So here's a little about my story- my husband and I were stupid the first couple years we were married. Ran up a bunch of cc debt on several different accounts. Now we have 3 kids all 6 years and under. In the spring of 2008 my husband decides we are going to contract with Freedom Debt Relief to help get rid of our debt. Horrible, horrible decision. Wish we would have done a lot more research before doing that. Anyway, we pay them $700 a month until my husband loses his job in August of 2009. Then we couldn't pay them that much. Called and explained our situation and eventually they decided to drop us since we couldnt pay them. We did get about $1800 from them as a refund, but we paid them a lot more for basically nothing. They helped on a few of our accounts, but not that much and they were a hassle to deal with. Now they are in a class auction suit!
Around the same time, we have to stop paying our HOA dues due to my husband's unemployment. End up being sued by them and are now in a monthly payment arrangement with them.
Since we signed on with FDR we were sued several times by different creditors-a few of the small ones we got paid off. We are now in payment arrangements with 2 of them. However, there are still several accounts out there that we could be sued for. In fact, I am being sued on a CACH, LLC/P. Scott Lowry account right now. I called and tried to negotiate with them and it's no use and they are RUDE. So I decided to file an answer pro se and fight back (can they prove they own the debt?). Did a lot of research on fighting this myself. Then they send me a letter via email stating they had obtained judgement against me- which they absolutely did not (I doubled check w/the court!) and all sudden the amount I owed went up by $1800! I decided to contact a lawyer for FDCPA violations. He said I could probably get them on two, but recommended filing for BK as well. He spent about an hour with us discussing suing Scott Lowry and BK. Something I hadn't seriously considered. But after he suggested that I did a lot of research and thinking about our situation and am 99% sure we will file within the next few months. He also told us the judge in my county is very pro-creditor and it's likely I would lose.
We also are behind about $8400 on our first mortgage and pretty sure our house won't appraise for more than what the first is. Probably will be stripping the 2nd in ch. 13. We got behind on the 2nd mortgage and they filed an insurance claim on it so now it's owned by United Guranty and we are in a payment arrangement with them to catch up on the arrears. And thankfully my husband is now employed again!
My husband talked to a different lawyer on the phone the other day. He told us that we need to hire an attorney ASAP and get the ball rolling. Highly recommended ch. 13 and didn't want to answer all of our questions at this point. He has a great website and rave reviews and is closer to our house.
The lawyer who recommended BK to us is much younger, seemed to be very knowledgable but was quiet and reserved. I am not looking to get a warm fuzzy feeling from a lawyer, but I feel like I at least need them to be a little friendly so I can feel like they are on my side and representing me and not judging me for being in the situation I am in. His office is farther away and I can't find any reviews on him. I emailed him a couple of follow up questions and he emailed me back within a few hours, but feel bad to keep asking questions if I am not sure we will go with him. I believe he is a bit cheaper as well- not that it really matters at this point. He told us we should wait to file til after we get our 2010 tax return- quite opposite of what the other guy said. I'm scared of having to give every single extra penny we have to the trustee (feel like I need a little wiggle room with 3 kids and healthcare and childcare, stuff breaking down around the house, etc). I told the lawyer this and he said that he can "show us some tricks to get our expenses up as high as possible" so we can pay the least possible. Would this other lawyer show us the same tricks?
So my questions are:
Which lawyer should we go with? My husband really doesn't care. The one he spoke to on the phone would not do the FDCPA lawsuit though.
If we start off with one lawyer and for whatever reason it's not going well, can we switch in the middle?
If we decide to wait until after we get our tax return to file- what happens in the meantime if this lawsuit with Scott Lowry progresses and I have to go to court?? Should I possible just settle and do a payment arrangement wit them since I know it's going to be a moot point anyway?
What happens if our mortgage company tries to forclose on us (we are also in the middle of a mod application with them, but from what I hear it's a long shot and they are a nightmare to get a mod from) before we file? It's with Aurora Loan services. Without a doubt we want to stay in our house.
