I'm being sued by one of my creditor...i.e. I've been served with a notice of complaint by my local civil court and I have to file my answer by June 15th. I'm not planning on filing bankruptcy (CH 7, no asset case) until at least June 20th, or sometime that week Monday-Thursday and am wondering a few things. I do plan on filing my answer at the court by June 15th, but if I include the creditor on my bankrupty papers will I be home free since the case has not gone to trial and there is no judgment against me? In other words, can they still continue with a trial and put a judgment on me even if the creditor is included in my bankruptcy filing? Thanks so much!
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I was being sued at the time I filed and the bankruptcy pretty much squashed the lawsuit. The creditor will have to get approval from the bankruptcy court to continue with the lawsuit(which is rarely granted). -
I read something on here, or at least I thought I did, that it's best to file bankruptcy before you have to answer the lawsuit...so is that maybe what I should do? Just file before the 15th (deadline for answer) and just send the plantiff's attorney (and even the court) a notice that I've filed? Would that be better?Comment
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Yeah, because if you don't answer they can get a default judgment against you; generally it takes a few days to few weeks to get th default judgment. If you answer, you will buy yourself some time as the lawsuit will have to move to the next phase.Comment
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I thought you could include judgments in bk? I haven't filed yet but I already have a judgment against me from one cc and I thought it would be included (though I will be filing ch 13).Comment
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Once they get a judgement against you then they can proceed to garnish your bank account and your wages(with approval from the courts). You can inlude them in your bankruptcy, but you probably want to file before they try to take your money.Comment
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fnngrrl.. are you retaining an attorney? If so, perhaps if you make a deposit with him/her before your answer is due, and you can squeek in by sending a "Suggestion of Bankruptcy" to the court and the plaintiff's attorney at the very last minute.. like on the 14th or 15th. If not, how about considering paying your filing fees in installments.. apply for the installment plan when you file your petition..there'll be a minimum deposit.. mine was 39.00. I think most states let you do that. You don't have to file your schedules that same day, either..I think you have like 2 weeks or 15 days. I was thinking that way.. You can "file" on the 14th or 15th and thereby answer the summons honestly with a "SOB" and still get in there in just the nick of time! I wouldn't let this get to court if I were you..it'll just be another headache in this already stressful, mind numbing process.
Are you waiting because of a cc charge or loan to clear past the 90 days or whatever it is? If so, what did you spend the money on? Maybe it's not that important.. ie. like for neccessities????Comment
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You can include judgments in BK, but it is more costly and a pain in the butt, because you have to file a Motion with the Court and have a hearing in order to extinguish judgments, so its much easier and less costly to file bK before a law suit goes to judgment.Comment
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I just noticed you were filing a 13.. scratch the installment idea.Originally posted by Sunshine
When the creditor finds out you are going 13, you can bet your bottom dollar that they'll move quickly.. they want all their money, not 30%. If they get their judgement in a short amount of time... well, I don't know if that moves them up the ladder as far as priorities.. but, well.. I would do everything possible to file before or on your answer date.
I've been so enthralled with this whole CH7 thing.. I haven't read up too much on CH13.. but, I would think that this creditor in particular will show up at your 341.. I say, squash it while you can.Comment
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Oh yeah, if you are filing Chapter 13, the judgment is a secured debt. Secured debts get paid right after administrative expenses (i.e. your attorney), so they will move very fast to get it. The priorites are
Administrative Claims
Secured Claims (judgements fall here)
Post Petition Claims
Unsecured Priority Claims
General Unsecured
However, you can still avoid the judgment, but in a chapter 13, dealing with judgments is even more messy than in a chapter 7.Comment
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I'm waiting since I just got paid today and my checking account balance is like $1600.00 and my state's exemption (Ohio) is $400 in cash, plus $400 wildcard, which I'll take together, allowing me $800. I have my car payment, plus the $209 bankruptcy filing fee, plus some other necessities I need to buy before I file to get my balance down to $800 (since I've been told it matters most what your checking account balance is on the actual day you file). If I don't answer the court, obviously I will get an automatic default judgment, but I'm really wondering if I do answer the complaint, and the case is pending, but hasn't actually become a judgment yet, can I include it on my bankruptcy papers and then consider the matter closed (i.e. I don't have to file a motion to have the judgment vacated)? What would I do then? Send the court and the plantiff's attorney notice that I filed bankruptcy? Thanks for any help.Comment
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Yes, you can, but you need to file a notice with the court of the pending BK.Originally posted by fingrrrlComment
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When I file this notice, as you've directed me I should, does it need to be official or can it just be a simple letter? Thanks!Comment
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