Will Chap 7 stop an imminent law suit?

[NeilBurnside]

I'm a newby so be gentle with me.

I have over 60k, plus, worth of depth and limited income, no assets, except some money in a deferred comp retirement plan, and a 15 year old Toyota. I also owe 2 years of taxes and self employed payroll taxes.

All my debts are credit card related, which I defaulted on and were sold off. All are nearing the end of the S/L. Today is the last day to request verification on one of them. So, I feel they will all start filing lawsuits. I believe I qualify for Chap 7 and will be calling looking for an atty today.

What happens if a creditor files a law suit before my attorney files the necessary bankruptcy papers? Will I still have to answer? Go to court? Just tell them I have an impending bankruptcy?

Since I need an atty in Los Angeles, what is the best way and quickest way to find a good one?

Thank you for your help. As most people are in the beginning, I'm pretty nervous about all this.

[Floridagail]

You have plenty of time to file. I was sued , no need to respond they will get judgement if you owe them whther you go to court or not, either way. They just do it to get people to pay that can, So do not get upset. I was sued June 2008 by CapOne, I imformed them I was judgement proof, meaning no wages or assets. just exempt income. They sued me anyway. My attorney said do not go to court just ignore. I ended up filing due to they wanted copies of my retirement accounts and bank accounts. And they can ask for that
thru the court anytime they feel like you may come into assets. So I filed Jan 2009 to get rid of them all. I had stop paying in june 2006 all my cards. When I was unable to work. Noone else ever bothered to sue me. I had heard CapOne was sueing for 500 or more. Now i believe the person who told me.

[NeilBurnside]

You have plenty of time to file. I was sued , no need to respond they will get judgement if you owe them whther you go to court or not, either way. They just do it to get people to pay that can, So do not get upset. I was sued June 2008 by CapOne, I imformed them I was judgement proof, meaning no wages or assets. just exempt income. They sued me anyway. My attorney said do not go to court just ignore. I ended up filing due to they wanted copies of my retirement accounts and bank accounts. And they can ask for that
thru the court anytime they feel like you may come into assets. So I filed Jan 2009 to get rid of them all. I had stop paying in june 2006 all my cards. When I was unable to work. Noone else ever bothered to sue me. I had heard CapOne was sueing for 500 or more. Now i believe the person who told me.

Thank you! One thing though, I always hear that judgments are bad to have on your record and should be avoided at all costs. Does that not apply if you declare bankruptcy? Anyway, I've paid off 2 creditors, CapOne being one of them, and I wish I hadn't. I was fooling myself thinking my situation would get better.

[SeaWolf]

I have a similar situation...

I have known for almost a year that I need to file Chap 7 but have been putting off, partly due to denial and partly due to not having the $$ to pay attorney.

Today, I come home from work and have a notice on my door from the Sheriff saying I have a civil summons. I only assume this is a creditor filing a lawsuit. I have no other legal issues.

I will be calling first thing tomorrow to a BK lawyer. I received enough money on my tax refund to finally afford an attorney.

I think at the very least, I have to let the Sheriff serve the summons on me. Will this impact my Ch 7? I know people say to ignore the suit and proceed with filing BK, but I can't ignore the Sheriff right??

[NeilBurnside]

I can't answer all your questions but it is a civil summons, right? The worse is a default court judgment if you ignore it. It's not like they can haul you off to debtor's prison for non appearance.

[Floridagail]

Thank you! One thing though, I always hear that judgments are bad to have on your record and should be avoided at all costs. Does that not apply if you declare bankruptcy? Anyway, I've paid off 2 creditors, CapOne being one of them, and I wish I hadn't. I was fooling myself thinking my situation would get better.

Judgements will drop off your credit report ( unless renewed every 10 yrs, bankruptcy cant be renewed. ) the bankruptcy will satisfy it, so do not worry about it. ( If you paid off creditors within 90 days b4 you filed, the court could take back the money from them.) The reason you do not want judgement is, it gives them power thru court to freeze your bank acct, go after your paycheck, or assets. But bankruptcy stops it in their tracks.

[Floridagail]

I have a similar situation...

I have known for almost a year that I need to file Chap 7 but have been putting off, partly due to denial and partly due to not having the $$ to pay attorney.

Today, I come home from work and have a notice on my door from the Sheriff saying I have a civil summons. I only assume this is a creditor filing a lawsuit. I have no other legal issues.

I will be calling first thing tomorrow to a BK lawyer. I received enough money on my tax refund to finally afford an attorney.

I think at the very least, I have to let the Sheriff serve the summons on me. Will this impact my Ch 7? I know people say to ignore the suit and proceed with filing BK, but I can't ignore the Sheriff right??

They will keep coming back , I let them serve me, and said thank you. You have plenty of time to file to stop it. Your attorney will respond and tell them you are filing. Capital ONe were sending me a letter every week after judgement filing, stopped in their tracks with bankrupty filing. Good luck
It will get better.

[AngelinaCatHub]

It is my opinion to avoid a judgment at all costs. They are too dangerous and can haunt you. In the event for any reason your bk is dismissed, you have a Judgment and the hassle of attempted collection. It is true bk can discharge the Judgment, but if you respond, and make an attempt to lengthen the procedure, you have a good chance at the auto stay killing it off completely. I have horror stories about what a Judgment can do to a person. It is less trouble to as for a time extension to plead your case. If you do not respond there is only one thing that happens and it is to you. If you respond you have at least a chance. ‘Hub

[NeilBurnside]

So, if I am served with a summons on Monday and my attorney files for BK on Wednesday, will the person suing be prevented from obtaining a judgment even before the BK is granted and debts discharged????