File bk anytime?

[syn]

My father has a creditor that is really getting aggressive. It's a local bank, well they deal mostly in the new england area but they call every week or two and they just called today saying if he doesn't call by 8 p.m. they are going to "take further action". My guess is collections.

They have also sent a service company to my house with a letter from an adjustment company telling him to call the bank. Of course he calls but no one called him back.

Anyways, I feel this creditor will just take him to court and I feel it's going to be soon. He's filing for bk but by the time it's all said in done I think something more will happen with this creditor.

My question is if he gets summons to court can he still file bk even if say it's past the court date or the say of the summons? I know it will probably take awhile to get to that part since he stopped paying them in June but out of all of his creditors I think this bank is the one that will put him under.

[evilxs]

My husband had a court case brought against him when his ex stopped paying her credit cards that had been joint when married. She was court ordered to pay them but she decided she wasnt going to because hey then the creditors would just go after my husband, but at any rate. He got the summons and then filed bankruptcy before the court date and there was nothing those creditors could do and he didn't have to go to court. He just didnt have the money to file the lawsuit. If your dad needs the time he should wait it out, but definately not PAST the court date. A judge can toss you in jail for not showing up.

[syn]

Thanks.

Well, the bank is still calling so I would say they haven't even brought it to collections yet. It's a credit card but not only does he have a credit card with this bank but a business loan AND a checking account. No, if he got summons I would make him file as soon as he got it. I would say that he'll probably file by the beginning of November. I don't think it will go to court that fast. Then again I didn't know they would be this aggressive!

[GoingDown]

My husband had a court case brought against him when his ex stopped paying her credit cards that had been joint when married. She was court ordered to pay them but she decided she wasnt going to because hey then the creditors would just go after my husband, but at any rate. He got the summons and then filed bankruptcy before the court date and there was nothing those creditors could do and he didn't have to go to court. He just didnt have the money to file the lawsuit. If your dad needs the time he should wait it out, but definately not PAST the court date. A judge can toss you in jail for not showing up.

This is wrong.

A judge WILL NOT put you in jail for not showing up to court for a civil lawsuit. There are literally millions of default civil judgments granted every year because the debtor didn't show up to court, and none of them end up in jail for not showing up to court for the lawsuit.

The only time you can be put in jail over a civil matter is for "Contempt of Court" for not appearing to a Judgment Debtor Exam. And those are EXTREMELY RARE.

I wish people weren't so afraid of lawsuits and judgments. I have a judgment against me, and it's not a big deal. Nothing happens if you're judgment proof.

[evilxs]

Maybe my legal counsel was wrong, definately possible.

"It's a credit card but not only does he have a credit card with this bank but a business loan AND a checking account."

Move the checking account out of there. Put the checking account at a bank where he does not owe any money to them in the form of debt he plans to discharge. That was the advice we got from our lawyer and have since moved our checking to a different bank.

[evilxs]

I can't stop thinking about this. I've been summoned to court many times. My summons have always read that I must put all business aside and be present and lists the penalties possible for not showing up. Just must be the empty threat they never actually do. Sorry if I gave bad advice on that.

[treehugger1]

If folks could be jailed for debt and judgment, we'd need to build thousands of new prisons each year. The deal with debt is that it is two-sided; the lender and the borrower. Both assume risk. And as we watch the economy come apart, it seems clear that both sides must bare the burden. The problem is not just with sub-prime mortgages. There were plenty of financial institutions and plenty of borrowers more than willing to hand out/receive tens of thousands of dollars in unsecured debts for credit scores 650 and lower. It doesn't look as if the model worked well from either side. Can one have a prison for debtors and not have a prison for lenders? Sorry, I'm off track.

As goingdown noted, if you fail to show for a court-ordered appointment such as a debtor's exam, then you might be jailed. It is more likely, you will be given one final chance or "compelled" to show up for the exam. I see nothing to be gained by jailing a debtor. The law already works in the favor of the creditor. Once the judgment is in hand, there are laws that state how a creditor can collect. And, lucky for many, there are built in protections as to how collections can occur (exemptions, etc.) But the judgment provides a variety of tools to collect on a debt: garnishment, bank levy, seizing non-exempt assets, etc.

[StartingOver08]

Syn, the bank has been successful in getting your/your Dad's attention.
That is part of the collection process - to scare the heck out of the debtor.

Now you need to focus on the most important point:
MOVE ALL THE MONEY FROM THE BANK THAT HAS THE BUSINESS LOAN AND THE CREDIT CARD

We are already in late Oct 2008. If you Dad is filing next month I assume he is working on all of the paperwork the attorney requested. If he has not started the paperwork yet, he needs to as it is quite time consumming. You and your Dad need to concentrate on filing, IF this is the right time. Because his BK is a little bit more complicated with the business aspect, don't let a creditor force you into filing too fast.

[syn]

Syn, the bank has been successful in getting your/your Dad's attention.
That is part of the collection process - to scare the heck out of the debtor.

Now you need to focus on the most important point:
MOVE ALL THE MONEY FROM THE BANK THAT HAS THE BUSINESS LOAN AND THE CREDIT CARD

We are already in late Oct 2008. If you Dad is filing next month I assume he is working on all of the paperwork the attorney requested. If he has not started the paperwork yet, he needs to as it is quite time consumming. You and your Dad need to concentrate on filing, IF this is the right time. Because his BK is a little bit more complicated with the business aspect, don't let a creditor force you into filing too fast.

He already knows which bank he is going to move it to. He hasn't done it yet even though I told him he should atleast open a new checking and savings account now. He hasn't started the paperwork gathering yet because he hasn't settled on a lawyer. I know basically what he needs to get, though. It won't take long to do, just alot of copying.

He actually called the bank. I have no idea what was said but he and the woman he talked to are on first name basis and she even talked to him about her own family. He said she was "pleasant". I'm sure he didn't agree into anything, he isn't stupid enought to do that. I don't know how pleasant she will be when she finds out her bank is going to be a creditor...