Need Advice

[Big T]

Met with my lawyer who I have already paid a $3100.00 retainer fee. I live in Mich and am looking to file ch 7 individually (Debt is CC $100K in my name only, not wife's). We are over the means test. I have been on unemployment for 2 months now(wife still working) and according to our monthly budget, we are barely getting by each month. Lawyer suggested if I file now, there is a good chance the trustee would object and it would get turned down. He said another option is to wait another 3 months and try later or file a 13. I opted to wait it out, but some of the cards are 150 days late and have been turned over to collection hit men. Not sure if I can wait out another 90 days without legal action being taken against me. Did I make a mistake?

[AngelinaCat]

You can probably wait out the 90 days. It takes time for a lawsuit's paperwork to be assembled and filed. Then, first, a subpeona must be filed on you and filed with the court. You typically have twenty days to answer. File an anwer with the court saying that you neither 'acknowledge or deny the charge'. You may be given a notice to appear. Respond to that. You NEED to appear in court to avoid a default judgment.

[Some posters here have slammed 'Hub's and my advice on this--saying a default judgment is no big deal. That may or may not be true in your case. It is in ours. I stand fast--APPEAR]

A court date will typically be about 20 days after your summons. As I said, appear. You and the attorney for the creditor, typically by phone, will appear before the judge, who will then set a date for Mediation. That usually is held only one day a month--say the first Friday of the month. If that date is NOT convenient to you, as it was in our cases, SAY SO. Then the date for the Mediation is backed up another 30 days.

In our cases, we had filed by the time the Mediation dates rolled around, so it was moot. Now, if you want to work out an arrangement with your creditor, that is up to you, your attorney, and the creditor.

Good luck to you.

[AngelinaCat]

I need to add that if you do NOT show up in court on the appointed day, the judge WILL impose an automatic default judgment against you. So any wage garnishments, et. al. will start at least 20 days sooner than they would, if you appear.

Although it takes time for those instruments to be legally invoked, by NOT appearing you will have given the 'Other Side' 20 FREE days, so to speak.

[TEW]

Met with my lawyer who I have already paid a $3100.00 retainer fee. I live in Mich and am looking to file ch 7 individually (Debt is CC $100K in my name only, not wife's). We are over the means test. I have been on unemployment for 2 months now(wife still working) and according to our monthly budget, we are barely getting by each month. Lawyer suggested if I file now, there is a good chance the trustee would object and it would get turned down. He said another option is to wait another 3 months and try later or file a 13. I opted to wait it out, but some of the cards are 150 days late and have been turned over to collection hit men. Not sure if I can wait out another 90 days without legal action being taken against me. Did I make a mistake?

[keepmine]

You got plenty of time to wait 'em out-don't get bluffed into a premature filing.

[jgordo52]

I haven't paid anyone for 7 months on cc's and haven't heard a peep from creditors in about 3 months. Normally I thought that was a bad thing but I gave them my attorneys name and number and that was it. Now I'm thinking about delaying it even further due to me making alot of overtime during the summer. Winter is our slower season so if I can wait it out til January or February it'll probably ensure a ch. 7. Good Luck to you.

[DaisyMae]

!!!! $3000 !!!! for Chapter 7????

Hey- I have some swampland in Florida. CHEAP.

[Big T]

Thanks for the responses.

No thanks Daisy, I got enough problems. I was quoted $2700.00 for attorney fees, $199 filing fee, another $99 for something else, so it totaled $3,099. I was told by the paralegal that normally they charge $1500.00 for a 7, but mine was more complicated becuase they knew I wouldn't pass the means test and they would have more time into it so they bumped it up to the $2700.00. Didn't question it at first, but wish I did now. I have already started the process, should I cut my losses and start over with somebody else? This entire process is nothing but stress and now on top of it I feel like maybe I'm getting taken advantage of to boot.

[StartingOver08]

Mine cost $2800 with the fees. Same reason, complicated BK with business and personal debt. The attorney knows the trustee will object - I think that there is a difference between a simple Bk and one with self employeed Bk'ers...IMHO

[cupcake]

My attorney, also in Michigan, normally charges $4,000 for a CH 7 but he cut me a deal to $2,500 because of the relationship he has with my office. My CH 7 will be a no asset case and it should be relatively simple!

ETA: Big T, even if one of your creditors or a collection agency filed suit against you today, you'd still have some time before a bank or wage garnishment could go into effect. In Michigan, you'd have less time with a small claims action but well over three months (probably closer to six) if they filed in district or circuit court. The venue would be determined by how much you owe that specific creditor. If you get served, figure out what the venue is. If it's small claims, attend the hearing listed on the paperwork. If it's district or circuit court, make sure you file an answer (21 days if served personally / 28 days if served by mail). File your responsive pleadings close to the end of that deadline and then serve the creditor with some discovery requests. They have 28 days to answer your requests. Then, even if things moved quickly and they got a judgment, the judgment isn't final for 28 days after it has been entered. You have some time, don't worry.

[Big T]

Got a letter from LTD Financial services today. It said unless I notifty their office within 30 days they will assume the debt is valid. It is for a credit card that has the business name and my name on it. I didn't own the business only worked there. Should I write them asking for validity to stall the process?

[Intoodeep80]

Ok Im in Michigan too and you guys are starting to worry me; My lawyers fee for Chapter 7 was $1400. I had recommendations for this particular lawyer and now Im wondering why I got away for so cheap?! Am I getting a subpar lawyer?

[Big T]

I think you are fine toodeep. That sounds about right from what I have heard. What part of Mich? Large city or smaller area?

[KrazyInMichigan]

Hi toodeep,

I'm in the Metro Detroit area. My friend is going through BK, her attorney charged $1500 and seems to be a good attorney. Good Luck!

[Intoodeep80]

I think you are fine toodeep. That sounds about right from what I have heard. What part of Mich? Large city or smaller area?

Im in Macomb County. I couldnt possibly fathom paying $3000+ for a bk lawyer. Isnt it ironic - you are filing bankruptcy but can afford to pay a lawyer 4 grand? LOL I was griping about $1400!!!