Ahhh... small claims noitce from my credit union.... Help, Help, Help!!!!!!

[LadyInTheRed]

Please help me to understand... is it merely for single items over $500 every time, or is it for small things adding up to over $500 over the past 90 days?

It's over $500 to any one creditor within 90 days before filing, whether it is $501 in one charge or 6 charges of $100 or any other combination totaling over $500. This is covered in section 523(a)(2)(C) of the bankruptcy code which you can read at: http://www.law.cornell.edu/uscode/text/11/523 If you are going to file pro se, you might as well get used to reading the law yourself. Always independently confirm anything you read here. People do post incorrect information. We all try to correct each other, but I'm sure errors get missed.

ETA: And if you are talking about purchases and not cash advances, the purchases must be for luxury goods and services to be presumed nondischargeable.

[AngelinaCat]

Please help me to understand... is it merely for single items over $500 every time, or is it for small things adding up to over $500 over the past 90 days?

You have to disclose all of your debts. However in the matter of how to list these items--no, you do not list every single charge on your credit card. List the total. Say you have a Xxxxx-Mastercard with many small charges, you list the total that you owe to the credit card servicer, in this case, Xxxxx -Bank. Xxxxx -Bank paid all of your small charges, so you owe Xxxxx -Bank the money for all of the 'little loans' you took out, when you used that credit card. That was a hypothetical example.

ETA: My laptop froze and I had to close down and reboot, so LITR posted before I could. We have answered several aspects of your questions. I was talking about small little charges on one card; not cash advances, or luxury purchases either.

[LadyInTheRed]

You have to disclose all of your debts. However in the matter of how to list these items--no, you do not list every single charge on your credit card. List the total. Say you have a Xxxxx-Mastercard with many small charges, you list the total that you owe to the credit card servicer, in this case, Xxxxx -Bank. Xxxxx -Bank paid all of your small charges, so you owe Xxxxx -Bank the money for all of the 'little loans' you took out, when you used that credit card. That was a hypothetical example.

Right. And, if you have a balance that was incurred over a long period of time, you would say that the debt was incurred between certain dates. I had several debts listed as being incurred over a number of years. One debt was listed as incurred 4/2000 through 4/2010, even though I did not actually charge anything in 4/2010, the month in which I filed. But, since interest was accruing it was still accurate to say the debt was incurred through that date. It's not up to you to provide the details to show that the debt is not dischargeable. It is up to the creditor to notice that and petition the court to confirm it is not dischargeable.

[aaengel]

As for all of those little charges.... how is it viewed if I file before the 90 days? I understand they're reasonable for necessary things and won't necessarily go after you, but could those necessary things include my eating out? (And again, when I say eating out, I'm either at work, or at school, thus I don't usually take a packed lunch... I just either buy it at a restaurant or at the cafeteria's on campus).... or buying gas for my car....


I'm looking at all of the bankruptcy forms that I got the other day, and my head is spinning.... it's a monster....

[aaengel]

Ok, I'm thinking right niw I'm going to wait the 90 days out.... thus I'll have to answer the court date...

Angelinacat.... is what you stated, going to work in a court in Michigan? Can I legitimately use that (I neither affirm or deny this debt)? Is there anything else that anyone can help me with? What's the likelihood of stalling this until late May?

Or should I do what my father told me to do.... take my pay stubs, tell the judge the truth (father told me to get my story straight, but I don't want to lie), and see if the judge would be lenient and stop the credit union from pursuing me? Originally the two reasons why I got rid of the car was because the engine was failing (would have been at least $2500 to have a new one installed at a shop), and because of work slow downs, going to school, and having to pay for fuel, plus living costs, it put me beyond my ability to easily pay my debts.... (My credit card debts are over $20,000). I owe the credit union $2500 + costs for the deficiency on the car loan....

[8forme]

As for all of those little charges.... how is it viewed if I file before the 90 days? I understand they're reasonable for necessary things and won't necessarily go after you, but could those necessary things include my eating out? (And again, when I say eating out, I'm either at work, or at school, thus I don't usually take a packed lunch... I just either buy it at a restaurant or at the cafeteria's on campus).... or buying gas for my car....


