Update, it's been awhile...

[DEBTCHAINS]

Hello all,

I was posting here a little last year, trying to get answers, and everyone was very helpful. In fact, my lawyer is a result of this board, a recommendation from another member.

I may have posted this before, but we did get our loan mod done. Our payments are still horrid, but they're at a fixed rate on a jumbo, so I can't complain.

We're probably 60k or so upside down, so we've decided to stay and see what happens. We're not ready to leave yet, although we may move in a few years, possibly out of state. Hoping the market turns some then, if not, we'll deal with it then.

My lawyer says we qualify for a CH. 7, so that's what we're gonna do. I don't like the idea of 10 years on my report vs. 7 years, but I just think the "fresh start approach" is the best bet for us. We'll be strapped somewhat on a cash only lifestyle, but it's going to be a welcomed change. We should have house payment, (a second too) and car payments, but that's it. Still have to meet with the lawyer to get everything in order, but he says we qualify.

Was served by Citibank 3 days before Christmas! $6700. I was shocked and embarrassed. Guy was nice about it, but still! We'd planned on waiting a few months to file, as our first new mortgage payment was due Feb 1st. We wanted to have a couple payments in the books, but now we have to file. I was supposed to be in court on 1/22 vs. Citi, but my lawyer said not to sweat it, that there was another 30 days or so after that before anything really started to happen. So, he's targeting 2/23 filing date, no later, to take care of it. By the time things get rolling, we'll have another mortgage payment on the books for March. We have ever intent of staying, and he told us that as long as they're getting a payment, (and a full one based on the loan mod) he can't image the mortgage company raising an eyebrow at our filing Ch. 7.

So, looking forward to the fresh start and being clean, but nervous a bit too. Lots going on, stressful times, etc.

[BKDefender]

If your attorney filed an answer in the case then I would tend to agree. But I got a call form someone a few days ago where they were served the lawsuit on December 20th, didn't file an answer, and the creditor's attorney obtained a default judgment on January 20th, and garnished their wages starting on January 25th. It was a very efficient machine.
Filing an answer and opposing a motion for summary judgment based on not having time to even do discovery yet is a good way to buy a couple months until you file.

--William

[DEBTCHAINS]

If your attorney filed an answer in the case then I would tend to agree. But I got a call form someone a few days ago where they were served the lawsuit on December 20th, didn't file an answer, and the creditor's attorney obtained a default judgment on January 20th, and garnished their wages starting on January 25th. It was a very efficient machine.
Filing an answer and opposing a motion for summary judgment based on not having time to even do discovery yet is a good way to buy a couple months until you file.

--William

That's scary! Well, we're way past that now, I don't think I can do anything about it but trust what my lawyer told me. He said if I didn't show up, they'd have to file something else to move forward on wage garnishment, and that was another 30 days? (I'm in CA) I forgot the lingo, but he said I didn't need to worry. (and I was very worried, thinking I needed to have something in writing 30 days from being served) I asked repeatedly, and he reassured me that as long as we were filed in Feb, it would take care of it.

I have yet to hear from the court of have any messages in regards to the case.

[BKDefender]

It might take 30 days to get a default in California, but it doesn't here :-)

[catleg]

It might take 30 days to get a default in California, but it doesn't here :-)

"Business friendly Nevada"

Here in NJ, cases under $15k can proceed directly to default judgment, happens automatically. The deputies of the "special civil part" earn a 10% commission on their collections activity. What's funny is that it's such a good deal for them, they've actually been caught collecting on judgments for regular civil court. I've also seen appellate cases based strictly on which county's special civil deputies are authorized to perform a garnishment. (fighting over the debtors bones so to speak).

[DEBTCHAINS]

Well, you guys have managed to scare me a bit, but there's nothing I can do now but to trust what my lawyer said. It's about 2 weeks past my court date, so what's done is done. Lawyer had my paperwork, we're talking again this week and are going to file before Feb 23rd.