Need Help before Sheriff Arrives QUICK

[no_it_all]

What is the infatuation with "legal services" waiting for the "sheriff taking inventory". What is up with that? There has got to be A WHOLE LOT more to this story! Who owns the Subchapter S corp? What state are you in??? Are these all related bubba's??? You know, guys with two first names: Billy Bob, etc..

[no_it_all]

I'd like to call them up and say you are wasting your time because if you sue us you won't get anything because we are self employed, on food stamps, and just barely making rent payments.

I thought you were already being sued by the bank..??? Maybe that was just a figure of speech but please try to post info as accurate as you can. Being sued and having a judgement entered in behalf of a creditor are two different things...

[catwhisperer]

What is the infatuation with "legal services" waiting for the "sheriff taking inventory". What is up with that? There has got to be A WHOLE LOT more to this story! Who owns the Subchapter S corp? What state are you in??? Are these all related bubba's??? You know, guys with two first names: Billy Bob, etc..

OK, The bank has sued us for nonpayment of the balance due once they repossessed the trailer and sold it at auction. The FREE legal services attorney send a letter of response to the bank. The BANK is now sending us very threatening looking documents. I think you may be correct that they have to take us to court and win the lawsuit first before the sheriff comes through. Bottom line - I want to stop this NOW, it is causing me stress beyond belief since we are going to file anyhow. I don't want sheriff's coming to my door anymore.
WE own the subchapter S corporation. We are in Pennsylvania. And yes, they are probably all related (just kidding).

The corporation cannot be touched since it is incorporated. We just get the profits or losses passed through to us personally but there have been no profits in many years so that is a mute point. We just have to submit the information but nobody can touch our corporation because that is why we incorporated. Does that clear it up?

[catwhisperer]

I thought you were already being sued by the bank..??? Maybe that was just a figure of speech but please try to post info as accurate as you can. Being sued and having a judgement entered in behalf of a creditor are two different things...

OK, that is probably where the problem is. The Legal Services attorney did not clear this up for us. We weren't aware that there was a judgement that would have to be issued first before the sheriff. But the Legal Services guy drafted something to send to the bank that, frankly, ticked them off.

Y'all are helping me out alot more than the Legal Services guy. He got one thought stuck in his mind that the business would have to file bankruptcy and didn't listen to what we said.

[no_it_all]

Legally, your Chapter S corp is a distinct entity..UNLESS you have personally guaranteed any loans..which is very common in Chapter S corps...You apparently have not even been "served" yet. That is the first step. It is a call to court by the creditor. You have twenty or thirty days to respond to that. If you don't and just ignore it, a default judgement may be entered against you. So, you have a couple of weeks to get the Chapter 7 ball rolling. Once/if the judgement is entered, all that means is that the creditor can collect. The still don't have the legal right to send a sheriff. Once the judgement is rendered, you have anywhere from twenty to thirty days to pay or appeal. So you are looking at least a month before the wolf is at the door. You can file Chapter 7 without any money at all. Just fill out the form for paying in installments. Once you file, you have about fifteen days to get all the rest of the paperwork in. You do need the credit counsel paper. You can get that online in an hour or two and print it out after you call the "credit education" company (it is a HUGE joke)...good luck and DON'T LET 'EM SCARE YOU!! Easier said than done LOL.........

[catwhisperer]

(snipped) ...You apparently have not even been "served" yet. That is the first step. It is a call to court by the creditor. You have twenty or thirty days to respond to that. If you don't and just ignore it, a default judgement may be entered against you. So, you have a couple of weeks to get the Chapter 7 ball rolling. Once/if the judgement is entered, all that means is that the creditor can collect. The still don't have the legal right to send a sheriff. Once the judgement is rendered, you have anywhere from twenty to thirty days to pay or appeal. So you are looking at least a month before the wolf is at the door. You can file Chapter 7 without any money at all. Just fill out the form for paying in installments. Once you file, you have about fifteen days to get all the rest of the paperwork in. You do need the credit counsel paper. You can get that online in an hour or two and print it out after you call the "credit education" company (it is a HUGE joke)...good luck and DON'T LET 'EM SCARE YOU!! Easier said than done LOL.........

I'm no lawyer - can you tell. We were served with papers that we were being sued by the bank. Went to free Legal Services. He wrote us a letter to "stall". Then got a 10 page legalese response from the bank. So from what I can tell I still will have time when (a) the bank gets a judgement against us (b) they then have to request payment. So are we saying about 30-60 days before that happens. I guess from what I am reading that AFTER the bank gets the judgement and AFTER they request payment and AFTER we don't pay that then the sheriff arrives. This guy at free legal services sure didn't explain it that way. But, it gives me time to scare up some money and pay for a lawyer and pay the fees.

THANKS MUCHO to all of you! I'm sure I'll be hanging out here for a while.

[SinkingFast]

She ain't kidding when she says they can send the Sheriff to do an inventory and sell their household goods.

After the hearing and the determination by the court of the fair market value of the property sold, the debtor, obligor, guarantor and any other person liable directly or indirectly to the judgment creditor for the payment of the debt shall be released and discharged of such liability to the judgment creditor to the extent of the fair market value of said property as previously agreed to by the judgment creditor or determined by the court, less the amount of all prior liens, costs, taxes and municipal claims not discharged by the sale, and also less the amount of any such items paid at the distribution on the sale, and shall also be released and discharged of such liability to the extent of any amount by which the sale price, less such prior liens, costs, taxes and municipal claims, exceeds the fair market value as agreed to by the judgment creditor or fixed and determined by the court as provided in this subsection, and thereupon the judgment creditor may proceed by appropriate proceedings to collect the balance of the debt.

http://members.aol.com/StatutesP2/42.Cp.81A.html

That is harsh and unreal!!

