Car was repo'd - haven't filed yet - now what?

[twinsplus14me]

Citigroup kept hassling us, we tried to keep up payments and finally gave in. We tried to drop the car off, but they had nowhere locally to do so, so we arranged a day to have it picked up at our house. Hopefully this will show as a "voluntary" repo? I'm not sure it makes much difference at this point.

They sold the car for about half of what we owed and the deficiency balance is almost 10k. They are calling us to see what we can work out. We're telling them to be patient, we're not sure what we can do yet.

We haven't filed yet. We were going to use our stimulus money, but since neither one of us has found a job yet we've had to use that money to live on for the last month.

I'm guessing the best thing to do is to retain the lawyer now and just pay a little bit at a time until it's paid off?

I'm just not sure what to do at this point. Any advice?

[Priceless ProSe]

Did you mean your going to pay the lawyers fees, "a little bit at a time"? If thats what you have to do, then thats what you have to do. If you are sure you are going to file then definitely dont pay the judgement. Since you have no job/money they cant really garnigh you or anything. Do you own a house (sorry for the personal question, it helps people to answer because if you have no property they cant really get anything from you).

It is ok to wait to file, in my opinion, if they cant get anything from you, buts its kinda stressful to put up with thier harrassent. You could always consider filing yourself as well (Pro se), this could cost as little as $300, or even free if you file to have the fee waived (its not easy though to be honest, read up on it).

For me I was in a similar position, no money no job, so I bought a book (Nolo) and filed it myself.

[JRScott]

Many lawyers will allow you to pay them a small amount and make payments over time to file bankruptcy. Generally they will take phone calls from creditors and such during this time.

Just make sure to list the deficiency balance in the filing when you get it ready

[keepmine]

You're wise to hold off until your finances stabilize. In the grand scheme of things, Citi is irrelevant. You have nothing they can take.
Just keep looking for a job-that's the immediate problem. Good luck in the hunt.

[twinsplus14me]

We don't have anything they can take now.

We had to sell our house before it was foreclosed (luckily we did). Unfortunately,most of the money we got went to pay off credit cards.

Now that the car is gone, we don't have anything to take. I realize that as soon as we go to work, they will file a garnishment.

But, as soon as one of us goes to work, I will immediately pay the retainer fee and the lawyer will deal with all the creditor phone calls.

I just wasn't sure of the time frame involved. If I pay the retainer say next month, and Citi gets a judgement for the deficiency balance, what if it takes me 6 months to pay off the atty? Does it matter how long it takes to actually file after you retain the atty?

I realize they can still garnish until the bk is actually filed.

I wouldn't dream of filing pro se. I'd be sure to mess something up. This is stressful enough without me adding mistakes to it.

[BassBoy]

I don't think it really matters how long it takes, but in the meantime, you'll receive calls from your creditors until you file. I would presume that after a long period of time, your creditors may become impatient with the "I've retained an attorney....yada, yada, yada."

[twinsplus14me]

As soon as one of us goes to work, we'll file.

I'm hoping we can file within the first 2 months of being employed again. That way, they won't have time to get a garnishment (hopefully).

[AngelinaCatHub]

You have conquered the very worst situation. That is, making the decision. Now, make plans and don’t pay any creditors. Use that money to pay the lawyer, and educate yourself right now. The Nolo.com book on Chapter 7 is vary good, but the best place is here reviewing other’s who have made that first step. ‘Hub