will I get sued? Or can I avoid it?

[pepperoncini]

It all depends on the creditor and what you may have. Chase and Cap1 are notorious for suing quickly. However, not everyone here has been sued by them.

GE Money usually pawns things off on CAs that break every rule in the book (I have two GE accounts, both CAs are being sued right now when a NACA attorney took me on contingency.)

BoA rolled both accounts into one for collection purposes and the CA broke every rule in the book. (Another lawsuit. The lawyer is working on nailing the OCs as well as the CAs. I suspect he may have found something with them reporting this as two debts, but only collecting it as one.)

For me, Citi skipped the CAs and sent it straight to a collection attorney, who is threatening "legal action." Now that NAF is gone, I have elected arbitration so they will not be able to sue. Creditors are no longer allowed to elect arbitration after they have been caught in bed with NAF who was sued by the Minnesota AG and is out of the arbitration business.

(I chose a different path because I don't qualify for a 7 and a 13 would kill me financially. I am current on all but 5 accounts. My way is not the right way for most...most are not able to pay a thing and BK is a good option. )

Nonetheless, you are not protected from suits until you file, and some are quicker than others....and may never sue at all depending on situation. You can always lag and drag and file the second a suit pops.

It's not the lawsuit I should be concerned with though, right? It's the enforcing of a judgement, right?

Some days I feel like I should just file the BK13. Other days, I think it would be better if I wait for the BK7.

The retainer is paid, all I need to do is go sign the papers for the BK13.

I feel encouraged that some have put off CAs for years. Heck, I got four CA letters in the mail just today...

[jacko]

From the information you provided in previous posts, you are collection proof. And your lawyer said that you can only be garnished for $250 per year. So why are you freaking out? Why not save BK for another day when you really need to use it like medical bills?

Have you scrutinised your monthly living expenditures like giving up cable and the cell?

It's not the lawsuit I should be concerned with though, right? It's the enforcing of a judgement, right?

Some days I feel like I should just file the BK13. Other days, I think it would be better if I wait for the BK7.

The retainer is paid, all I need to do is go sign the papers for the BK13.

I feel encouraged that some have put off CAs for years. Heck, I got four CA letters in the mail just today...

[pepperoncini]

From the information you provided in previous posts, you are collection proof. And your lawyer said that you can only be garnished for $250 per year. So why are you freaking out? Why not save BK for another day when you really need to use it like medical bills?

Have you scrutinised your monthly living expenditures like giving up cable and the cell?

Are we collection proof? They can garnish and levy our bank acct. Then my headaches would be bigger than they are now... I guess I don't understand collection proof?

We filed on medical bills in our first BK. It was a bad, bad time. We sat in the atty's office with two tiny newborns and had buried our daughter 15 months prior after a drowning accident. Life was henorraging in all directions and it was terrible.

Fast Forward to today...we put ourselves here. Spending too much, not paying attention, depression and pay decreases all landed us here.

With $37K and 6 people, we're pretty bread and water here. Even the BK13 atty questioned whether we could afford the $100/mo. payment.

We don't have cable and our cell phone is only $15/mo. No car payments, house payment is only $600. Utilities are about $275/mo.

I think we can do this...but I'd really like to put the $20K+ we would pay into a BK13 plan toward the student loan debt we both have.

But the timeline has me nervous.

[tay666]

Are we collection proof? They can garnish and levy our bank acct. Then my headaches would be bigger than they are now... I guess I don't understand collection proof?

Well, you are collection proof.
You have no wages. So, any debts in your name they have nothing to garmish.
That is why I said if you get seperate bank accounts you would have less to worry about. They would not be able to hit your husbands account for your debts.


I guess the big question is how much is owed by whom?
Which are joint, and which are only in one of your names.

[flyinbroke]

It's not the lawsuit I should be concerned with though, right? It's the enforcing of a judgement, right?

Some days I feel like I should just file the BK13. Other days, I think it would be better if I wait for the BK7.

The retainer is paid, all I need to do is go sign the papers for the BK13.

I feel encouraged that some have put off CAs for years. Heck, I got four CA letters in the mail just today...

Yes, getting sued means squat. They have to prove their case and get a judgment before they can go after your income or bank accounts. And many times they will figure out if it will be worth their while to sue (I expected it...I have not stopped paying everything, and I have income. However, they had enough violations that can get my debts cancelled out with an attorney. We shall see how that goes.) You don't sound "sue-worthy" but that does not mean they won't try.

