joseywales

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I have three cases (credit card) lawsuits currently pending for a total of about $50k. Do I qualify for BK if the creditors are awarded the lawsuits? What do I do to get started making the best decision?

I am not even sure what questions to ask so I am open to questions.

Ty,

JW

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File now that will end it.

Talk to BK attorney they will help you make the right choice.

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Because of the BK reform that congress passed a few back, you have to pass a "means" test that determines whether youi can file BK 7 (which wipes out all your debts except student loans and taxes) or you are forced to file a BK 13 (where you have to pay your creditors all or part of what you owe over a 3 or 5 yr period).

 

Each state also has laws that define what property you can hang onto...BK "exemptions".

 

Today...go talk to a couple of BK attorneys...find one you feel comfortable with.  They will explain the process to you.

 

Once you file, those lawsuits stop...

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The means test is just step 1. You still have to fill out schedules I and J to determine if you have enough disposable income to fund a Chapter 13.

It's not unusual to be an above median filer and get a Chapter 7 discharged due to the expenses.

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I have three cases (credit card) lawsuits currently pending for a total of about $50k. Do I qualify for BK if the creditors are awarded the lawsuits? What do I do to get started making the best decision?

 

Well, let me preface with the fact that I am not a Lawyer and that none of this is meant to be construed as legal advice. But here is what I've learned by going through the experiences of fighting lawsuits and prepping for my Chapter 7 BK filing:

 

The way I am understanding it is that you can pretty much file BK either before the creditors win (i.e. get awarded a judgment against you) or after. It is far better to file BK before any creditors get a judgment against you. If you do a post-judgment BK filing, the creditors cannot actively collect on a judgment, so the wage garnishment and that stuff stops. They're limited to something called "in rem" remedies, meaning they could put a lien on your house (if you're a homeowner), so you could not sell or refinance before paying them off. If you file BK before any of the creditors is awarded a judgment against you, then you can avoid these types of  situations :-).

 

Do speak with a good BK attorney, as BK can be tricky, and you can easily lose assets if you don't have a good Lawyer. My attorney is about to file the BK for me in a few weeks, so I am in a similar predicament. But, I did fight the Lawsuits first before deciding to file for BK. The BK makes Lawsuits stop (the automatic stay) dead in their tracks as soon the petition is filed with the Bankruptcy Court. Then, when your BK is over (it takes several months, I think) those debts are discharged, provided that you've listed them on your BK petition. Make sure you do a free consult with several attorneys (it's very important to talk to at least 3-4 of them. Almost all of them give a free consult. Don't settle for the 1st one you find. I can't stress that enough), so to get an idea if the BK exemptions are high enough to protect your assets. For example, with California System 1 set of exemptions, you get a  bigger exemption to protect your home equity, but less protection for your car and personal property. With Calif. System 2, you can protect your car and personal property much better, but your homestead exemption will not protect as much home equity as System 1.

 

Also, how much time you have to file BK depends on how far your Lawsuits have progressed. Have you actually been sued or are you just being threatened with Lawsuits? If you have been sued, have you answered any of the Lawsuits? Is a motion for summary judgment or a trial getting near? Apparently, any of these events would largely determine how quickly you want to act, assuming you want to file BK pre-judgment.

 

Aside from getting free consults from BK Attorneys, look into some of the Nolo books on Chapter 7 and Chapter 13 BK. I have their Chapter 7 book, and it is excellent. It is helping me ask my attorney much better questions about the process.

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If you do a post-judgment BK filing, the creditors cannot actively collect on a judgment, so the wage garnishment and that stuff stops. They're limited to something called "in rem" remedies, meaning they could put a lien on your house (if you're a homeowner), so you could not sell or refinance before paying them off.

Not necessarily. The bk code allows you to strip these sorts of leins from unsecured creditors if, it impairs an exmeption you're entitled to take.

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I have been served on two and I answered on both of them. One went all the way to judges decision (still awaiting results). The other just threatened that they will being suing soon (biggest one). I dont own a home (rent) and we have two cars both paid off with no other assets except good looks.

Thank you all for the replies. Going to check out some BK attorneys for free consult.

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Two good articles regarding what happens to judgments during the bankruptcy process. One is for Chapter 7, one is for Chapter 13.

 

http://www.nolo.com/legal-encyclopedia/getting-rid-judgment-liens-bankruptcy.html

 

 

http://allmandlaw.com/chapter_13_bankruptcy/judgments-and-chapter-13-bankruptcy

 

Good luck to you.

 

I am not an attorney 

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I have three cases (credit card) lawsuits currently pending for a total of about $50k. Do I qualify for BK if the creditors are awarded the lawsuits? What do I do to get started making the best decision?

I am not even sure what questions to ask so I am open to questions.

Ty,

JW

Bankruptcy can save your last resort. You must file it now to give your relief settle your problem.

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One thing not mentioned here is in the BK Code - Effect of Discharge.  In that section it states that the Discharge "Voids" all judgment debts that were included in the BK.

 

There are old posts here of me outlining how I then used that code to have those judgments vacated.  The opposing atty blew a gasket when he was served and claimed to have a BK Trustee say that I wouldn't prevail.  The judge disagreed with them and agreed with me!  Judgments were vacated (in the dictionary you can show that a synonym for Voids is Vacates). :)  This got them deleted from the CRAs and any avenue they may have tried to get something from those judgments. 

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Bankruptcy can save your last resort. You must file it now to give your relief settle your problem.

Why are you digging up old posts and posting the same nonsense time and again?

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Why are you digging up old posts and posting the same nonsense time and again?

 

It is a spammer from Australia.  They have two screen names this one and Mabelle Murphy.  They spam advertise BK services in Australia.  Why they bother on USA based websites is because of SEO.  They are hoping that people click the links and it increases the web visibility for their website.  They aren't smart enough to realize that on this site (and a legal one they try it on) that their links have been blocked.  

 

They are not even from Australia.  Some poor BK business in AU hired a foreign company to do their SEO and you can tell by their very poor command of the English language.

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