switching lawyers and credit union question

When I first decided that I was going to file for bankruptcy I called Legal helpers. They have been wonderful with all my questions but they are charging me 1800 which I am having major problems paying. I haven’t paid much, may be 250 at the most and I retained the lawyer in November. Today someone recommend a different lawyer who would charge me 1095. Would I be in the wrong if I switched lawyers? Yes I know I have started to pay the first one but I have rearranged my budget and if I took the cheaper one I could file in 5 months instead of a year. I need to crack down and really get this moving.

So what do you all think????

One more ? for you all. I took out a loan 3 years ago for fifteen thousand through my credit union. I was on time with my payments until last November. I received a letter yesterday that I have ten days to respond or it will go to collection and they will take action against me. Now I really don’t want to be sued or served with papers. Should I tell them I am filing for bankruptcy?


Thanks you guys you have been a real help!

Two things.

When I signed with my lawyer, included was a clause that I would continue to pay him until we filed, and that the money deposited was nonrefundable. I am not sure, but if your attorney has a similar clause, you may be stuck. I am happy as a clam with my attorney, so it's not an issue. Also, he and his paralegal have been working "behind the scenes", taking care of calls to US Trustees to get questions answered before I have a chance to ASK them. If you signed a contract of any sort it might be binding.

I tend to believe you get what you pay for, if you DO hire an attorney. Some attorneys in my area will file for $450.00 and the filing fee of $270.00. I doubt they are spending equivalent time for their clients. Not to say you even NEED an attorney, as many people here know, having filed Pro Se.


Regarding the Credit Union. I sure hope you don't have any money in a savings or checking account there.

If you do, I would move it to another back (or cash) ASAP.

In your agreement with them, either in your loan papers or account agreement, is probably a statement that secured your loan with any accounts you have there. That means they can stop you from withdrawing or using your funds if you default on loan payments secured by these accounts. If they do so, you will likely lose everything you have in those accounts. I am not sure if they have to obtain a judgement first or not, since you might have already given that right away by signing the loan or account agreement.

Someone else will better be able to explain it here, I am certain.

Be very leary of Credit Unions , if you also have a checking or saving account they will freeze it and any account your name is on.

Search for Cross collateralazation(spelling may be off) and Off Set

Two things Credir unions use to get around the Automatic Stay
and take your money and the money of people who may have your name on their account like your children or even parents

Good Luck

Remember, they first have to go to collections, then to an attorney, then to court. Its a process and does take a little time. You will know if they sue you. You then have a period of time to respond. Then they get the judgement, THEN they have to collect. AND you have to have something for them to collect. I don't know you situation, but you may not need to be worrying as much as you are about this one. But I do agree. Make sure you have no money in this credit union.

One more ? for you all. I took out a loan 3 years ago for fifteen thousand through my credit union. I was on time with my payments until last November. I received a letter yesterday that I have ten days to respond or it will go to collection and they will take action against me. Now I really don’t want to be sued or served with papers. Should I tell them I am filing for bankruptcy

I would almost bet that the credit union has what they call "cross collateral." THEY WILL and CAN take any money you have in either your savings or checking account attached to that loan and apply to either the loan amount or a credit card IF you also have a credit card with them! IT HAPPENED to me! Luckily for the screwed up DMP I was in at the time they warned me to withdraw all my monies from the accounts. The credit union wouldn't let me close my accounts by the way I had to keep the minimum balance of $5 because I had my cc's and loans attached. So thats what I did but I actually had $10. When word hit I filed BK they froze my accounts (would no longer allow me acces to them on the internet as well.) and took $5 and left me $5 and applied it to one of the Credit Cards I owed on. (I had 3 credit cards with $10,000 balance on each and a $15-$20,000 loan). I was always on time with my payments with all my credit cards and all my loans until I filed. So you probably have a bit of time before they try and get a judgement after you.

Get a new bank account open BEFORE you file IF YOU NEED one at a totally different bank. I think its harder after you file if you haven't filed already!

Best of Luck, CMIYC :cool: