Preparing for possibly being sued?

[danoct]

Hello all,

Recently I was entered into a 3 month forbearance for my mortgage that will be executed into a permanent mod at the conclusion of the forbearance.

The forbearance contract clearly states that if I file bankruptcy during this period they will void the contract. That's my problem, I fully intend to file bankruptcy.

I've had multiple hardships within the last year. I'm permanently laid off , my daughter being born 2 months premature, leading to my wife having to leave her job in April of 2008.All this lead to me not being able to pay my medical or credit card bills.

I owe $17,000 to Chase and they said I'm at the point where they will soon decide to dump it off to a collector or take legal action against it. The rep said, unfortunately with the amount I owe they will probably seek legal action and the best she could do is offer a settlement for .40 to the dollar, which I wish I could do, but can't.

My questions are, if I do get sued before being able to file bankruptcy do to the forbearance contract, what can they take from me? I believe unemployment is judgement proof? My bank accounts, can I just take the money out of the account before a judgement against me, making it untouchable? Other then that I have no assets.

One more thing, if they win a judgement against me, will bankruptcy wipe out that judgment? I live in Indiana.

Thanks

[walkthaplank]

Depending on the state where you live, if you are only going to wait 3 months to file, you should be ok. If you were to look at your local courts docket you'll see that there is a bit of a backlog. It takes time to get a judgement.

[keepmine]

The judgment can be dischared in bk.

[eddiep]

They could place a lien on your property as well. You will be served with a summons once they decide to sue you. You will then have about 30 days to file some paperwork with the court that would buy you another one to three months. so between one and four months once you have been served. I stopped paying my cc in Sept, a Credit Union (they seem to be very aggressive) served me in May. If they do get a lien on the property before you file you can have that stripped after bk for an extra fee. I am playing the waiting game with my mod too. Very stressful but I am hopeful everything will work out in time.

[AngelinaCatHub]

Be very careful removing money from accounts without accounting for it. You can spend it on food, utilities and other essential exempt stuff, but if it looks like you have hidden assets from the law, you are in bigger trouble and they can go back looking further into the past.

As the above posters have already said, you are pretty safe in not getting a Judgment for some length of time. 'Hub

[AngelinaCatHub]

test Never mind. I was having trouble posting online. Only a test.