I'm looking at all of the bankruptcy forms that I got the other day, and my head is spinning.... it's a monster....

How in the world is eating out NECESSARY???? I am having a hard time wrapping my mind around how you can justify that as necessary when you can't pay your bills. It matters not that you are at work, or school....get a cooler bag and pack your food. If you can't take it in with you, leave it in the car and go out and get it when it is time to eat.

It sounds like you are not really wanting to help better your situation. Maybe you are not ready yet, I don't know? But you have to get your priorities down first as to what is truely a WANT versus a NEED. Eating out is NOT a need no matter how you try to justify it.

[SMinGA2]

You have continued to rely somewhat on credit cards. Once you file, you won't have that option any longer. Figure out now how to live without them. You don't want to wait until you have filed to start learning that lesson, or it will lead to financial trouble. Bankruptcy should be your fresh start, but that won't work if you continue to spend more money than you make. If 'eating out' is what is causing your shortage, find a way to cut that expense.

[OhioFiler]

You can petition the court for a delay. Notify the court that you need more time to prepare your answer to the plaintiff. They will allow you extra time and reschedule the hearing for a later date, probably a month out or so. If the court needs a reason, tell them you are seeking an attorney to handle the case for you.

[keepsmiling]

Not to be a pest, but today would be a good day to go see if there is a microwave somewhere at school.
I know it takes time to get used to new ideas. Change is hard for everyone.
You will wind up eating better, healthier and cheaper.

[DesdemonaB]

This is small claims court - the OP needs to one of the following to delay the court date:

submit a DC86 form Demand and Order to Remove - this would remove the class from small claims to civil were you can have a lawyer represent you. - you can even bring the DC86 form with you on the 6th and case will not be heard and moved to civil court - creating a new court date in your county's civil court.

you show without the DC86 and the judge could order mediation prior to the case - where you can discuss installment payments etc.

you show and attempt to prove the debt is not yours - or why you don't believe you own the money - if you come in and say yes that's my debt but look I don't have any money to pay it the judge can/will still order you pay because you admitted you owe the debt. Watch a couple of People's Court you'll get the idea.

Good Luck

[LadyInTheRed]

As for all of those little charges.... how is it viewed if I file before the 90 days? I understand they're reasonable for necessary things and won't necessarily go after you, but could those necessary things include my eating out? (And again, when I say eating out, I'm either at work, or at school, thus I don't usually take a packed lunch... I just either buy it at a restaurant or at the cafeteria's on campus).... or buying gas for my car........

How will they be viewed by who? The only thing that matters initially is how the creditor views them in making a decision whether to object to the discharge of the debt. I'd say eating out is a luxury. But my opinion has nothing to do with anything. The creditor will also look at whether it is worth filing an objection to discharge. If you end up having to fight it out in court, what's important is how the judge looks at it. The best way to know that is to consult with a local bankruptcy attorneys who are familiar with the judges in your court or review past court decisions on the issue, if you can find any.

I'm looking at all of the bankruptcy forms that I got the other day, and my head is spinning.... it's a monster....

Yes. Representing yourself is going to be a lot of work. I strongly recommend you find a way to pay an attorney.

Ok, I'm thinking right niw I'm going to wait the 90 days out.... thus I'll have to answer the court date...

Angelinacat.... is what you stated, going to work in a court in Michigan? Can I legitimately use that (I neither affirm or deny this debt)? Is there anything else that anyone can help me with? What's the likelihood of stalling this until late May?....

I could be wrong, but I don't think AC's method will work in a small claims court. Court procedures vary by state and not all courts in all states will send litigants to mediation. My guess is that if you go in and say you neither affirm or deny the debt, the judge will look at documentation that the plaintiff brings in and enter an order against you. I suggest you read DesdemonaB's post as she appears to know something about Michigan Small Claims Court procedures. Also, read the court website I linked to earlier in this thread for information on Michigan small claims court. That should give you some ideas on how you can buy yourself some time. [ETA: Desdemona posted while I was still working on my post. I would defer to her on anything related to Michigan court procedures. It sounds like there is a possibility the judge will order mediation].

