Question I have a lawsuit from Chase and filing for BK....Please Help! this month

[tools2teach]

Just got papers for a lawsuit from Chase Credit. I have 30 days to respond, but we haven't filed for chapter 7 yet. We plan to file by the end of the month. What should we do in the mean time while this lawsuit is pending? Do we refer to our lawyer to handle this or do we take action and respond within the 30 days? After we file for BK, does this lawsuit from chase still get's pursued? There is a threat to put a lien on the house, but we need to be current in order for us to file for Chapter 7.

[olivies]

We were served by Target National Bank just a couple weeks prior to our filing. Once we filed a "Suggestion of Bankruptcy" was supposed to be filed by our attorney, but she never did it. So I went to court the day I was supposed to, the judge sent us to a separate room to negotiate, I told the attorney we had filed bankruptcy and had my case number and the opposing attorney then asked the judge for a continuance. A couple weeks later I received notice that they dismissed their claim. Whether that's just good legal proceedings, since we did list Target as a creditor in our filing and there is an automatic stay in place, or whether our attorney got around to filing the Sugg of Bk (I doubt it, she never charged us the $100 fee) I can't say. If you know for sure you are filing very soon, you can probably just inform your attorney of what's going on and he can help you with your course of action. But if the filing by the end of the month before you have to answer is "probable" but not definite, I would plan on responding to the lawsuit.

[RNY09]

We had to "hurry up and file" because Chase also served me with papers. My attorney said I didn't need to do anything..he would handle it. I was concerned because we were probably a couple days past the 20 days on the papers, but he said not to worry about it. I hope he's right! This is his specialty though, so I assume he knows his stuff. He certainly didn't seem at all rattled by it.

[tools2teach]

Just spoke to my lawyer as well, he didn't seem to be too worried about it, but we would have to file as soon as possible. Can't do this until we get a tax returns

[DYLAN150]

Just wondering what the length of time was from missing your last payment to getting served with the lawsuit? I understand it can be anywhere from 3 months to 2 years?

[RNY09]

My Chase account took about a year after I stopped making payments before they filed a lawsuit.

[nickifan]

My Chase account took about a year after I stopped making payments before they filed a lawsuit.

Good to know. Others have said they moved quickly, I think. I'm only at the 2-month mark but they call a lot and send letters of "concern". I hope to file Ch 7 no-asset in a few months.

What state are you in, may I ask? (Not assuming the NY in your ID refers to the state!)

[RNY09]

I'm in Iowa. Honestly, if you're at the two or three month mark, I would really doubt you have anything to worry about for quite awhile. Yes, they will threaten you with telling you your account is in "pre-legal status" and all kinds of fun stuff, but they have no incentive to sue you yet. It will pass through their in house collections, then off to third party collections, and finally charged off and sold to a "junk debt buyer".

You should see our creditor matrix!!! What started out as about 15 or so accounts has ended up at over 50 because of all the third party collections agencies--some of them disguised as law firms. It's crazy. A year ago, Advanta even Priority Mailed me a set of official looking documents that looked exactly like a lawsuit--it had my name on it and everything. When I actually read the cover letter that came with it, it said something like "this is an example of the type of suit that may be filed against you...."

Now I heard that this might actually be illegal, but it was more than a year ago, so I don't think I can do anything about it now.

Anyway, my point is just that they will try to call your bluff any way they can, so don't fall for it! You have to steel yourself and don't let them rattle you. Also, and I can't stress this enough, MOST collection agency employees may not be the brightest star in the sky, but they're nice enough people IF you are nice to them. I've only had a couple be snippy with me, but heck, you can get that anywhere. If you return their calls and tell them you are filing bankruptcy, they will usually leave you alone for a little while. It took us NINE months to actually file, so after a couple months of not getting a notice that we had filed, most of them checked in with me again. I just told them that we had some unexpected expenses come up that prevented us from paying the lawyer fee, (which was the truth) but that we were chipping away on it, and then they'd go away for a bit longer. Our lawyer also let us give out his phone number once we retained him, so we paid $250 last summer, and that helped us avoid a lot of calls too.