Just bear in mind, Cat, none of this is gonna happen over night. As others have said, you'll have time to get things together toward filing your BK.

[djk]

if you have been affected, i.e. live in an area hit by hurricane Katrina, you can have the counseling waived prior to filing, also, under H.R.833 individuals under certain circumstances would be allowed to take the course AFTER filing as long as you give notice to court at time of filing. People who say you MUST take the course prior to filing are WRONG. It completely depends on where you live and what your situation is. Do the research and take everything you read on this forum with a grain of salt because some posters do not really know, they will just tell you to talk with a dozen lawyers. good luck.

[SinkingFast]

if you have been affected, i.e. live in an area hit by hurricane Katrina, you can have the counseling waived prior to filing, also, under H.R.833 individuals under certain circumstances would be allowed to take the course AFTER filing as long as you give notice to court at time of filing. People who say you MUST take the course prior to filing are WRONG. It completely depends on where you live and what your situation is. Do the research and take everything you read on this forum with a grain of salt because some posters do not really know, they will just tell you to talk with a dozen lawyers. good luck.

From Library of Congress, Thomas

(3)(A) Subject to subparagraph (B), the requirements of paragraph (1) shall not apply with respect to a debtor who submits to the court a certification that--

`(i) describes exigent circumstances that merit a waiver of the requirements of paragraph

http://thomas.loc.gov/cgi-bin/query/...CZoZgR:e50161:

The debtor has to prove extreme circumstances to the Court to get a waiver of Credit Counseling and the pre BK Cert.

It would be quicker to do the counseling and get the Cert.

[so-beyond-broke]

Catwhisper:

I am not sure how being part of a corporation will affect you filing a CH 7, but I do know that everyone has a right to file an emergency bk especially if you feel that you need to stop a foreclosure or creditors in their tracks. You would need to fill out the voluntary petition along with the creditor matrix. You will also have to have the rest of the paperwork completed within 10-15 days or you could risk it being dimissed. In some cases you can file BK before geting the pre-bk counseling certificate and there is a box that you check off on the petition stating whether or not you took the counseling session. You will still need to have this session in order to get the certificate under the new laws. I am not sure of how many days they will give you to file this certificate with the bk court. The price for filing a Ch 7 BK is now $299, which can be paid in installments - 4 payments or if you really have a financial need you can file a waiver of the fee with the court. From what I heard you would need to go before the judge and explain why you can't afford to even pay in installments. You'd probably have to show financial documents for this. Some people don't want to go through the hassle so they pay it all or do it in installments.

Good Luck,
sbb

[no_it_all]

if you have been affected, i.e. live in an area hit by hurricane Katrina, you can have the counseling waived prior to filing

True, but since the OP lives in Penn, and hasn't been affected by the hurricane, not sure how this advice is relevant to her...

[no_it_all]

People who say you MUST take the course prior to filing are WRONG. It completely depends on where you live and what your situation is.

Well, she lives in Pennsylvania and her situation leaves her a poor candidate for relief of the pre-bk counseling requirement. It would be much better for her to spend the forty bucks and ninety minutes it takes to get the form. ESPECIALLY if time is of the essence............

[SinkingFast]

There are ways around some of the Formal "Must Do's" of the New BK Law.

Yes you can get a waiver and not need the pre BK Cert. Yes you can get a waiver for the filing fee or pay the fee in installments. Yes you can research and learn, and fill out your own paperwork, and file on your own.

Cat can mess around with the Court for a waiver of the pre BK Cert, or Cat can spend the 90 minutes and $50 bucks and be done with it.

I agree there are alternatives that could be pursued. But, in this particular case, it's not about the hassel. It's about whether or not Cat has the time and can afford to wait.

From what Cat is saying, Cat does not have the time to wrangle for a pre BK Cert waiver, or pay the filing fee in installments, or work to get the Court to waive the filing fee, or spend time learning PA's State Exemptions and figure out how to apply them to fill out and file the paperwork. Cat needs to make appts with attnys for Consults, pick one, and get moving to get the automatic stay in place to protect the family's remaining property and their business.

[Minnymouth]

Doing the pre-counseling etc is like a $50.00 expense......

To file a petition, appear in front of the Judge to get the counseling waivered is going to be an expense also.....

Sooooo, might as well pay the pre-counseling fee, get it over with and file an emergency petition and get it all going...

Minny

[catwhisperer]

Well, she lives in Pennsylvania and her situation leaves her a poor candidate for relief of the pre-bk counseling requirement. It would be much better for her to spend the forty bucks and ninety minutes it takes to get the form. ESPECIALLY if time is of the essence............

I certainly am going to go ahead and do the cert for the credit counseling session. That would at least get the ball rolling and stop other roadblocks to this going through smoothly. I contacted an attorney locally today and they quoted me $1725 for the BK. We told them "thanks, but no thanks" I'm SURE there is somewhere to get it cheaper. Does anyone know of alternatives other than Bridgeport Bankruptcy and Form7.com (Form7.com does not have current documents and the founder died! - they aren't sure when the new forms will be up).

I used to work for H & R Block and am real good at filling out forms completely. I figure if we can do the forms to our best ability and then have an attorney review them we can save a ton but still cover ourselves by having attorney representation. Any thoughts