New here. I will sum up my situation and any advice appreciated.
I entered a DMP with a consumer credit counseling service to pay off about 60k in Credit Card debt after major life events made it impossible to keep up with payments. Long story short the monthly payment was too much, so the the DMP was cancelled and all cards were written off as charge offs.
1. Last payments to most of the CC were through the DMP in June 2015. So most cards officially charged off in Nov or Dec 2015
2. One item not included in DMP was a loan through Prosper. Charged off in 5/2015 14k or so
3. Since 11/2015 just been sitting on everything, took approach to pray no lawsuits etc. and make it to 2022 and have everything fall off CR. Credit already ruined so that was my initial approach. Painful , anxiety producing yes. Collection Letters, calls at all hours. None of which I responded to or do now.
4. Fast forward. May 2017. Cach LLC (i have heard all about them) sues me for 14k prosper loan they bought at a JDB . Filed early May. Still have not been served. I learned of suit first via a letter from an attorney advertising their services, so I checked court website, and alas it is there. Hearing set for early 2018. Obviously when I am served I will file and answer, as to not get a default judgement against me. I understand that CACH LLC would need to prove standing, chain of command etc. and is a JDB. In Philadelphia, the case goes directly to Compulsory Arbitration Program All claims less than 50k go to this process: https://www.courts.phila.gov/pdf/manuals/civil-trial/compulsory-arbitration-center.pdf
5. Since my whole strategy to avoid BK and just go the informal BK route, was to pray I wasn't sued, has gone to pot, what do you folks advise I do? I don't want to end up losing to CACH LLC and having a judgement. In PA they can't garnish wages, but can go after bank account. Not that there will be much in there after I am paid monthly it basically is drained to every penny. But the point is what do you guys advise now?
1. I have absolutely no savings to attempt "settling" other than maybe $500-1000 with CACH, LLC and I am assuming they won't go for this in exchange for deleting tradeline, dismissing with prejudice. Because without that, what is even the point. So my question is should I file BK now, or wait. Chap 7 or Chap 13? Or try to fight lawsuit? Not sure what the point of that would be, with all the other debts hanging over my head.
2. I own a paid off car that is a 2011 model kelly blue book 10-12k, minimal other items, and rent. I make just under the median income amount of 51, 138 for chap 7 in PA. I cannot lose my car as I need it for work, so would I have to go Ch 13? I know my car is over the "exemption" amount so how would that work?
3. I have very little disposable income, after rent, normal utilities, and about a $250 payment per month to IRS on installment plan which I have a few more years on.
4. One last question. What happens if I file BK to the lease and the apt I am renting. I have never been late on rent and have been here 5 years. Would it be best to tell landlord before filing (if I file) and ask them what they would do? Do they have to kick me out if I file? I do not owe them anything, nor am I late on any utility, etc. It is just the consumer items listed above.
5. And if filing, should I get an attorney and what would that cost to file in general?
Any helpful advice would be much appreciated.