Bummer. Chase is suing me now.

[MNGurl]

I wouldnt let it rush you to file, just answer the summons and ask for a delay, tell them you are still preparing to file and need more time. Even if they actually get a judgement, who says they will immediately start garnishment knowing you are filing the Ch.13. We have discussed the topic before, and I have yet to figure it out myself, but the trustee may see the garnishment as a preference payment, regardless of the fact that you yourself did not make the payment to them. The trustee needs to give all creditors an equal oppurtunity to get a share of your money, so Chase just cant garnish you for months, and not expect any recourse.

I'm in a similar situation - we've already aswered the summons and have a Case Management Hearing on August 26th and weren't planning on filing until November. How do I ask for a delay - or at which point. Not familar with how to go about this. Right now I'm supposed to answer back on the Plaintiff's Admissions request by July 31...I'm so confused.

[catleg]

As TH points out it's crucial to understand the rules of court in your state. NJ is considered creditor-friendly. It is an uphill battle here. I think that by and large judges here feel justified in awarding summary judgment as long as the paperwork "looks right" regardless of what the defendant says in their pleadings.
They know you can always appeal if you're serious.

[StartingOver08]

I'm in a similar situation - we've already aswered the summons and have a Case Management Hearing on August 26th and weren't planning on filing until November. How do I ask for a delay - or at which point. Not familar with how to go about this. Right now I'm supposed to answer back on the Plaintiff's Admissions request by July 31...I'm so confused.

Make sure you respond timely. If you do not respond, then you have admitted you owe the debt! There is a good site you can reference for tips on responding, read the sticky's there under the forum section "Is there a Lawyer in the House?". If you want you can post your situation there and have people help you with additional specific tips if you need them. The site is www.creditinfocenter.com GL

[cynhgm]

If you have assets, there is the possibility the plaintiff would seek suit and judgment.

We have absolutely no assets besides my retirement account but that is off-limits AFAIK. The only thing the creditors can go after are my wages since I am employed and make relatively good money.

I have an appointment with my lawyer today and will discuss it with him. Since he's almost paid in full we can push the button anytime we want. I am not scared at all by all this mess but I would really like to build a tiny cushion in savings before we file.

I'll post a follow-up.

Thanks for all the input so far. It's been helpful.

[cynhgm]

Make sure you respond timely. If you do not respond, then you have admitted you owe the debt!

I wonder what a good response would be. Since BK filing will happen 100% for sure would an answer along those lines be enough to delay as much as possible? Or is it more advisable to just take the "I have no idea what you are talking about. Prove it!" route? The goal is to delay as much as possible.

[cynhgm]

And, as BB asked, "Did you get served?" Or, did you get soem MB letter stating they intend to proceed with legal action? Intention and service are two different animals.

Yes, I and my wife each got a summons. I even checked the online records and we are both there, side by side.

[treehugger1]

cyn, I also have no assets, a protected retirement account, and good wages. Since you make good wages, will you be filing a BK 13? If so, wage garnishment might be less expensive for a few months.

[bk2009]

Less expensive? They'll take 25% of your income after taxes. At least with the Chapter 13, you get to claim your expenses first.

[falken]

Less expensive? They'll take 25% of your income after taxes. At least with the Chapter 13, you get to claim your expenses first.

For me 25% would have been less than my chapter 13 payment (unsecured payment only).

[treehugger1]

If I would have filed the BK 13, I would have been in a 100% payback to unsecured (40% - 50% of my takehome,) significantly reduced ability to contribute to my optional retirement plans, student loans on hold for 5 years, etc. For the time being, 25% wage garnishment is a deal. LOL Eventually, I may go down the BK road, but when you are in your later years of life, the last thing I need is to have my optional retirement contributions significantly reduced. If I can get the Dept. of Education to eventually apply a permanent15% garnishment to my student loans, then I'll only have 10% available to others who might sue me. Other than my credit being trashed for the rest of my life, it seems like a great deal.

I'm not too worried about suits, but I try to keep abreast of possible future legal actions.

[cynhgm]

cyn, I also have no assets, a protected retirement account, and good wages. Since you make good wages, will you be filing a BK 13? If so, wage garnishment might be less expensive for a few months.

Yes, we are in for a 13. Lawyer today seems overly unconcerned about this and told me that I should just ignore it. We are not even going to answer the summons because what can we honestly tell them? We just let things go down since we will file eventually. As soon as he is paid in full we can file anytime we want. We are now hoping for backed up courts (both cases are actually going into arbitration) so we have a few months to spare.

[SimBroke]

Yes, we are in for a 13. Lawyer today seems overly unconcerned about this and told me that I should just ignore it. We are not even going to answer the summons because what can we honestly tell them? We just let things go down since we will file eventually. As soon as he is paid in full we can file anytime we want. We are now hoping for backed up courts (both cases are actually going into arbitration) so we have a few months to spare.

Absolutely answer the summons - keep it fairly simple, but do not allow them to get a default judgement.

What can you honestly tell them? Nothing - You deny theier allegations and present a few affirmative defenses. Basically, since they took it to court, you force them to prove it - in court.

Most of the time, they (the Debt collection attorneys) are only after low hanging fruit - they love people that dont respond - makes their job easy.

Keep this in mind with your CH13 filing - you can challenge any/all claims - what will be easier to challenge (for amount or etc.) a debt that hasnt been paid on in x months or a recently awarded judgement?

[treehugger1]

It may not matter if you are in a BK 13. Your payment is based on disposable earnings; not on what the trustee thinks the total of all your claims will be. You can challenge all you want, but unless you are in a 70% - 100% payback plan, it probably won't make a difference other than you "might" pay off teh 13 a month or so early.

In terms of answering a summons, there are many posts discussing and arguing the pros-and-cons on this forum.

So many factors. Here are a few:

1) How do your local judges react to civil issues related to monetary contracts? Head down to your local courthouse and pick a day when the docket is full of contract suits. Listen and learn.

2) What does it cost? Here it costs about $190.00 to file an answer. Then the system nickels and dimes you for every motion. You also have to "serve" the plaintiff's attorney here. The cost can quickly add up. The Oregon courts allow for a fee waiver if one is destitute. I can almost guarnatee if someone is BK 13 qualified, that person will not get a fee waiver. They obviously have money.

3) Some states have State rules of civil procedure and then the local counties have what are called their own local rules of civil procedure. In many states, one can hang themself for not abiding by the correct rules of procedure. In other states, the judges grant more leniency to the debtor/defendant.

I'm not saying answering summons for monetary contracts isn't done. It happens all the time. But, you definitely want to do the research and read through some local county cases to get a feel for how the suits are laid out.

I just noticed that in my outback county circuit court there are 3-4 hearings set at 5:00! Friday, of all days. These all appear to be pre-trial and set-trial-date hearings. Since Discover is a plaintiff, I think I'll wander down to the courthouse and see how this part of the case is conducted. The defendant does not appear to be represented by an attorney. So much the better. I'll get another sense of how the judge feels about pro-se defendants. I've never been served in the circuit court (several small claims, but no biggies.) Just in case I may want to take a stab at defending myself if necessary, it can't hurt to get further education.

Other than that the rules and procedures for civil matters vary greatly by state; from service to judgment.