Starting the process - too late?

[TxDodge]

We made the decision earlier this year to file BK. Talked to some attorneys, CCCS told us they could not help us and BK was our only option. We finally got enough money together to hire an atty, but still need to come up with the remainder to pay him to actually file. We had hoped to have that resolved within the next 2-3 months depending on how quickly we could sell a car.

2 of our cards have since gone to collection attorneys, and to my surprise Citibank decided to file a suit. Got served today, claiming almost $18k.

Any advice? I am sending a copy of the suit paperwork to our atty, but I am fairly certain this will fall outside the BK fee, and thus additional costs. I know I could probably file an answer myself, then a couple motions, etc. to drag it out, but I am sort of new to this. I live in Texas, which I know is pretty friendly to debtors instead of creditors, which is good.

Of course both our blood pressure has gone up today!

[HHM]

How soon will you be able to file BK?

If you can file the BK before your Answer in the CitiBank lawsuit is due, then all is good, you won't have to do anything. In fact, if at all possible, it is best that you file your BK before the Answer is due...you do not want CitiBank to get a judgment against you (as judgments are not automatically discharged in BK).

Otherwise, go ahead and Answer the complaint to buy you some time.

Regarding selling the car, if you can, sell the car undermarket to speed-up the pace of sale (about 10-20% undermarket), assuming that will meet your needs to pay your attorney and pay off any lien on the car. It would be better for you to file BK as soon as possible.

[TxDodge]

How soon will you be able to file BK?

If you can file the BK before your Answer in the CitiBank lawsuit is due, then all is good, you won't have to do anything. In fact, if at all possible, it is best that you file your BK before the Answer is due...you do not want CitiBank to get a judgment against you (as judgments are not automatically discharged in BK).

Otherwise, go ahead and Answer the complaint to buy you some time.

Regarding selling the car, if you can, sell the car undermarket to speed-up the pace of sale (about 10-20% undermarket), assuming that will meet your needs to pay your attorney and pay off any lien on the car. It would be better for you to file BK as soon as possible.

Thanks. The car in question is a low mileage 92 in great shape. It is paid for - no liens, and it should fetch enough to pay the atty, maybe a little more but I doubt it. If I have to I might be able to borrow the money needed from relatives, then pay them back when the car sells. Not sure if that will work though.

[HHM]

At this point, you don't really have many option, scrape the money together how ever you can to get the BK rolling, time is against you.

[SinkingFast]

In fact, if at all possible, it is best that you file your BK before the Answer is due...you do not want CitiBank to get a judgment against you (as judgments are not automatically discharged in BK).

Otherwise, go ahead and Answer the complaint to buy you some time.

Regarding selling the car, if you can, sell the car undermarket to speed-up the pace of sale (about 10-20% undermarket), assuming that will meet your needs to pay your attorney and pay off any lien on the car. It would be better for you to file BK as soon as possible.

So as not to scare you,........... I believe HHM meant that the Judgement would remain as a public record while the debt associated with it would be discharged in BK.

Good advice about the car. We were in the same situation. You gotta decide. If you need the money fast, then you may have to take less for the car.

Personally, I agree with HHM. Get your money together and get your BK filed. Get this law suit stopped dead in it's tracks. That's your easiest route in the long run.

[TxDodge]

So as not to scare you,........... I believe HHM meant that the Judgement would remain as a public record while the debt associated with it would be discharged in BK.

Good advice about the car. We were in the same situation. You gotta decide. If you need the money fast, then you may have to take less for the car.

Personally, I agree with HHM. Get your money together and get your BK filed. Get this law suit stopped dead in it's tracks. That's your easiest route in the long run.

That is the plan. I just don't know if we will be able to scrape together all the money in time for the answer. That is why I was thinking I could answer the suit, and drag it out for a month or two. It is risky I know, since the court may not grant the extensions. I'll have to see what I can do.

[HHM]

If you can file the Answer on time, you don't need to worry about extensions or anything. Answers are fairly easy documents, (for this type of lawsuit, your court's website might even have a form you can download). But typically, you only aveh 20 or 30 days to responde from the date you were served with the summons (the Summons will tell you what your deadline is).

Basically, you go through each numbered claim on the Plaintiff's complaint, and in your Answer, you state whether you "admit" that claim (meaning, you agree the statement is true), "deny" the claim (meaning you know the statement is false), or "Lack Sufficient Knowledge as to form a belief about whether the plaintiff's allegation is true or false" (which is the legal phrase for I don't know"

Depending on what type of court the case is filed in, once you file the answer, the ball is back in the Plaintiff's court, whose next move would be to file a Motion of Summary Judgement and schedule a hearing (or a hearing may be scheduled upon your filing an answer). Basically, if you file the answer on time, you will buy yourself 30 to 90 days.