Civil Summons, living in Ohio- Help!?!?!

[K8T]

Hi, I am new to the forum, and am looking for some help.

I have retained an attorney here in Ohio, because I need to file bankrupcty. I am currently unable to file because I spent the money to pay off the attorney on my daughter's medical bills.

Problem is, I am a stay at home mom with no income, except my husband's. I am being sued by Asset Acceptance, and I am the only one listed in the civil summons.
Do I show up to the court date, or do I just let it become a judgement? I don't want to call the bankruptcy attorney because I retained him a year ago, and I recently contacted him and he acted like I was a monster to event consider calling him, and he told me to call my creditors and work something out with them, becuase it would be cheaper than a chapter 13, but he would work with me if I could come up with the money soon.

This is only my debt (I was very young, and they gave me a huge credit limit and I was stupid- I have now learned my lesson BIG TIME), but from what they attorney said, I have to file a chapter 13 because of how much my husband makes. So he has to pay for my past mistakes? This sounds strange to me, so I wanted to get some outside opinions.

I feel horrible I am putting my family through this, and I'm not denying that the debt I am being sued for isn't mine. I just can't go back to work to pay for everything because all of my money would be going to daycare.

I have no idea what to do! Should I talk to another attorney about filing for chapter 7? Or do I force my husband to pay for my debt in a chapter 13 like the attorney says?

In a chapter 13, can I keep one credit card open (I've been very responsible with one of my cards)? Is it possible to buy a house during a chapter 13 since it lasts for 5 years?

Any advice would be greatly appreciated.

Thanks,
Katie

[Nowwhatohio]

If it's cheaper to negotiate a settlement with the company rather than file BK why don't you call them and offer to settle the lawsuit and work out some terms? Ask to pay back 25-50% with a monthly payment you can deal with and no more interest or fees then play up the fact that it's that or you'll have to file BK and they'll get nothing (they don't have to know you don't qualify for Ch. 7).

[BassBoy]

I agree with Nowwhatohio. If you file BK on this one debt, and let's say it's a Ch.7, you can not file another Ch.7 for 8 eight years...so...if a life altering event arises, you may need that BK later. But let us hope and pray that doesn't happen.

[K8T]

Just to add more information, this is not my only debt that would be dicharged. I have QUITE a bit of debt to discharged.

Katie

[BKTango]

First of all welcome to the forum!

Okay can you possibly clarify, because in your first post you stated it was your only debt, now you have quite a bit of debt you can discharge?

If we can be of some help or offer some advice we will try but it would be helpful to have the right info.

State you live in
Husbands salary
Total amount of debt ot discharge
Filing alone or with husband

[K8T]

Sorry! I meant that the debt is only mine, not my husbands. I have quite a bit of debt that I accrued while I was dating my husband. None of the debt is in his name. I have about $40,000 in CC and medical bill debt. That's what I meant by that, sorry for the confusion.
But to answer your questions:
1: Ohio
2: $80,000
3: $40,000
4: Would rather do it on my own. I really want to leave my husband out of it because of the nature of his job.
Thanks so much for your help.
Katie
The obvious newbie

[BKTango]

I'm not exactly sure how it would work out, if you would be allowed to file a chapter 7 without your husband if you even could, because judging by his income you are over the median for Ohio and most likely have to file a ch 13.

The most important thing is answer the summons. Do not let them get a judgment.

Set up 3-4 consultations with bankruptcy attornies in your area and go see them. That way you can see whether or not the first attorney was being truthful with you. After you do that, it's decision time.

If by some chance, you decided to try to "settle" with the creditor who is sueing you, please be aware that you may have to pay taxes on the forgiven portion of the debt on your income taxes unless you can prove insolvency.

[emoney]

A word of advice is that marrage in not a joint venture, it is a partnership. That means your debts are you husbands and the same goes for his debts. Just like kids from other marrages, you just have a new and larger family.
Talk it over with your husband and get on a budget together.
There is almost no need to consider BK.
regards,
emoney

[K8T]

emoney- I'm confused. How do you think there is almost no need to consider bankruptcy? Should I call all of my creditors and work out payment plans? I thought if I did that, they can still charge interest rates. If I file for bankruptcy, doesn't that stop them? Please let me know what you think!
Katie

[K8T]

Another question, how do I answer the summons? Do I call their attorney to negotiate something?

Katie

[emoney]

Katie the answer to your last question is to file a general denial of of their claims in the lawsuit. That will slow down, but not stop the process. In time they can get a judgment.
You and your husband are now married for better or worse. You have debts from the past and have not acted very responsible about then. The past is the past. You cannot do anything about that now, but from today forward you are in control.
You can always file BK either 7 or 11, but hopefully you can settle these debts for cents on the dollar over a period of time. As I recall the SOL is ten years in Ohio so there is not much help there now, but in the future that could useful.
Now firsts things first: file that general denial of the debt and then talk things over with your husband. He is in this thing to, as he is your husband. What real man would not help his wife?
Another source is the radio show named "Dave Ramsey".
Let us know how this is going.
regards,
emoney

[treehugger1]

You can still wind up with a judgment and its reflection on your credit report should the credit reporting agencies pick up on it. BK will keep anyone from collecting on a judgment. It is possible to have a judgment against you, but the BK keeps someone form collecting on it. The judgment does not necesarily go away but the ability to collect on it can. In such a case, it takes extra work to have the judgment vacated (I think that's the term). In some states the judgment can automatically be applied to any assets you have (as in the judgment becomes a default lien on a house, automobile, etc). If you are in a community property state, assets in your husbands name might have the lien assigned to them. I'm not an attorney, but the issue of judgments when assets are at risk, is dangerous territory. If you know you are going to file BK and the debt is yours, then you might want to file before a judgment is awarded against you. As others have advised, with your situation you should probably get in to see 2 - 3 attorneys for an initial consultation. i have a judgment against me at this time, and several other creditors threatening. However, I have no assets other than wages, so a few judgments don't worry me.

[treehugger1]

emoney is offering some sound advice. I'm slowly working with creditors as I decided BK was my last option. While very few of them are willing to reduce what I owe, I have had original creditors reduce interests rate down to 1.75% - 2.00% with five-year payoff plans. Unfortunately, the small creditors/collectors (under $1500) will not work with me, as they can easily file a small claim. But, I've noticed the large creditors ($3K - $15K) are "sort of" willing to work things out. Good Luck.

[keepmine]

I'd make 2 suggestions. See another couple of lawyers about your bk options and, remove yourself from any joint bank accounts.

[leftyf]

I hate to sound like Dave Ramsey, but...

I think you're a good candidate for the "snowball", with some debt negotiation thrown in. I'm at about the same income level as you and would "die for" your debt levels. I'm over 100% of my annual income in cc debt, so I'm about ready to throw in the towel, so to speak. I do think the Ramsey approach "builds character", despite the fact that I've spent a lot of time explaining to fanatics why I'm too deep in to use his methods. It does seem that you are young and can still "tighten your belts" a bit and pay it off.
Are you sick of me using "quotes" yet? I am. This post has no practical advice as I am new to the process and I'm not an attorney. Just wanted to let you know there are others in big messes too...some even worse. Like your husband, I am in a career that will frown on a bankruptcy filing...but it is looking like I'll have to live with that.
Sorry for preaching...and good luck.
Happy 4th in Ohio.

Leftyf