existing judgments, one pending, file for bankruptcy?

[kenl02]

Hi, I am going insane.

I have existing judgments on me for old credit card debt, i have been served to appear at a pre trial mediation thing for another, and im sure there will be future ones. the last time i was served i just agreed to their terms and left because i cant leave my elderly father alone for long periods.

I am disabled, my only income is the monthly disability check

i went to the local legal aide society (in florida) and they said they cant help me since i didnt have the $299 filing fee for BK. I may be able to borrow the money from a friend, but not until after the pretrial (july 24)

would filing for bk protect me from the existing judgments, and/or the pending one and future one(s)?

I asked at the aide office about a statute of limitations, since i havent been able to pay on any of my debts since july 2002, they said they would only help me file BK, if i had the filing fee. my only income is disability, i have no assets.

can judgment holders come take possesion of things in this house, since i live here.. even though it is owned by my father?

the legal aide office called me "judgment proof" but im not really sure what that means, both for the immediate future, and distant future - in case modern medicine finds a cure for my problem and i can work again someday.

I have to file an answer to the complaint against me by friday.. do I mention that I may be filing for bankruptcy? how do I answer the complaint? i didnt even know I had to answer, that form wasnt included in the paperwork from the process server, legal aide people told me.

I am sorry for the long post, ANY help you can give me is greatly appreciated.

Kenny

[coma]

I'm not sure about your questions regarding answering the judgment and such, but being judgment proof means that, if sued, you haven't anything to take to satisfy the judgment. It's a good thing, in this situation, to be judgment proof.

[BKTango]

Judgement proof is a term usually used for people who are unemployed or on disability with no assets, therefore not collectible on debts.

Definately answer the summons, never ignore those in any case. File the answer providing a "suggestion of bankruptcy", and you are on disability. You can get the "answer" form from the court.

The bankruptcy fee can be waived in some cases of hardship, I am suprised the legal aide folks didn't tell you that. Anyway, if you call the clerk of the bankruptcy court, and ask them they will let you know the form needed to have the fee waived. I believe it if Form 3B. Also, the fee can be paid in installments, but the fee will need to be paid in full before filing.

The judgement people cannot come take your possessions from your home they only thing they are interested in is money, and large assets they put a lein on. Such as a home or car.

The statute of limitations on Florida is 4 years, except on written accounts that is 5 years. Most credit cards are considered open accounts and that would be 4 yrs.

The judgements can be included in the bankruptcy, and when your petition is filed it stops all collection efforts. You are placed under the relief of the bankruptcy court and no one can collect a debt from you or even try to. After you receive your discharge from those debts (usually 3-4 months) for a non-asset chapter 7 you can then go to court to have the judgements vacated from your files.

[JollyGG]

It sounds to me like a bankruptcy may not be your best option right now. Currently there is nothing creditors can do to you. You have nothing for them to garnish or put a lein against.
If the creditor seeking the judgement is beyond the statute of limitations say that in your response.
The reason that creditors are probably seeking judgements even though there is nothing they can do with that judgement at this time is so that they have longer to try and collect. They are also hoping that you will be able to work again someday.
However, I wouldn't recomend being to quick to file until that someday is looking alot more like a real possibility.

[GoingDown]

I agree with the posters above.

There is no urgent need for you to file bankruptcy right now.

There is nothing a judgment creditor can take from you at this point.

But make sure you start getting paper checks for your disability payments instead of direct deposit to a checking account. Then you can just go cash the paper checks and spend the cash. Your income from disability is usually "exempt" from creditors, but once it hits your checking account it enters a gray area of the law, where creditors may try to seize it, and it would then cost you legal fees and court costs, not to mention the time and incovenience involved in trying to get the money back from the creditor after they seize it.

If your condition improves to the point where you can get a job in the future, then you might consider filing bankruptcy.

Or if you think you might inherit money from your folks at some point in the future, then you might be well advised to go ahead and file bankruptcy now, so that you won't have to worry about creditors getting their hands on your inheritance later on. You would need to file bankruptcy and get a discharge of your debts at least 180 days prior to receiving any inheritance or else it would become a part of the bankruptcy estate and be used to pay off your creditors.