Just seems like there is just so much to weigh and consider. Part of me would like to wait and see if we can get this mod done, or see if we can somehow catch up on the arrears ourselves and then maybe file ch. 7 instead. We are under the median income. We have two vehicles that are 100% paid off.
Any light you can shed on my situation would be so much appreciated! I am bad with major decisions like this and I keep going back and forth and what to do and when and who with. I really just want to make the right decisons and get back on the right track and be responsible. We owe it to ourselves and our children.
Around the same time, we have to stop paying our HOA dues due to my husband's unemployment. End up being sued by them and are now in a monthly payment arrangement with them.
Since we signed on with FDR we were sued several times by different creditors-a few of the small ones we got paid off. We are now in payment arrangements with 2 of them. However, there are still several accounts out there that we could be sued for. In fact, I am being sued on a CACH, LLC/P. Scott Lowry account right now. I called and tried to negotiate with them and it's no use and they are RUDE. So I decided to file an answer pro se and fight back (can they prove they own the debt?). Did a lot of research on fighting this myself. Then they send me a letter via email stating they had obtained judgement against me- which they absolutely did not (I doubled check w/the court!) and all sudden the amount I owed went up by $1800! I decided to contact a lawyer for FDCPA violations. He said I could probably get them on two, but recommended filing for BK as well. He spent about an hour with us discussing suing Scott Lowry and BK. Something I hadn't seriously considered. But after he suggested that I did a lot of research and thinking about our situation and am 99% sure we will file within the next few months. He also told us the judge in my county is very pro-creditor and it's likely I would lose.
We also are behind about $8400 on our first mortgage and pretty sure our house won't appraise for more than what the first is. Probably will be stripping the 2nd in ch. 13. We got behind on the 2nd mortgage and they filed an insurance claim on it so now it's owned by United Guranty and we are in a payment arrangement with them to catch up on the arrears. And thankfully my husband is now employed again!
My husband talked to a different lawyer on the phone the other day. He told us that we need to hire an attorney ASAP and get the ball rolling. Highly recommended ch. 13 and didn't want to answer all of our questions at this point. He has a great website and rave reviews and is closer to our house.
The lawyer who recommended BK to us is much younger, seemed to be very knowledgable but was quiet and reserved. I am not looking to get a warm fuzzy feeling from a lawyer, but I feel like I at least need them to be a little friendly so I can feel like they are on my side and representing me and not judging me for being in the situation I am in. His office is farther away and I can't find any reviews on him. I emailed him a couple of follow up questions and he emailed me back within a few hours, but feel bad to keep asking questions if I am not sure we will go with him. I believe he is a bit cheaper as well- not that it really matters at this point. He told us we should wait to file til after we get our 2010 tax return- quite opposite of what the other guy said. I'm scared of having to give every single extra penny we have to the trustee (feel like I need a little wiggle room with 3 kids and healthcare and childcare, stuff breaking down around the house, etc). I told the lawyer this and he said that he can "show us some tricks to get our expenses up as high as possible" so we can pay the least possible. Would this other lawyer show us the same tricks?
So my questions are:
Which lawyer should we go with? My husband really doesn't care. The one he spoke to on the phone would not do the FDCPA lawsuit though.
If we start off with one lawyer and for whatever reason it's not going well, can we switch in the middle?
If we decide to wait until after we get our tax return to file- what happens in the meantime if this lawsuit with Scott Lowry progresses and I have to go to court?? Should I possible just settle and do a payment arrangement wit them since I know it's going to be a moot point anyway?
What happens if our mortgage company tries to forclose on us (we are also in the middle of a mod application with them, but from what I hear it's a long shot and they are a nightmare to get a mod from) before we file? It's with Aurora Loan services. Without a doubt we want to stay in our house.
Just seems like there is just so much to weigh and consider. Part of me would like to wait and see if we can get this mod done, or see if we can somehow catch up on the arrears ourselves and then maybe file ch. 7 instead. We are under the median income. We have two vehicles that are 100% paid off.
Any light you can shed on my situation would be so much appreciated! I am bad with major decisions like this and I keep going back and forth and what to do and when and who with. I really just want to make the right decisons and get back on the right track and be responsible. We owe it to ourselves and our children.
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