Unsecured Debt and bk

[boiler704]

Can the CC companies sue you over unsecured debt? I live in NC where they can not garnish my wages. I have not paid my CC since december. In July I will no longer be employed so I plan on waiting to file till then as a chapter 7. Am I endangered of being sued before then?

[jal1129]

Yes, cc definetly can and do sue over thier debt. How quickly depends on a lot of things. How big the debt is, how much money you make, if you have assets etc. Typically you are safe for about 6 months then it could be anytime. Some cards are known for sueing quicker than others. I am not familiar with each state law but even if they cannot garnish your wages its still possible they could freeze any bank accounts and/or put a lien on any assets you have (as in house).

[SinkingFast]

If you haven't stopped using your CC's already, do so.

I know you're hoping to wait until you loose your job. Is that to bring you below the Median Income requirement?? If so, have you figured how many months you're gonna need to be unemployed to bring your CMI down??

Here's the Median Income figures for NC:

1 person 2 people 3 people 4 people
$34,339 $46,066 $52,160 $61,402

Add $6,300/additional family member.

Also, you aren't gonna be sued and not know it. You'll get some warning it's coming. You should research that process for your State to know what to expect. Some States simply require a notice in the paper. Others, the Creditor sends a letter via regular mail. Some States, the Defendant is actually served via a Court authorized process server.

In your case, I'd suggest you Consult around with BK attnys. Talk to 3-4. Find the one you're most comfortable working with. Get your fees paid, your docs turned in and update as needed. Then if something does happen, you're prepared to file on a moment's notice.

[CATCHMEIFYOUCAN]

Why does one have to wait so many months to file BK if they lost their job or stopped working. I know that you have to show at least 6 months worth of paystubs etc. BUT if you STOPPED working, then obviously you are not going to be making any additional income to continue through a Ch13. Im just curious, as you know I converted from Ch13 to Ch7. AND I didn't have to wait until I could prove my income would change IN FACT the day I converted I was working 60 hours Overtime throughout the whole conversion and just waiting to be discharged.

Catchmeifyoucan

[treehugger1]

Good question, Catchme. I've always wondered how you could convert so quickly if the means test was still based on a previous six months. However, I'm thinking that your "newer" schedule I, had to show there would be no projected income to pay your trustee, regardless of what occurred the past six months. I've been pulling up some recent BK filings in my state, and I see several that the means test qualifies for 13, but I see BK 7 discharged. The means test is simply a first check. If your I & J show no disposable income, then I would assume one is only responsible for what one would need pay under a BK 7. I'm assuming in some of the cases I looked at, that amount was $0. If I shut down all overload/overtime, and refused a promotion this spring, My schedules I and J would lead to a 7, while the means tests suggests a 13. The only difference I can see is that if I were buying a home, I could keep it, and i could keep all my "secured" assets. I see plenty of 13's paying 0% - 3% unsecured. What the h*ll is the point of going through all the details of a chapter 13, other than some legal mumbo-jumbo, and the fact that there appears to be little consistency on determining 7 or 13 among the 50 states.

[boiler704]

hmmm good point. i never thought of it that way. i have no assets to protect. after the 341 is there any reason i would need to appear in court?

[CATCHMEIFYOUCAN]

Only if there is an objection of some sort by the Trustee or the Creditor.

Good Luck ! ! ! Catcmeifyoucan !

[CATCHMEIFYOUCAN]

Hey Treeeeeeee !

Good question, Catchme. I've always wondered how you could convert so quickly if the means test was still based on a previous six months.

Its weird, when I looked at my case in PACER I saw the lawyer submitted schedules I and J. But no numbers changed, nothing even income changes??? At the very bottom of the form though, was written, "quitting one job Oct _." and that was all ! ???

However, I'm thinking that your "newer" schedule I, had to show there would be no projected income to pay your trustee, regardless of what occurred the past six months. I've been pulling up some recent BK filings in my state, and I see several that the means test qualifies for 13, but I see BK 7 discharged. The means test is simply a first check. If your I & J show no disposable income, then I would assume one is only responsible for what one would need pay under a BK 7. I'm assuming in some of the cases I looked at, that amount was $0. If I shut down all overload/overtime,

I even worked as much OT from the job I quit the day I quit my day job and kept my night job. I've been doing 30-40-60-70-80 hours OVERTIME to the present and still going strong. I know I took a risk, but guess I got lucky they didn't ask for additional paystubs after I converted.

and refused a promotion this spring, My schedules I and J would lead to a 7, while the means tests suggests a 13. The only difference I can see is that if I were buying a home, I could keep it, and i could keep all my "secured" assets. I see plenty of 13's paying 0% - 3% unsecured. What the h*ll is the point of going through all the details of a chapter 13, other than some legal mumbo-jumbo, and the fact that there appears to be little consistency on determining 7 or 13 among the 50 states.