To file or not to file?

[Battycrimson]

Hello I am new to this forum and I need a bit of advice on what to do with my Bankruptcy situation...I am a stay at home mom and technically single although I've been with the same person for 6 years. I owe roughly $37,000 in credit card and medical debt. I own nothing except a car thats maybe worth about $3,000. Its been about 3 years since I have made a credit card payment and got served a year ago. After receiving the summons I freaked and retained a lawyer. My lawyer is currently paid off but still need to take online credit counseling course and pay the filing fee. At this stage I am wondering if I should even file because won't it just reset that Bankruptcy clock when I am already 3 years in? Whats the worst that could happen if I don't file? I would get summoned to court but I don't work and I don't really own anything of value and if I am 3 years in of no payments won't it eventually come off like a Bankruptcy would do for me anyhow? Any advice would be appreciated because I am clueless on what to do.

[newbie2]

This is what could happen: Each of your creditors files a lawsuit against you, wins a default judgment (if you don't answer the complaint) and renews said judgment for as many years as your state allows. If you ever do work or own something of value they will decide it's time to collect.

Only you can make the decision about how much stress or "what ifs" enter your life. I'm not saying bankruptcy is the answer for you personally, I'm just pointing out what could happen.

[merime]

I am A LOT like you. I have debt , but no assets and did not know if filing made any difference. In my state they can not garnish wages. I figure IF i get a job and have assets I will then file. It would cost me $1,900 to file and I only made $6,000 last year. I am not working now. Everyone has their own 'situation", but I wouldn't be in a hurry. You do however have to think about the future. Like what will happen if you need a new car. I met a lady who was able to avoid being a victim to her credit score. These days so many people are going down , its almost in style. Can I ask how much you retained him for. If you want to PM me and discuss more details, I would be happy to share my story.

[oicu812]

here I was thinking I dont live in a payroll garnishment state(TX) and I can sweep my ever growing cc debt under the carpet.then I got served a lawsuit about one cc. soo I would have a judgment and lein on a house which I will not move from( I think ).
I still made a appointment with a lawyer to get some advice on what to do and my options (for a small fee of course) what I didnt know about TX is that if a cc/jdb/ca wins a judgment againt me they have every right to file a lein on house AND freeze and garnish my bank account...that I did not know! also what I did not know and it seems to be happening alot is if you work in a NON-payroll garnishing state..and there is another branch of your company that is in a payroll garnishing state they will go to that branch and start garnishing from there.
there is a post here or on creditinfocenter about what states can garnish and how much and license requirments for each state.I will find it and post it soon

[Battycrimson]

Hello and thank you for your reply...All in all my attorney cost $1,913.00 and thats including the filing fee. I guess ultimately I want to know if I don't file, how long can my creditors come after me? If I get a court summons I would show up but what can they get from me? I make no money and have no assets...is it possible for a judge to put a future judgment on me to pay when I may have a job? Don't know how likely that is but maybe the easiest thing to do is just to file and get it over with.

[free2breathe]

Every state has a statute of limitations on the collection of a debt. However, like newbie said, they can sue you and obtain a judgment. Once they have that judgment, they can continue to renew the judgment for as long as the laws in your state allow. Whether they will bother to do it if it looks like you have nothing for them to collect is the unknown. Some will keep renewing judgments because they can. Others will give up and eventually write it off.

From my own experience, I can tell you that I prefer not having that shadow over my shoulder. I like knowing that the debts I incurred have been discharged, and I'm free to start over as a wiser consumer. At the point where we finally filed our petition, we hadn't paid on credit cards for almost two years. I had more debt in my name than hubby had in his, but his creditor was the first to start the pursuit of a judgment (never got served, and we filed before anything else could happen).