crnbread73 Posted December 1, 2008 Report Share Posted December 1, 2008 I am interested in calling the CA to offer a settlement on debt owed. I am going to threaten Bankruptcy at this point because it is our only other option. We do not have any income other than my unemployment and are moving in with my parents at this point in time. We have no changes in sight with the economy. What are the chances that they will want to avoid court? At this point we might even qualify for a ch 7. Will they being willing to do this since they stand a chance of getting nothing? Link to comment Share on other sites More sharing options...
Denita Posted December 1, 2008 Report Share Posted December 1, 2008 crnbread73, their response will be interesting. I have noticed, because I filed CH 7 BK in 9/2008 that several of the creditors don't care if you file BK. In fact, several creditors have completely ignored the automatic stay. A lot of the impact of what you will say to the collector depends upon the knowledge of the collector. I ended up turning over to the attorney for violations three collectors that have continually sent collection letters after the filing date. At least one of them states that they are not subject to fed BK law, which is not true as they are not one of the exceptions (taxes, student loans etc). Maybe you will have a better response from your creditors. Link to comment Share on other sites More sharing options...
nascar Posted December 1, 2008 Report Share Posted December 1, 2008 Will they being willing to do this since they stand a chance of getting nothing?If you really are considering BK, why worry about paying at all? Link to comment Share on other sites More sharing options...
crnbread73 Posted December 1, 2008 Author Report Share Posted December 1, 2008 This is the only one that is suing and the sol is almost up for the others. I really wanted to avoid BK but I talked to the CA today and told them that we have nothing and they said we needed to put $400 down and then large payments but I said we don't have anything and he said let me know who the BK atty is. So I guess that is the answer. We don't have assets but I guess we will file for ch7. I think the Ca thinks that we will do ch 13. Link to comment Share on other sites More sharing options...
Denita Posted December 1, 2008 Report Share Posted December 1, 2008 Crnbread73, don't react to the CA. If you put a little more of your situation here for us to review then maybe we can give you a better answer. You might try the Bankruptcy forum here on CIC. Post your income, your debt and the CA that is pushing you. They usually push the hardest right before the debt is SOL and when they have little to no info on your debt. Just like a bully. Link to comment Share on other sites More sharing options...
crnbread73 Posted December 2, 2008 Author Report Share Posted December 2, 2008 well our monthly income is 1208 (at least til Unemployment runs out) My mom has been giving us money to pay our bills. My hubby defaulted on this back in summer of 2006 so SOL is summer 2009. It is for CAP One and the CA is Legal Recovery Law Offices. They are shaddy that is for sure. They refuse to listen. I have talked to some attys today regarding BK and they state that if they contact CA possibly can work out a settlement but CA won't settle directly with me. BK will be hard for me because my mom has been giving us money and we have been depositing it into our bank acct. Sad thing is that the amount that they sued for was $800 and at the time he was served our plan was to save up and pay it (atty fees and all) but he got laid off and now that is out of the question. And my mom was just giving us enough to pay basic living expenses and nothing extra. So we will see. They just refuse to accept anything that we can afford. They wanted us to sign a stip back in the beginning and I am glad we didn't do that because at this point what would we do. They would have their judgment already. Link to comment Share on other sites More sharing options...
Denita Posted December 2, 2008 Report Share Posted December 2, 2008 When did Cap 1 sue you? How much was it for, the $800? Is this the only debt or do you have more? Is the $800 yours or is it a lesser amount with a bunch of fees added by the CA? Are you working? I see hubby is unemployeed right now. BK is not going to help you if all you have is unemployment income at this time, especially since you have been getting funds from a family member. BK gets rid of debt and protects assets, but does not solve an income issue, which that is what seems to be your main problem right now. Do you have assets (car, house, 401k, stocks, etc)? You might actually need to get jobs before you file because if you file now there is post petition debt that needs to be paid (rent, electric, living expenses etc). Don't file too soon. Take some time to figure out all of your current expenses. Then also figure out all the debt, past due balances and 'stage' (collections, lawsuit, etc). Once you figure out your budget, you then need to figure out what you are going to do in the short term and the long term to meet the budget. Seeing it in black and white really helps formulate a plan. The $800 is so small that most attorney's may not handle it for you at all, or by the time you pay the attorney you could have paid the debt. Sounds like the CA/JDB you are being sued by is banking on that. Is it a suit now or is the CA just threatening you with a suit? If it is just a threat, you have time. Please don't panic. CA's love to say something to get you scared into action. Please take a moment to post the answers and we can help you more (for free!). There are options. Link to comment Share on other sites More sharing options...
crnbread73 Posted December 3, 2008 Author Report Share Posted December 3, 2008 ok. Cap 1 is just one of the debts. But they are the only ones that are suing. All of the cards are very low balances. The amount listed on the complaint is $800 plus fees. Of course the $800 includes tons of late and over limit fees as usual. This was defaulted on back in 2006 (mid summer). And I am not sure how BK will not help us since we have no income. We are moving in with my mother this weekend so post BK debt will be close to nil. We will have our basic expenses but no rent, eletricity etc. We will have to contribute something but not as much as we have to pay now. And I thought that BK CH 7 was for people in our situation. We don't know when my hubby will be back to work. I know that at this point in time that the CA can't collect a judgment but they will be able to once my hubby is back to work. And hubby is being sued. Court is on the 12th. They changed it and didn't notify us. Thank goodness I called. I am just trying to protect my UE is they go into my bank acct then I won't be able to buy diapers for my child. We are a family of 3 so I know we are allowed somethings. Link to comment Share on other sites More sharing options...
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