Dismissed papers recieved on chapter 7

[ahall]

Our attorney sent us the paperwork thid morning from court stating that after review of our documents they are filing for dissmissal. So now how long until creditors come after us? Does anyone know? What happens next? We have some 401k money that we can use but not enough to pay cc debt in full. We are in NC where they can't garnish our wages but can get to our bank account. How long does that take? Any advise. We have all cc debt and parent plus after sending 4 kids through undergrad-Atleast all are graduated. Our house and car payments are not behind. Any help appreciated----depressive situation

[TeacherMomma]

I was dismissed too. AMEX started immediately calling after the dismissal was entered in Pacer. I was dismissed in September and by like the end of Oct they were calling. Chase started about 4 or 5 months after the dismissal was entered. But B of A has never called and has it listed as IIB still. We were current and stayed current on the cars so those all stayted fine. The house took like 2 months to start calling us on it, but we were short selling it by that time so it didn't matter.

[ahall]

Worried about bank account

Thanks so much for telling me what you have experienced. We are in the 10 days to tell our attorney whether we want to go in front of a judge or not-but our attorney is so bad-I'm scared to even try. I am in NC and cc companies can't garnish wages but I understand they can take your bank account. I just don't know how soon that could happen or if it would. We have 15 cc and owe 85,000 -all total -we were going to take our 401k and try to settle with the larger ones. I really don't know what to do. I am scared to death. Our house and cars are up to date. I guess they could take a kean on our house also--but I don't know when that would happen either!

[jacko]

Time to open up a Wal-Mart Money Card and a Pay Pal account with a debit Master Card. Be pro active. I would not settle with 401k. Why? Just ride it out.

Thanks so much for telling me what you have experienced. We are in the 10 days to tell our attorney whether we want to go in front of a judge or not-but our attorney is so bad-I'm scared to even try. I am in NC and cc companies can't garnish wages but I understand they can take your bank account. I just don't know how soon that could happen or if it would. We have 15 cc and owe 85,000 -all total -we were going to take our 401k and try to settle with the larger ones. I really don't know what to do. I am scared to death. Our house and cars are up to date. I guess they could take a kean on our house also--but I don't know when that would happen either!

[jwmc1]

why were you dismissed?

[ahall]

Dismissed

The bank administrator says that we have $900 that he found that could be paid into a 13, Our attorney did not use the guidelines for some expenses according to him. She used our Parent Plus loans of $500 that he said cannot be used-so there was$500 to a 13 and then the rest were 100 here and there that he said we could cut down on. Apparently we have a n awful attorney who didn't know her stuff. She only emailed the dimissal papers with a note that read "haven't read -no time to talk now"- well, I bet not as the BA just ripped her to shreds on the whole thing. I don't know-that's how it feels right now. I just need to protect our bank accounts until we can start working on all this mess and tryign to settle with these cc companies. Can you do a direst deposit to a debt card? Does anyone know. I think my company sends a debt card if you don't choose to direct deposit. I got the advise to ride it out-but wonlt they (cc) also try to put a lean on my house? Any helps appeciated!

[AngelinaCat]

Are you comfortable enough with your situation to try to do it yourself?, i.e. pro se? We have a couple of very good pro se filers here, one a CH7, converted from a Ch13, and another Ch13. I will PM them with this thread and ask that they take a look-see.

[tigergem]

Direct deposit to a debit card? I do not know. But one of my previous employers used to offer a "pay card", in lieu of direct deposit. It was a preloaded debit card that got handed out instead of a paper check every week. You might ask your HR department if they have such a thing.

It sounds like your attorney was a real piece of work. Do you know if your case is being dismissed "with prejudice" or "without prejudice"?

Was the $900 per month in your budget and expenses that the BA found? Or was it $900 total that you happened to have laying around that didn't get exempted?

[tigergem]

I think if I had paid an attorney and she "didn't have time to talk", I would camp out in their office until she damn well made time. You paid this person, right? Is she going to refund the fees if the case gets dismissed because of her incompetence?

