Served papers

[staylor]

Long story short: Owned S Corp. went insolvent. closed down. owe 400,000 in debt with me as personal guarantor.
I was served today with papers to answer to the court for judgement. I have already talked to BK lawyer but dont have money to fight law suite. WHAT should I do. Do I personally answer complaint or just let it go for default judgement while attorney is preparing papers for chapter 7 bankruptsy?

Thanks for advise.

[tobee43]

i know we had an s and filed both business and personal...separately.

i would let your atty handle it, that's what they are being paid for!

[staylor]

He wants more money to handle the law suite. But will place them on my BK. Does that make it ok?

[tobee43]

He wants more money to handle the law suite. But will place them on my BK. Does that make it ok?

yes, because as soon as he/she files an automatic stay goes into place ceasing all legal action against you.

usually when served a summons you have some time to answer that summons. depending on your time line, you can answer, if that helps stall the action, and or if let's say your state gives you 30 days to answer....(it does vary from state to state), but really all you have to do is list the docket number of the suit on your petition.

also, worse scenario, is that if a judgment does go through, you would, after your discharge, file a motion to vacate that or any other judgment. each judgment you have needs a separate motion filed, so again the legal fees can begin to add up. hopefully, you can keep them at bay until your filing!

[staylor]

Thank you. Let me make sure I understand this. Best is to file BK and list doc # on BK before they get judgement. If not then file a motion to vacate after judgement. One Concern is for them to stall Bk in 341 meeting to try to get me to pay.

[tobee43]

Thank you. Let me make sure I understand this. Best is to file BK and list doc # on BK before they get judgement. If not then file a motion to vacate after judgement. One Concern is for them to stall Bk in 341 meeting to try to get me to pay.

you mean an Adversary Proceeding...yes, any creditor can file one. however, usually if they can't prove fraud you may have a chance of winning. we won two. so the creditors don't always win. that being said, some most certainly do, and depending on your personal situation , if that happens you may find yourself having to settle the matter.

has your atty told you if they are filing a chapter 7 no asset, a chapter 7 asset, a 13, and 11 an 20?????

[staylor]

Yes a Adversary Proceeding. He just said a chapter 7. Business. lose all my debt and start over.
Its Wells Fargo and I know they will try anything. I went insolvent because of my deployment to afghanistan. They took my equipment back 1 month after my return. They have been very ruthless and didn't want to give me anytime to try and rebuild. I don't understand thier non willingness to work with me. But I guess now they have taken all business assets back and destroyed my business they will get nothing.

[tobee43]

well in an adversary proceeding they are going to have to proof fraud. however, they may insist on taking back the property is that is still considered an asset..but if they already took back your equipment, i just don't get it.

also, i do believe the courts have some sympathy if not at least some understanding on the people of this country that were deployed to fight OUR fight. (don't get me going here!) . i can't believe wells fargo would do that and not work with you under those circumstances. they are supposed to be making some efforts for those that are returning. i can't stand it!

i think if i were you, i would hope you would get a sympathetic trustee if an AP did arise.

[staylor]

Thanks. I couldn't believe they were doing it either. She said the only reason they waited was because they couldn't take it back while i was in afghanistan but now that im back they could. I begged them not to and I said that according to the letter of the law I was not even late on a payment yet. (deferal for deployment). She didn't care. SAD. Thanks for your support and help

[tobee43]

Thanks. I couldn't believe they were doing it either. She said the only reason they waited was because they couldn't take it back while i was in afghanistan but now that im back they could. I begged them not to and I said that according to the letter of the law I was not even late on a payment yet. (deferal for deployment). She didn't care. SAD. Thanks for your support and help

please, call your local newspaper. your story is breaking my heart really.

i'm so sick to hear this disgraceful disregard of our men and woman that have put they lives in arms way for us. i want to call the newspaper, cnn, nbc, cbs ...and while i'm at it the president! just sickens me and i want to tell you how much i have appreciated your service for this country, what ever little that is worth. i am indebted to you and very much respect, appreciate and am in awe for your service!

[staylor]

Thanks again. Its always good to hear our service is appreciated. Thanks for being a great American. The laws that are written are to protect the individual but not the business they own. I've gone over it with JAG. They said I can do nothing to about it. They said to change the laws to protect the business of the Veteran that are called to serve. I wrote a letter to both the governor and to the Senators and to even John Mccain. I haven't had a single response. But because I was personal guarantor on my own business they can go after me. Hence the only reason I have to declare BK.

[tobee43]

Thanks again. Its always good to hear our service is appreciated. Thanks for being a great American. The laws that are written are to protect the individual but not the business they own. I've gone over it with JAG. They said I can do nothing to about it. They said to change the laws to protect the business of the Veteran that are called to serve. I wrote a letter to both the governor and to the Senators and to even John Mccain. I haven't had a single response. But because I was personal guarantor on my own business they can go after me. Hence the only reason I have to declare BK.

i understand, but just because i do, i find i have had to use this phase more often lately, it simply makes my blood boil.

many of us appreciate those that safeguard our country. you need to know that...but the banks have no mercy on anyone. the greed, is so overwhelmingly this behavior and these indiscretions brings ignominy to the leadership that allows the banks to do this to our vets.

sorry, i, just so feel badly for you and yours, our prayers are with you. and, don't forget, just keep posting and venting here on this forum. you will find support and a helping hand or two most anytime you need it!!!

[keepsmiling]

Tobee, great idea. Make a LOT of noise!!!! Love it, do a 60 minutes spot, call the local radio guys, whatever!!!!
There is not enough shame in the world to heap on the banks and their incessant greed. WF seems to be one of the more particularly obnoxious ones. Glad I haven't had any dealings with them.

[tobee43]

Tobee, great idea. Make a LOT of noise!!!! Love it, do a 60 minutes spot, call the local radio guys, whatever!!!!
There is not enough shame in the world to heap on the banks and their incessant greed. WF seems to be one of the more particularly obnoxious ones. Glad I haven't had any dealings with them.

don't i wish. you know, when they start doing this to our vets, our elderly, our children. when is it enough????? i know that's just rhetorical, but it's just downright morally and ethically wrong!!

sorry about the venting!!! but enough is enough!

[staylor]

Here is a kicker that might push you over the edge. I just have to laugh or I would cry. JAG tells me that if I do decide to file a personal bankruptcy that I will loose my Security Clearance and most likely they will remove me from the military because of it.
Soooooo my country asked me to serve and I did proudly, which resulted in me losing my business, which caused my to file bankruptcy which in return causes me to lose my career in the military. Does anyone see something wrong in this?
If I don't file for bankruptcy then I will spend the rest of my life paying for a debt that I can never pay off and living on a salary that is being garnished every payday that is not enough to live on. I understand why Vets live on the streets. What choices are we given. Used, abused and stripped of all we have, then given no protection to defend ourselves. I cannot even get the military to pay for my legal concerns that they caused.
Sorry but I needed just one second to vent....... I hate to complain. I have always met my challenges head on and survived. I will this time too.