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Lawyer in the House question


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This might fit better in the Bankruptcy section, so please move it if it does.

Long story shortened.

Was ready to do a Ch13 about 6 months ago with a 30% pay out over 5 years, on 42k unsecured debt.

Returned to work after nearly a year unable to work due to 2 surgeries.

Negotiated 10k to 2% int over 3 years, and settled 12k for 4500 outright last month.

20k has been charged off, and I was served with a lawsuit for the total amount, plus atty fees and court costs this past week.

I'm trying to crunch numbers to make an offer to settle the 20k before court (2 weeks)

If I understand things correctly, if I file, the 4500 comes back into play as preferential treatment of debts and will skew my payback % and ability up a bit from 6 months ago.

I guess my real question is, If I file ch13 and make the lawsuit a moot point, do the attorneys that filed the suit get to add their fees into the unsecured debt of my bankruptcy?

My reasoning being, if they will get nothing if I file, they might be inclined to accept an offer of 25-30% over 3 months or so and I might even sweeten the deal by adding an additional 225.00 for their "court filing costs"

Thoughts?

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Are you working now? Are you disabled? You can file BK anytime during the process so I wouldn't be so quick to file it. If you fight all these people you might be able to beat some of them with help from this place. Are these all original creditors or have any been sold off to debt collectors or buyers? There is a thread on here that tells you have to post your first thread with info that is needed to help you.

If you fight these people they may give you a much better offer closer to trial or you may be able to beat them. You can file BK anytime even have you lose and get rid of these guys.

Also, is there some reason you aren't filing a chapter 7? If you qualify I might do that at the end and wipe all this stuff out of your hair instead of trying to pay it. Give yourself a clean start as they say. I don't think there is really a difference on how it affects your credit rating.

Anyway, I would post some information about each of your debts according to the thread that asks why company is suing you, whether original creditor of CA or JDB. How much its for. Where you have verified the debt etc etc. It is probably a sticky thread.

Be sure to answer the summons! Most states give you limited time to answer. When/ if you have to answer in OK be sure to deny the debt no matter what has gone on before. I know more people will be along to help you.

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If it is third party collection fighting might make a better return. You tried to settle with them and now they have sued you. They did this to leverage you,

Now that the thing you tried to avoid has happened, It is welcome to Fight club the first rule of fight club is you do not talk about fight club, and if it is your first time you gotta fight.

hitting the ball back into their court gives you leverage if you learn quickly.

This is real court but you can win.

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