Question HELP! Please!

[kgoo]

Hi all,

I had a hardship about 4 years ago after my husband lost his job. We lost our house in foreclosure after we attempted a short sale. I don't owe any money for the foreclosure. However, I have $20,000 in mostly credit card but medical debt also.

I just received a summons for court over 1 of the credit cards I owe. I have a child to support and as the only income now a garnishment would be horrible.

My husband and I recently split but I can't afford bankruptcy and divorce at the same time. The bankruptcy has precedent first due to court summons. He lives in a separate house and is not working. (1 of the reasons for the split - can't hold job but can run up bills) I am not denying my part either.

Would I be safe to file "married not filing jointly separate households". We no longer have a joint account but I have not had time to change the bills that are in his name into mine. I am above the median for Chapter 7 with less than $10,000 above median.

I have a meeting with an attorney Monday, but I'm sure as most of you know, it's hard to just sit and wait. Any advice would be appreciated.

Overwhelmed

[kgoo]

I forgot to add I rent my home. I don't own a home. I am still paying on my car which will be paid off next year.

[keepmine]

The means test is only step one. Have you filled out schedules I and J to see if you have enough monthly disposable income to fund a Chapter 13?
Here's a link to a site that'll give you a reasonable idea where you stand?

http://www.legalconsumer.com/bankruptcy/means-test/index.php

[Bell30656]

First, take a deep breath. Just because a creditor has filed suit doesn't equate to a judgement/garnishment yet. Laws are different state by state. I was served in November 2007 on my first civil suit, February 2008 for the second civil suit and November 2008 for the third civil suit. None of those civil cases had made it to court by the time I filed my bankruptcy in December 2008. Most importantly, I didn't spend anything except a few dollars on postage and a few dollars on photocopies.

Start with filing an answer to the lawsuit. Some debt collectors are just scavengers looking for the default judgements and the lawsuit could not have any further action until it winds up being dismissed from lack of prosecution. What I did to file my answer was go down to the courthouse. I looked up other cases with this plaintiff. Then I found one where an expensive attorney had filed an answer. I photocopied the answer, took it home and made a the changes to my name/case number/etc. and filed it.

A few months later, I received interrogatories. I did the same. Just for kicks, I made up my own list of interrogatories for them. I learned a lot and was able to get the needed delay. One other piece of free advice don't tell any debt collector you plan to file bankruptcy soon. The number one reason that most people haven't filed is because they are saving up money to file. If I was a JDB, I'd file in small claims hoping for a default judgement then try and seize the bank account where the money might be.

*NOTE* I am not a lawyer but I've seen a couple on television.

[kgoo]

Bell

I am filing my appearance and answer Monday. But CACH has included the affidavit of debt, transfer from original creditor WF and 2 statements with the summons???

[shotgun7]

Hi all,

I had a hardship about 4 years ago after my husband lost his job. We lost our house in foreclosure after we attempted a short sale. I don't owe any money for the foreclosure. However, I have $20,000 in mostly credit card but medical debt also.

I just received a summons for court over 1 of the credit cards I owe. I have a child to support and as the only income now a garnishment would be horrible.

My husband and I recently split but I can't afford bankruptcy and divorce at the same time. The bankruptcy has precedent first due to court summons. He lives in a separate house and is not working. (1 of the reasons for the split - can't hold job but can run up bills) I am not denying my part either.

Would I be safe to file "married not filing jointly separate households". We no longer have a joint account but I have not had time to change the bills that are in his name into mine. I am above the median for Chapter 7 with less than $10,000 above median.

I have a meeting with an attorney Monday, but I'm sure as most of you know, it's hard to just sit and wait. Any advice would be appreciated.

Overwhelmed

I would check out NOLO's mean test, it has all the info. Just because you are above the income does not mean you can not file you may have enough deductions.

http://www.nolo.com/legal-encyclopedia/chapter-7-bankruptcy-means-test-eligibility-29907.html

Also, as other have said, answer the summons, do not let them just get a default judgement. sometimes when you file a response, if it is a junk debt buyer if they see it could be a fight you can end up getting them to go away... and from all my research they are quite beatable. now if it is a OC, that is a little different.