance down to $0.00 and show it as "paid in bankruptcy" or "included as bankruptcy." That is better than just showing as NOT PAID.

Technically, they shouldn't bring the balance down to $0.00, but if write them the right sort of letter, they will. You can check the Rebuilding Credit forum for more info.