You don't have to rush into BK. Letters are not judgments. If you get sued, DO NOT blow that off. Right now, just VOD all your CAs.

[pepperoncini]

Well, you are collection proof.
You have no wages. So, any debts in your name they have nothing to garmish.
That is why I said if you get seperate bank accounts you would have less to worry about. They would not be able to hit your husbands account for your debts.


I guess the big question is how much is owed by whom?
Which are joint, and which are only in one of your names.

Oh, I see...yes, *I* am collection proof.

DH would not be.

Our debts are about evenly split - $30K and $30K. No accounts are joint except a Target card that has $600 on it.

For DH, his largest card is a Chase card that has already charged off - $9K owed. CA trying to collect.

So I should be hunting for banks on Monday...separate accounts.

If he has a "Pay card" that is checks can be put onto, is that safe from levy? Right now, the direct deposit is divided between two bank accounts and his "pay card".

[pepperoncini]

Yes, getting sued means squat. They have to prove their case and get a judgment before they can go after your income or bank accounts. And many times they will figure out if it will be worth their while to sue (I expected it...I have not stopped paying everything, and I have income. However, they had enough violations that can get my debts cancelled out with an attorney. We shall see how that goes.) You don't sound "sue-worthy" but that does not mean they won't try.

You don't have to rush into BK. Letters are not judgments. If you get sued, DO NOT blow that off. Right now, just VOD all your CAs.

I really have nothing to give them. They can sue, but I have nothing but a heap of bills to wade through...

I'm trying to set this straight and deal with things in the best way that I can that will not come back to haunt me in the future.

If/when they sue, that's when I should file right? or should I wait until they try to garnish?

[pepperoncini]

Another question - would it help to have money divided between several accounts? Say, four accounts at four separate banks?

[tay666]

I'm trying to set this straight and deal with things in the best way that I can that will not come back to haunt me in the future.

That is the best thing you can do.
Read as much on these forums as you can find that pertains to your circumstances.
Figure out what all your options are.
Decide which course you will actually be able to follow through with.
Then figure out your game plan, and follow through with it.

As of right now, you are in no hurry.
You have time on your side.
Use that time to educate yourself and try to find the best way through this.

[pepperoncini]

Thanks, Tay. Right now I'm scared and worried.

And broke.

But things are looking better in every area of my life except this one. But, hopefully soon, this will be long past and we'll be on to the next chapter of life. In every way...

[momofthree]

Are we collection proof? They can garnish and levy our bank acct. Then my headaches would be bigger than they are now... I guess I don't understand collection proof?

We filed on medical bills in our first BK. It was a bad, bad time. We sat in the atty's office with two tiny newborns and had buried our daughter 15 months prior after a drowning accident. Life was henorraging in all directions and it was terrible.

Fast Forward to today...we put ourselves here. Spending too much, not paying attention, depression and pay decreases all landed us here.

With $37K and 6 people, we're pretty bread and water here. Even the BK13 atty questioned whether we could afford the $100/mo. payment.

We don't have cable and our cell phone is only $15/mo. No car payments, house payment is only $600. Utilities are about $275/mo.

I think we can do this...but I'd really like to put the $20K+ we would pay into a BK13 plan toward the student loan debt we both have.

But the timeline has me nervous.

Where are you getting the $20k figure? If your attorney is going to set you up with a $100/mo payment for 36 months (clearly you're under the median), that is only a total of $3600 when all is said and done. You'd pretty much just be paying attorney fees and trustee fees and a teensy amount towards unsecureds.....

[pepperoncini]

Tax refunds. We're expecting to get back $4-5K even with filing "exempt" on federal and taking the advance on EITC though the year. Last year we got back $8400.

The advance on EITC is the only change we made this year. We filed "exempt" on federal last year. Our county was declared a disaster area and we got extra back for that and we're both students so we claim that as well. In the end, we got back $8400.

In the past, we usually got back $7000 - $7500. That was with "exempt" on fed. But the advance on EITC should knock that down to around $5k.

So - $5k +$5K + $5K (three tax refunds) + $3600 = $18600 (give or take)

$5K in a tax refund is about 15% of our annual income. That's why I'm hanging on so tightly...