Or should I do what my father told me to do.... take my pay stubs, tell the judge the truth (father told me to get my story straight, but I don't want to lie), and see if the judge would be lenient and stop the credit union from pursuing me? Originally the two reasons why I got rid of the car was because the engine was failing (would have been at least $2500 to have a new one installed at a shop), and because of work slow downs, going to school, and having to pay for fuel, plus living costs, it put me beyond my ability to easily pay my debts.... (My credit card debts are over $20,000). I owe the credit union $2500 + costs for the deficiency on the car loan....

The judges job is to decide whether you owe money to the credit union. Leniency plays no part. The judge won't care whether you are able to pay the debt or why you defaulted on the loan and allowed the car to be repossessed unless your reason for default is somehow a defense to owing the debt. If the plantiff has evidence that you owe the amount they claim, the judge finds it convincing and you have no legal argument that you don't actually owe the amount claimed, the judge will enter a judgement against you. Your ability to pay is irrelevant to the judge's decision. It's the credit union's problem to figure out how to collect.

You can petition the court for a delay. Notify the court that you need more time to prepare your answer to the plaintiff. They will allow you extra time and reschedule the hearing for a later date, probably a month out or so. If the court needs a reason, tell them you are seeking an attorney to handle the case for you.

It may or may not be possible to get the hearing rescheduled. Call the court to find out. But, if you need to give a reason, saying you need time to prepare an answer may not work since the Michigan Small Claims court doesn't require a written answer. Saying you need to seek an attorney won't work to reschedule a date in small claims court because you aren't allowed to be represented by an attorney in small claims court. If you want to be represented by an attorney, you have to petition to have the case moved to the general civil court. You then have to file an answer 15 days after the order is entered to move the case. This is one possible way of buying some time that I learned on the website I linked to.

Not to be a pest, but today would be a good day to go see if there is a microwave somewhere at school.
I know it takes time to get used to new ideas. Change is hard for everyone.
You will wind up eating better, healthier and cheaper.

Yes. That's excellent advice.

Today would also be a good day to make appointments with a couple of bankruptcy attorneys for free consultations, even if you don't plan to hire one.

[aaengel]

Well, I bought a good lunch sack thing, and yes, there is a microwave at school....

Basically the question pertaining to the food debt was to see how the creditor would view it, if I didn't wait the 90 days....

Now, with what I read in that other thread regarding Chase slowing down on consumer debts, what's the likelihood they wouldn't come after me? If I'm able to pay back enough money (but below the $600 limit), would that look ok?

Unless if I could get pro bono help, a bankruptcy attorney is not affordable. So please continue to help without me having to get an attorney.

[LadyInTheRed]

Unless if I could get pro bono help, a bankruptcy attorney is not affordable. So please stop telling me to find one.

Sorry, but you can't dictate the advice people give you. It's up to you to decide what advice to take and what advice to ignore.

Some will say that if you truly can't afford a bankruptcy attorney, you don't need to file bankruptcy because you have no assets or income to protect from creditors.

Again, you need to go for FREE consultations with bankruptcy attorneys and get some advice on when you should file and if you should file. It may take more than one consultation to find an attorney who will give you much specfiic information and advice during that initial meeting. But, keep trying.

Don't rush into a prose filing because you fear a $2500 judgement. You can make mistakes that will put you in a worse situation than you are now.

[OhioFiler]

I'm sorry but this character is a train wreck waiting to happen.

Expecting others on here to walk you through your bankruptcy doesn't seem fair, smart or right. Get an attorney or get a NOLO book, figure out what you're doing then come back with questions after you have a generally good idea what the process is. Simply expecting people here to walk you through your filing is a poor strategy.

[TrainWreak]

I'm sorry but this character is a train wreck waiting to happen.

Expecting others on here to walk you through your bankruptcy doesn't seem fair, smart or right. Get an attorney or get a NOLO book, figure out what you're doing then come back with questions after you have a generally good idea what the process is. Simply expecting people here to walk you through your filing is a poor strategy.

I agree, you don't want a train wreck!