What's going to happen with our creditors (credit cards)?

[mslaw]

Our bankruptcy is set to be dismissed in October. Per our attorney's advice, we stopped paying our CC's in May/June. When this is dismissed, we won't be able to pay any minimums. We will plan to refile in 6 months but until then, what are the CC companies going to do? We cannot afford garnished wages.

[HHM]

All you can do is lay low, and if you get sued, you fight it. (file an answer and delay).

Once the case is dismissed, it will take some time for the creditors to realize it and enter it into their system. They are NOT simply going to reinstate the account as if nothing happened, the creditors WILL consider you in default and treat you as such with collection activity. It is anyone's guess how quickly they would actually sue, but they will follow their normal collection process (phone calls, letters, and eventual lawsuit), whatever that is.

If you actually get sued, you want to file an Answer. Doing so will typically kick the case down the road 3-5 months. All said, with your unsecured creditors, you shouldn't have too much trouble buying yourself the 6 months you need without anything too terrible happening. However, if a creditor already has a judgment, I hate to say it, you are probably screwed.

[mslaw]

All you can do is lay low, and if you get sued, you fight it. (file and answer and delay).

Once the case is dismissed, it will take some time for the creditors to realize it and enter into their system. They are NOT simply going to reinstate the account as if nothing happened, the creditors WILL consider you in default and treat you as such with collection activity. It is anyone's guess how quickly they would actually sue, but they will follow their normal collection process, whatever that is.

If you actually get sued, you want to file an Answer. Doing so will typically kick the case down the road 3-5 months. All said, with your unsecured creditors, you shouldn't have too much time buying yourself the 6 months you need without anything to terrible happening. However, if a creditor already has a judgment, I hate to say it, you are probably screwed.

Can you explain what a judgment means? We weren't in default before we filed if that's what you mean.

And please explain "screwed". This situation is giving me ulcers and migraines. I really can't handle much more stress. Thank you.

[keepmine]

A judgment means you've been sued and lost and they can take whatever steps your state allows to collect.
Sounds like this hasn't happened.

[AngelinaCat]

Should you get sued you fight it. There are all kinds of steps to take, but this likely won't happen within six months. But whatever you do, do NOT ignore a summons from the court, if you do, the creditor will get a judgment by default.

[frogger]

We weren't in default before we filed if that's what you mean.

And please explain "screwed".

If you were not in default, then you should not have any judgments, therefore "screwed" should not be a part of your financial equation.

If you had a judgment, a creditor could immediately go for garnishment, hence the term you're "screwed".

Ulcers? Migranes?

Chill grasshopper. They're not going to come and whip you or eat you. You should have no problem for 6 months, so save your money and prepare to file again.

You'll be fine.........

[Postbankrupt]

CC companies rarely garnish wages. However, your attorney should be able to specifically speak to your circumstances. You are allowed a certain amount of money in your bank account as an exemption and in order to garnish your wages they have to have a judgment against you. You would be served a court summons before that happens so you will know about it. You should consult your attorney immediately if that occurs. Good luck!

[kornellred]

Once a judgment in in place, wage garnishment is the single most effective means of collecting on a debt. If your state allows wage garnishment, it will eventually occur. Some judgment holders solicit the attention of the debtor and offer to make some other type of payment arrangements. Then, if that fails, wage garnishment is eventually going to occur - again, where it is allowed. Seizure of funds in a bank account can occur any time once a judgment is in place, and you will not receive any notification about it. Once that happens there is nothing the debtor can do about it, even if a bankruptcy petition is filed.

[IHateChase]

They are most likely going to offer you ways to "work with you" for a while. You know, payment arrangements, we want to keep you as a customer, yada yada.....
Six months may not be a problem. You'll play it by here, come here for stall tactics if you need them.

Would really love to hear about that $37 some time.