Lost and confussed in S.E. Michigan, getting sued and foreclosing

[gy56]

Long story short;
I wont get into the why's and how's but I'm in the final phase of my foreclosure, I have to be out of my house by May, and now I'm getting sued by Discover and it looks like a few other credit card company's are heading that way soon too.

I was talking with a guy from City bank or something, can't remember what one, but I told him that I have no way to pay any amount or take any offer because I'm broke, haven't worked in almost 2 years, on the last leg of unemployment and about to be kicked out of my home.

I said that I will be hiring a lawyer and filing for bk.

He said that under the new bk laws that I will still be required to pay them all the debt even if it takes me my whole life so I would be better off settling with them or using student loans to pay them.

WTF???

I don't understand.

I have no income or assets that I know of. I have a lease car that I have been able to keep up on the payments by letting my Mother drive it while I have taken over her old clunker, this is all unofficial, but I have the lease for another year or so.

I am using financial aid from the govt. and am in college trying to learn a new career.

So what should I do?
Should I wait until I'm out of my house to hirer a bk lawyer or do it now before my unemployment runs out and I have no choice but to get any crappy job I can find? Is the bk going to help when I go to court with discover card?

Should I even hire a bk lawyer or is that something I can do myself? I could possibly come up with $2k total, is that going to be enough to get this all done?

My unemployment checks get instantly deposited into my checking account, should I stop doing that?

I'm so confused and stressed out over this. I just want to concentrate on my education and getting a clean start. You know the basics like finding a career and an apartment someday without this looming over my head for the rest of my life.

Any advice is much appreciated.
Thanks

[keepinitreal]

He said that under the new bk laws that I will still be required to pay them all the debt even if it takes me my whole life so I would be better off settling with them or using student loans to pay them.

Don't believe a creditor. Their job is to say whatever it takes to get you to send them money. period.

Good luck!

[Ann]

Don't believe a creditor. Their job is to say whatever it takes to get you to send them money. period.

Good luck!

I 100 % agree with keeinitreal...they (the creditors) are nothing but snakes! I stopped answering my phone when they call. They will say ANYTHING to get you to pay. Save yourself undue stress and DO NOT talk to them! I'm sure others on here may say that is the wrong thing to do but I believe it is the best thing for you! Good Luck!

[LALADY]

If you have nothing, they can't get anything.

Problem becomes if they start talking to your neighbors, elderly parents, etc. trying to locate you. If that is an issue for you, then you may want to at least talk to them and say you can't pay. If they talk to you, then they won't talk to others.

[momofthree]

He said that under the new bk laws that I will still be required to pay them all the debt even if it takes me my whole life so I would be better off settling with them or using student loans to pay them.

OMG, I am seriously sitting here cracking up laughing. WHERE do they come up with this stuff??? That guy doesn't know wth he is talking about.

You're unemployed, which clearly puts you into a chapter 7, and if you have no assets, then all you pay are your attorney and filing fees, your creditors get NOTHING from you.

Collectors try to use scare tactics to get you to pay, tell them to pound sand, they can't squeeze blood from a turnip. Do NOT under any circumstances, use student loan money to pay for anything other than school. Student loans are non-dischargeable in bankruptcy. You ARE stuck with student loans until they are paid in full--even if it "takes you your whole life."

[espo1357]

Long story short;
I wont get into the why's and how's but I'm in the final phase of my foreclosure, I have to be out of my house by May, and now I'm getting sued by Discover and it looks like a few other credit card company's are heading that way soon too.

I was talking with a guy from City bank or something, can't remember what one, but I told him that I have no way to pay any amount or take any offer because I'm broke, haven't worked in almost 2 years, on the last leg of unemployment and about to be kicked out of my home.

I said that I will be hiring a lawyer and filing for bk.

He said that under the new bk laws that I will still be required to pay them all the debt even if it takes me my whole life so I would be better off settling with them or using student loans to pay them.

WTF???

I don't understand.

I have no income or assets that I know of. I have a lease car that I have been able to keep up on the payments by letting my Mother drive it while I have taken over her old clunker, this is all unofficial, but I have the lease for another year or so.

I am using financial aid from the govt. and am in college trying to learn a new career.

So what should I do?
Should I wait until I'm out of my house to hirer a bk lawyer or do it now before my unemployment runs out and I have no choice but to get any crappy job I can find? Is the bk going to help when I go to court with discover card?

Should I even hire a bk lawyer or is that something I can do myself? I could possibly come up with $2k total, is that going to be enough to get this all done?

My unemployment checks get instantly deposited into my checking account, should I stop doing that?

I'm so confused and stressed out over this. I just want to concentrate on my education and getting a clean start. You know the basics like finding a career and an apartment someday without this looming over my head for the rest of my life.

Any advice is much appreciated.
Thanks

The CCC's are lying to you. You can file a 7 and not pay anything. If you make too much, you will have to file a 13 and then pay back a portion over 3 to 5 years.

It looks like you are a 7.

Get educated brother. You can't let people lie to you in your life. I am still young and finally have just realized that people suck. Companies suck too.

Just get you head on right, and file. Afterwards, don't use any credit cards. Keep you expenses down and save and live!

As Jesus said, Repent and Live. God came to give us life, not misery. Don't let these liars ruin your life.

Good luck.

[gy56]

Thanks all,
yeah I figured he was full of it from the get go, but what about my other questions about when to get a lawyer and so on....

[BigHairyPig]

Filed pro se

Hi, just wanted you to know we struggled with that same question. So I bought the Nolo book and just started reading it. That took some time, and it was a lot of info. Next I went to the court web site and downloaded all the forms, I went over every single one, attemped to start gathering the financial information to complete them. Once I had a grasp on the enormity of this task I got organized. I made a cover sheet in a bright paper stock, typed a label of the form, and created a way to organize the schedules, declarations, court info. I bought two portable accordian file folders. Then the hell began. Three weeks of a hot mess, very dark days completing the paperwork. But I can honestly say I understand every number and nuance of my bk paperwork. 341 meeting went smoothly. It's not easy, but if you are determined you can do it. By the way, if I hadn't kept meticulous financial records on Quicken and Quickbooks for the last six years, I don't know that it would have gone so well. Having the ability to run expenses and income on those programs really helped. Hope this helps.

[espo1357]

Thanks all,
yeah I figured he was full of it from the get go, but what about my other questions about when to get a lawyer and so on....

First, save all your bank statements and paystubs (if you have any) and any asset information.

Get the lawyer when you have at least enough money to file and can pay the guy (a 7 has a court filing fee of about 300 bucks, and the lawyer is going to be 1k to 2k for a chapter 7).

Just make sure you answer any lawsuits if you get them from the ccc's. This will give you time if you don't have the money to file.

Also, look into getting a lawyer that you can get on a payment plan with. Regardless, you need at least 300 bucks or so to pay for the filing fee.

Things will be ok. Work on developing your job skills and making money. Find out what you like and are good at, and then find where your skills fit the market.

Whatever you do, get knowledge and get around people that are smarter than you, so you can learn from them and network.

Geez, I sound like your father or something.

anyway, here is a great book to read that will help you get on track financially. I read it about ten years ago and just began to reread it after my BK because the BK really pissed me off (I am a frugal person, but this housing market really screwed me). Its The Millionaire Mind by Thomas Stanley and William Danko. Great book.

Take it easy.
Good luck.