Why do some people wait so long to file?

[momofthree]

They can send you to collections. They can take you to court. They can garnish your wages. They can seize your bank account. That is what they can do if you don't file.

Seamoonil: They have to get a judgment before they can garnish wages or touch your bank account. You're still current on your bills right now. If you don't pay them another dime until you file in July, you should be fine. That's only 4 months away. It normally takes at least 6 months before they attempt legal action against you. And knowing that you don't have any assets, and a very low paying job, they may not even attempt it at that point.

[tigergem]

Yes, that's all true. But if you have no money in your bank account and your are not working, that's basically a hollow threat. You can't get blood from a stone. So wait to file until you do have something you need to protect, like a decent job.

She said she is working and has a small income. If they garnish that, then she will have what? 75% of a small income?

[Mensa1]

She said she is working and has a small income. If they garnish that, then she will have what? 75% of a small income?

After the min wage amount is exempted, or 30 hrs at min wage = 225 wk exemption, then 25% of the excess can be garnished. Certain states do not allow garnish of wages, while others like FL exempt head of household providing more than 50% of support for family. So it depends on state and many more details whether creditor can garnish or not, after obtaining a judgment.

[MakinMeCrazy]

Hi!
here is our reasons for waiting...

Oct 23 ...husband who is on retirement lost part time job


Nov 15 retained BK lawyer cause we KNEW we were in deep trouble!


Dec 24 had minor car wreck on ice, the person we hit... a flat tire....
our car total new front bumper need $3723 WE had to pay a $1000 deductable PLUS a ticket Plus part of rental car fees!!!!


Jan pension GONE for the above, had to miss house payment!

Feb ..made a double house payment leaving us with about 125 after utilities and other expenses! NOT including food!

Mar found out we need a RACK for our old car....$850 plus tax!!!!!!

soooooooooooooo...pension check for April.SPENT PLUS...we still owe attorney $700

So you can see we had a series of most unfortunate events! Hopefully we will be able to file in July....HOPEFULLY
for us its just one thing after another! I AM SO TIRED OF IT

[nc73]

Yes, that's all true. But if you have no money in your bank account and your are not working, that's basically a hollow threat. You can't get blood from a stone. So wait to file until you do have something you need to protect, like a decent job.

But what if the decent job you get prevents you from filing because you fail the means test? I think the best time to file is when you have no job, if your family is healthy that is.

[flyinbroke]

But what if the decent job you get prevents you from filing because you fail the means test? I think the best time to file is when you have no job, if your family is healthy that is.

You are never prevented from filing due to income...they just take it all in a 13 instead of getting the 60 day fresh start of a 7. However, it may be better to deal with a 13 than to file a 7 with nothing, find yourself in trouble all over again, and not be able to file at all for several years. Plus collectors really can't touch you if you have nada; they are just weeing into the wind. Once you have income that they can touch, then it is better to have the trump card of BK in case of legal action.

[montana59451]

We waited 9 months because we were trying to do a loan mod with B of A. Finally got the permanent docs and singed off in early Feb. We knew we needed to file BK last June, but the house was more important (besides we are doing CH7). We actually would have been much better off to have filed right away in June but....it's all done now. Time to move on!

[flyinbroke]

I am sort of on the fence though I made appointments...I have no choice but a 13, but can pay MOST of my debts. I also live in a state where garnishment is not legal and happens to be debtor friendly.

However, regardless, I would have to wait at least six months because my taxes are thru the roof, and I need exemption changes to kick in. CLDs dropped my credit score before I stopped paying and my insurance rates shot up 50 percent as a result. Gas and food is going up, too. I may have to wait longer since I am sure my rent will shoot up at renewal time. You need to get favorable terms in a 13 or else you are doomed to fail.

[dianissima]

Montana, we are in a similar situation and it is so hard to decide if we must wait because BOA will not cooperate with us at all. I have few questions and appreciate your time:
Was your Mortgage underwater when you started the Loan Mod? Were you current on your mortgage ? How exactly you did Loan Mod? Yourself or with attny?Thanks!

[pileated]

My husband (who should be filing this week) waited a long time to file. He was in denial, thinking that his ship would come in, basically.

[montana59451]

Montana, we are in a similar situation and it is so hard to decide if we must wait because BOA will not cooperate with us at all. I have few questions and appreciate your time:
Was your Mortgage underwater when you started the Loan Mod? Were you current on your mortgage ? How exactly you did Loan Mod? Yourself or with attny?Thanks!

We did our own mod. No one fights harder for your home than yourself. I found the following website loansafe.org and using the information and support of almost 20,000 members who are working on the same deal finally got an in house mod. We did not qualify for HAMP. No we were not current we were 3 months behind, isn't everyone's house underwater?

First are you current on your mortgage now? You CAN be eligible for HAMP if you are doing BK, but I do not know if you have to be pre-qualified for HAMP and in a trial period first. We applied in June but had to email the Office of the President first before we got escalated into the trial program. We did not get our permanent mod (in house) for 9 months.

The first step you should take is to visit loansafe.org then call Bank of America and get pre-qualified for loan mod. You will find all the info you need along with just about every phone number and email for the powers that be on loansafe. Do not waste your money on an attorney to do your mod!

Good Luck

[out4good3]

There are many reasons to wait. Here are the ones I can think of immediately:



4. If there has been a recent decrease in income, wait for the higher income to be 6 months back in order to pass the means test for Chap 7 or to decrease the plan payment for Chap 13.

This is exactly what I did. To decrease the payments for my Ch 13.

[discouraged]

Even though I am unemployed, I just wanted it over with. I had seen a lawyer who, once I started a (give me a break) 12.36 hr temp job, made it sound like I would then be over the median. Chose a different lawyer - which I eventually did. But the first one scared me enough because I'd finally 'found' work, that once the job was over, waited a couple months and then just got it over with.

Wish I'd done it right after I was first unemployed, before taking out my pension and paying creditors with that money.

[sunshinepa]

I see a lot of posts where people say they waited six months, 12 months or longer to file after stopping payments. Once you know your filing is inevitable, why would you wait so long to file?

John

There have been many responses on why people wait. I know why I did, large BTs however, I believe my response to your question would be that each of us have our own set of circumstances and have to file when we feel the time is right. WE are individuals and each of nobody knows our circumstances better than ourselves.

This forum has helped many people who could have been denied a discharge, been forced in CH13 when a 7 was possible,and etc. if they filed under certain circumstances. I myself would have filed and probably had an AP if not for this forum and the knowledge here. That knowledge allowed me to wait until a reasonable time had passed since my BT.

Each of us is different.

[lillymarlene]

I see a lot of posts where people say they waited six months, 12 months or longer to file after stopping payments. Once you know your filing is inevitable, why would you wait so long to file?

John

Why? I just thought that filing was something that I just would never do. For quite awhile I knew I was in trouble, but I was terrified, this is such a life altering decision. Finally after about a decade of robbing Peter to pay Paul, taking the bk plunge seemed to be my only option left.

Then attending the "pre-trial" phase of a lawsuit against me, finally forced my hand, and made me realize that there are worse things that could happen than going bankrupt.