Warrant in Debt??

[julsmom]

Ok so I had to let the credit union know we were filing because they were calling my mother...so I let them know & told them to contact attorney & gave them the info. Now get home yesterday to warrant in debt papers with court date, WTH! Are they trying to rush in & sue me before we file? I have already sent notice to attorney, but what do we do? The warrants are for the cc debt but my concern is DH's car is financed with them, only missed the 1 payt but 2nd payt coming due & we were told not to pay since it would be going in with BK & that would be paid that way.

I think it needs to be filed NOW>..we did get appraisal yesterday which came in for less than we owe on the 1st YAAY! So we can strip the 2nd if all goes well.

BUT...DH was offered a new job, which he would be a consultant & make considerably more (which don't get me wrong, of course is a good thing)...but if I now have to WAIT again until he starts, gets new paystubs, etc that puts us off at least another month & I just don't think we can wait that long. I have asked attorney if we are better to get filed now & then have to adjust payment when it comes to that. Waiting to hear back, very anxious & hoping for answers soon. DH is about to have a stroke, he doesn't understand any of this...it has been all up to me, the research, the appts, being here...he sees a warrant & is going off on me that it is a warrant to come ARREST us...why is this taking so long? This is a huge mistake...bla bla bla....I am ready to just run away...ughghhh! So stressful, and they wonder y I have ulcers? Really....

[LadyInTheRed]

Your husband needs to relax. Nobody is going to get arrested. I suggest you do your best to educate him about the bankruptcy process. The more he understands, the less stressful it will be on you. Start by having him read the Warrant for Debt so he can see that it is not the same thing as a warrant for arrest.

You do not need to wait to file in order for your husband to get pay stubs at his new job. Your means test uses the last 6 month's income. If you file in May, you use the income from November through April. If you file in June, you use December through May. Unless there is some reason to delay filing (like an insider preference, for example), your attorney will probably suggest you file right away so you can use the lower income. Since your husband is not likely to get a pay check from the new job before the end of May, you have over a month to get your petition filed without including the new income on the means test. Schedule I asks for your "Estimate of average or projected monthly income at time case filed." So, the new job will probably affect what gets included there, but it's no reason to put off filing. For Schedule I, make sure to estimate his tax withholding based on the new income.

Depending on how quickly the process moves in your state, you probably have plenty of time to file before the bank gets a judgment. The change is income is likely to justify a filing before a judgment would be entered. Is there a court date on the Warrant?

[Lissy]

I don't know what a warrant in debt is. If it is a summons to appear in court, then yes, they are suing you. Not sure if they are the same thing. You will not be arrested for missing cc payments. Tell your husband to relax. Since you've missed a car payment already, you could be in jeopardy of losing the car. They could repo it if they were so inclined. I'm a bit confused as to why your atty is telling you not to pay on the car. Are you surrendering it in the BK? Or do you want to keep it? If you want to keep it, you need to stay current on the payments.

As far as the papers you received, maybe someone with experience in that area can chime in. I was never sued, so I can't answer that. Although I have read many threads here about what to do in this situation, so try searching the Collections forum. I believe answering the summons (if that's what it is) can buy you some time. Good luck, I know it's stressful, but it will get better!

[SMinGA]

My guess: the car loan will be paid as secured debt in the bankruptcy. So in the long run, whether they pay $X now and pay (current balance - $X) in the plan or just pay the current balance in the plan, it doesn't make a major difference.

In the short run, however, if making a car payment will help keep the CU at bay until you file, and you can afford to make the car payment, that won't hurt... Just would need to update the loan balance before filing.

I'm a bit confused as to why your atty is telling you not to pay on the car. Are you surrendering it in the BK? Or do you want to keep it? If you want to keep it, you need to stay current on the payments.