Delay Filing Chapter 7?

[nexus76]

Sorry about starting a new topic for this but just curious of people's opinions on this. Talked to 2 BK attorneys today and they both kind of stated there was no reason to rush into filing Chapter 7. They both knew of my financial situation, unemployed, no assets(except for the car with some equity),"judgment proof",small bank account, have not used a credit card since Feb.. The 1st attorney stated there is no reason to answer the summons at all because they would get judgment anyway whether I denied or admitted to the debt. I'm judgment proof and they can only garnish wages, but I am actually starting work in 2 weeks - the job does not pay much though(they can take 25% in ohio).

The 2nd attorney said I should have him answer the summons for a fee of $200 and he would most likely be able to delay judgment for up to 9 months - sound likely?? Honestly, I thought that sounds like a good idea to delay it. Was he just trying to get some more money? He also stated they could take my car, although it was a very slim chance that they would. Talked to a good friend today and he said he can't understand why I would delay it - doesn't make any sense to him? He said you can't give me one good reason why you would delay it. Really didn't have a good answer for him except my car will be worth less next year? Also, why the different opinions between the attorneys?

[justbroke]

The question of the day: why are there two different opinions from two different attorneys? I am actually surprised that you didn't get three opinions from the two attorneys. They are people and each learned different strategies. You are not judgment "proof". You may in fact be "collection" proof, but you are certainly not immune to having a judgment. Judgments can in fact sting if you have assets with equity (like your car). It depends on too many factors including whether there are exemptions when it comes to assets and the execution of a judgment upon the assets. In all likelihood, you have enough exemptions to cover what you have, so you are essentially "collection" proof. However you mention that, in your State, a judgment creditor can levy upon wages. So, that means you are NOT collection proof.

I think you're in the gray area where using a bazooka (Chapter 7 bankruptcy) to swat your mosquito (debt) may just be two big and is why both attorneys are really saying not to file yet. (See, they actually both had the same opinion, just different ways to delay or execute the delay.)

It reads to me as though you're unsure about the strategy of both attorneys, which boils down to waiting. You should consult 2-3 more attorneys and see if there is any divergence in the underlying theme; delay filing.

[nexus76]

The question of the day: why are there two different opinions from two different attorneys? I am actually surprised that you didn't get three opinions form the two attorneys.

LOL

You are correct that I am unsure, 3 more attorneys next week. I think the way you think, 2 down, 3 to go hopefully clear things up.

[bcohen]

According to the response which you posted on your other thread, one of the attorneys warned you that it "is" possible for the creditor to take your car, once they place a judgment lien on it, however it "might not" happen.

As I posted on your other thread, you would be better off to get rid of the car, and not file for bankruptcy at this time. If you sell the car, keep the proceeds in cash (not in a bank account) and use some of the money to buy a "beater car" while keeping the rest to use for living expenses, etc. until you find a decent job again. When the creditor gets its judgment, there will be no wages or money in a bank account for them to take.

Once you are gainfully employed again, then you might want to file for bankruptcy to protect your wages.

[keepmine]

You file bk at the time it will give you the most benefit.
I'm of the opinion you should have a basic safety net in place. A job with health insurance benefits or,insurance purchased at healthcare.gov or be on medicad. You don't want to file bk and shortly after filing, get sick or have an accident and end up with large medical you can't dischrge since yo already player the bk card.
I'd just say your biggest problem isn't debt and lawsuits but lack of income.Post bk you need to be able to support yourself.The first order of business should be find a job then, revisit bk.