If you ignore their calls, they will keep calling you multiple times a day, and will eventually try to find you other ways. I had collection agencies that had looked at my LinkedIn profile, gone through my husband's website (he wasn't even an authorized user on that account!) and called a friend of ours. You'd be amazed what they can find out about you on the internet. The place that called my friend was one of the snippy ones. But when I called the guy back for the second or third time, I just politely said, "Andrew, I got a message from my friend that you called him looking for my contact information. I don't understand why you would do that, since I've returned all of your phone calls. You know you have my correct contact information, because we've spoken more than once!" He got all sheepish and said he would delete that from my account, and they never bugged my friend again. Honestly, I think they are so used to people running from them and not returning phone calls, that it really throws them off their rocker when YOU pursue THEM. If you're planning to file, just let them know. It actually gives you some control over your ringing phone. :-) Truthfully, I rarely answered the phone when they called, but I would Google the number to find out who it was and then call them back. If you think about it, you can't really blame them for calling. We defaulted on their account, so they want to know what's going on! We would all probably do the same thing until we actually talked to the person and got the story, right? So do I hate collection agencies and credit card companies? You bet. But they're just doing their job. Don't hide under a rock--just face them and take back control of your situation. In this situation, when we're already feeling awful and stressed out, we need all the empowerment we can get. :-)

Hang in there!!!!!!!!!!!

[optimistic1]

You can easily ask for an extension to file your answer, thus delaying the next step.

[nickifan]

Terrific post, RNY09. Thanks so much.

[OutofTime]

In CA, just got sent an official letter to contact chase legal team to settle payments now because they got the green light to file suit. Been 6 months since last payment. I'm filing soon, is this another bluff by chase? Oh btw, debt is 10.5k.

[RNY09]

Well, can't say for sure, but I bet it's a bluff. It's not a lawsuit until the sheriff shows up at your door with papers! And then, you still have 20 days to respond.

Honestly, they would much rather settle with you then send it to court. Especially if they know you're planning to file. Personally I think it's another last ditch effort, but all I can go by is my own experience. :-) Good luck to you!!!! Take a deep breath, OK? We'll all get through this.

[LadyInTheRed]

It's not a lawsuit until the sheriff shows up at your door with papers! And then, you still have 20 days to respond.

That depends on what state you are in and whether or not it's a small claims case. In California, a Sheriff is not likely to serve the papers. You will know that you have a lawsuit when you are served with a Summons and Complaint by mail or in person. You then have 30 days to respond by filing an answer or general denial. Any adult who is not a party to the case can personally serve the papers. Most likely, it will be a professional process server, but it could be a bicycle messenger or an employee of a law firm (and, yes, it could be the Sheriff). It could even be your neighbor. If you are served by mail, there will be a notice of acknowledgment and receipt form and a return, postage-paid envelope for return of the signed form. If you do not sign and return the form within 20 days of receipt, you can be liable to pay the plaintiff's expenses to serve you personally.

If you have any doubt as to whether what you receive is a legitimate lawsuit, the courts in most counties have websites where you can look up the case number to confirm the filing of the complaint.

Procedures and time frames are different if you are sued in small claims court. You will receive a notice of the claim at least 20 days before the hearing date. The notice will either be served personally or served by the court clerk by certified mail. You do not have to file a response, you only have to show up in court. You can request a continuance by filing your request at least 10 days before the hearing. Chase is not likely to sue in small claims court because a corporation can sue for no more than $5,000 and can only file 2 claims each year in excess of $2,500.

Okay, I'm spewing California Civil Procedure. I need to get a life!

[RNY09]

Good point...thanks!

[WhatMoney]

...
Okay, I'm spewing California Civil Procedure. I need to get a life!

Hey, spewing CCP is a useful way to spend your free time. I wish more here would look up the laws before they give their opinion.
BTW, in Minnesota, you can get a mailed summons from the attorney before the case is ever filed with the court. If you ignore the letter you will be summoned at your cost like in CA but before they file the case, and if you ignore that you will get a default judgment when they finally file the case with the court. There is a long thread on MN law here.