Bets On Who Is Going To Blink First (Mother vs Cap. 1)

[BrokeIn2010]

Okay she's talked to her lawyer this morning: He settled it for $75 a month and total payment of 6000 dollars (they sued for 2500 twice what was originally owe, but the settlement says she has to pay all the court costs), 12 months with a balloon payoff in 12 months of the remaining debt, and they want her to agree not to put the debt into her Ch. 7-- if she doesn't agree to their terms they will go after a lien/sale of her home. Her attorney said just do the reaffirmation and pay it, reaffirm the one debt, and discharge the rest. I told her it sounded to me like she was getting screwed with her pants on.

[tobee43]

Okay she's talked to her lawyer this morning: He settled it for $75 a month and total payment of 6000 dollars (they sued for 2500 twice what was originally owe, but the settlement says she has to pay all the court costs), 12 months with a balloon payoff in 12 months of the remaining debt, and they want her to agree not to put the debt into her Ch. 7-- if she doesn't agree to their terms they will go after a lien/sale of her home. Her attorney said just do the reaffirmation and pay it, reaffirm the one debt, and discharge the rest. I told her it sounded to me like she was getting screwed with her pants on.

brokein...yes, i'm really surprised her atty did help her better negotiate the settlement amount?

is it possible for her to seek another atty's advise about this??

[BrokeIn2010]

That's what I'm trying to talk her into doing, but she's afraid they'll jack up the amount again. The "continuance" apparently was "well if she doesn't pay, this the date she's showing up in court" they'll drop it if she pays them.

[BrokeIn2010]

She signed the final settlement yesterday evening-- I was with her, loooong meeting done at her attorney's office and with the other side on the phone. They agreed to drop the provision about not filing it in Ch. 7 (so debt go bye-bye in a few weeks); no down payment-- once they went over the finances and the medical expenses started racking up you could hear in his voice the Cap. 1 lawyer sort of realizing they've got a worthless judgment; They are going to take a lien on the house (they wouldn't back off that) but have agreed not to go any further so long as she either pays the $75 a month or files the debt in BK; no levies or garnishments at this time; she misses one payment she has 72 hours to pay the whole thing off, but like her lawyer said she'd be required by-law to stop payments to ALL her bills during the BK process anyway so that part's not legally binding after the Ch. 7 papers are filed and the stay kicks in. She might, MIGHT, have to "buy back" the difference in her exemption of the equity on the house, but that'd only be about 1500 dollars over a 12 month period versus 6000 over a 12 month with a balloon.

[tobee43]

She signed the final settlement yesterday evening-- I was with her, loooong meeting done at her attorney's office and with the other side on the phone. They agreed to drop the provision about not filing it in Ch. 7 (so debt go bye-bye in a few weeks); no down payment-- once they went over the finances and the medical expenses started racking up you could hear in his voice the Cap. 1 lawyer sort of realizing they've got a worthless judgment; They are going to take a lien on the house (they wouldn't back off that) but have agreed not to go any further so long as she either pays the $75 a month or files the debt in BK; no levies or garnishments at this time; she misses one payment she has 72 hours to pay the whole thing off, but like her lawyer said she'd be required by-law to stop payments to ALL her bills during the BK process anyway so that part's not legally binding after the Ch. 7 papers are filed and the stay kicks in. She might, MIGHT, have to "buy back" the difference in her exemption of the equity on the house, but that'd only be about 1500 dollars over a 12 month period versus 6000 over a 12 month with a balloon.

that sounds more like it...that 6k with a balloon, sounded like a nightmare....i'm all for the 1500 over the 12 month period!! that's great news for her!

[BrokeIn2010]

They didn't want to budge till she started listing medical expenses-- some of which their behind payment on, which is about 66%+ of their monthly income-- insured and uninsured, then the utilities, by end there simply was no money for anything unsecured. And the $1500 is a maybe seeing has they are so far underwater at the moment, the lawyer thinks the trustee might just wave it off.

[tobee43]

They didn't want to budge till she started listing medical expenses-- some of which their behind payment on, which is about 66%+ of their monthly income-- insured and uninsured, then the utilities, by end there simply was no money for anything unsecured. And the $1500 is a maybe seeing has they are so far underwater at the moment, the lawyer thinks the trustee might just wave it off.

wouldn't that be GREAT if the trustee just waived it off. it's such a hassle with some of these creditors..it's like......what do they want when you have nothing to give??? BLOOD! i guess.