[kenl02]

thank you for your responses so fast. I get the disabilty check by mail, so thats not a problem but i think i should file, dont think i can take getting any more process servers at my door. i dont know if there would be any inheritance to worry about or not, I know there is a will in place, and part of it is that I can live here as long as i wish, with another family member as executor of the will, but i dont know the details.

Im sure i will have more questions, i will try to keep them short, thank you again

Kenny

[kenl02]

i just thought of another question. if i file for bk, i guess it would be ch. 7 ? since my debts are credit cards and have no assets, correct?

since i live in my fathers house, do they count HIS income or assets like his social security, retirement accounts, etc. as part of my case in any way??


thank you for your help

Kenny

[GoingDown]

i just thought of another question. if i file for bk, i guess it would be ch. 7 ? since my debts are credit cards and have no assets, correct?

since i live in my fathers house, do they count HIS income or assets like his social security, retirement accounts, etc. as part of my case in any way??


thank you for your help

Kenny

Yes, you would file a chapter 7 bankruptcy because you have no assets to protect.

And unfortunately, yes, they would consider the amount your father contributes to household expenses for the means test. If he is living on primarily Social Security, then the amount in question would probably still fall below the median income for your state, and should not be a problem for you.

I have heard that some courts don't count the income of a "roommate" unless the roommate is your spouse or your dependent child, or common law marriage. But this is just a rumor I've heard.

However if it does cause you to fail the means test, you might have to do what someone I know recently did to get around this... find the cheapest, crappiest studio apartment you can find in your metro area, rent it for 6 months and establish an address there for yourself, and then file for bankruptcy using that address. You don't have to actually live there. You just establish an address there, and thus, you don't have to use your father's income when figuring whether you pass the means test or not.

[BKTango]

Since your only income is disability we can pretty much assume you make less than your states median income, so you would most likely qualify for a ch7. Since you have no assets you won't need to worry about protecting those. Even if you did, in most cases you are able to retain everything you have, as long as it is exempt by your states guidelines.

They will take your fathers income into consideration, but it will be backed back out. It's hard to explain and maybe someone can come along and do a better job of it, but they look at your fathers income as well as yours (household) but then your fathers will be taken back out and it remain with your income and your share of household expenses. I'm doing a terrible job of explaining it. But it kinda works that way.

[kenl02]

thank you

hi, i started the bk process today with an attorney, the only thing i didnt know is i dont have to take the filing fee to the courthouse myself, he will do that, he includes it in this fee. i will do the first counseling thing tonight hopefully online. other than making sure i have all my debts listed, what do i expect next?

Kenny

[keepmine]

other than making sure i have all my debts listed, what do i expect next?


Peace and quiet!
Just be sure that all of the information on the petition is correct before signing it. Make sure the judgment holders are listed as well as the last plantiffs attorney that filed against you is notified.Show up at the 341 meeting and 60 days or so from that meeting, it's all over.

[kenl02]

i just thought of something that might be a problem?? i have no bank account, as i said above. my father is in weak health, and sends me to the store when my health allows, and to the bank for cash to pay for the stuff he sends me for. he writes checks to me, and i go to his bank to cash them. will that show up as income when the trustee(?) looks at my info when i file. i am waiting for my attorney to send me the petition to look over and sign, hes not in his office today or i would call and ask him. i have to show my i.d. when i cash the checks, sometimes a teller will have me swipe my drivers license. its not really income for me, but should i be worried about it?

[JRScott]

You can ask your lawyer. He would know. I wouldn't think it income just part of taking care of your dad.

[kenl02]

i havent been able to get in touch with my attorney yet, does anyone know if those personal checks written to me show up on any records or do banks just ask for i.d. in case of someone passing bad checks, or stealing or something?

thank you,
Ken

[kenl02]

i talked to my att. on the phone, he said it wouldnt be a problem, since im acting as sort of a trustee for my father.

i really want all this stuff over with... i should be filing monday, i was summoned for a pretrial thing for tuesday, i got another summons yesterday from another old cc.. trying to keep my hat on so i wont pull all my hair out ..

Ken