[justbroke]

ahall, I'm really sorry to read of your impending dismissal. I can see the error with the student loan right off the top! (Student loans are non-dischargeable and almost all Trustee/Bankruptcy Administrators will catch that expense in a Chapter 7.)

If your case is very important to continue, you should probably start thinking about a Chapter 13. I don't think you should continue with the current attorney. However, a Chapter 13 could have a significant payment and that's something you'll have to factor. It reads as though there is no chance of a Chapter 7 for you.

I would not settle by using your retirement (401(k) money). That's a non-starter for me. You should start planning out a Chapter 13. Tell your current attorney you'll convert. However, you'll need a new attorney and more money to pay the new attorney. I'd start shopping for a Chapter 13 attorney immediately. You may want to ask your current attorney for a return of unearned fees.

[ahall]

Dismissed

The paper I got from the BA does not say if it is with "predjudice" or without. When do they tell you? Does it normally say in this motion to dismiss? We have talked about the 13 but don't think it's somthing we can do as my husband is a sales rep and we have to spend our own money for him to travel and then he is not reimbursed for 2 weeks. I can't see how he could keep his job. He has to fly on occassion as well and we have to pay for the ticket up front. I don't think they will allow that in a 13. As to the question of having $900 a month disposable,--if we did not pay our parent plus loans-we would have $500, but I think the rest is BS. Also-we are not behind on our house right now and I understand that we would be behind at the end if the 13? I can get a pay card for my pay from my HR-not sure if my husband can. Everybody I read about on here can't seem to even survive on a 13. We are 60--with 4 grown children and 3 grandbabies. I can't see us being able to live within the 13 with my husband's job. Yes we diid pay over $2,000 for this incompentency!! I am so upset that this attorney has taken us to the cleaners. We just paid her $500 for reaffirmations on the cars last week!! She said they would repo them!!

[jwmc1]

OK, I have a couple of comments and questions.

First, bnelieve it or not, who your creditors are will make a big difference on whether you will want to settle or file, in my opinion. If possible, please list your creditors, the amount owed, and whether it is with a CA or still the OC for collection.

Secondly, have you gone through the exercise of figuring out how much of yor 401k you can pull as a loan or withdrawal? It is not usually possible to pull it all.

Third, have you figured out what your company's policies are if you use the 401k, some will suspend your participation in the plan if you withdraw money.

Fourth, how much can you you get out of your 401k?

Now remember, if you withdraw money from the 401k (assuming you are less than 55), you will get taxed and penalized to an extent that is much worse than filing for bk (not the case with a 401k loan). Also, you may get taxed for amounts settled in excess of $600. My point here is that it is very possible that you would end up paying just as much back as you originally owed, but you would owe the IRS....much worse.

It is possible to do what you want, but it isn't easy. I settled all my debt and I was on the verge of chap 13. It isn't easy.

[jwmc1]

Also, I hope others reading this will take note. You need to meet with a minimum of 3 attorneys and go through every single debt and ask if it is possible to include it in a 7 calculation. I met with 4 attorneys and then made my decision to not file. Also, NEVER use a a debt settlement company.

[seFlaDude]

Sorry for your situation, first off I would not drain the 401k to settle that always a bad move, Depending on how your case is dismissed you may be able to refile a chapter 7, of course getting a qualified attorney who knows and cares what their doing, the creditors can't do anything until they sue you and get a judgement and that takes time and you can also delay that some,

[ahall]

All of our credit card-none with a collection agency all were up to date when we wen to a chapter 7-3 credit cards are over 10,000 and a total credit card debt 80,000. Husband is 59 1/2 so penalty not as bad on getting 401k money out-but still not what we want to do. Can get about 1/2 of debt. Chapter 13 is hard as my husband has to travel with his job, and it is out of pocket and reimbursed. I can't see how we can do it--Sometimes he has to buy an airline ticket. Attorney wrote today wanting our decesion whether to go before judge -convert to 13 or let it dismiss. If we let it dismiss --how soon can you refile? Do all the creditors have to get a judgement before they can get to your bank account??