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In foreclosure- do unsecured creditors still sue when you can’t pay your mortgage?

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    In foreclosure- do unsecured creditors still sue when you can’t pay your mortgage?

    I am in a race against time. I will likely be foreclosed on and have about $50,000 unsecured debt. Not able to file bankruptcy as my only asset is an inherited IRA which would be non-exempt if It is determined I need to use Federal BK law. So think I will have to see how many sue me. Do the odds creditors filing law suits go down if they see you are in foreclosure? My IRA is protected from creditors in judgements in FL, but I haven’t lived here long enough for FL BK.

    Deciding weather her to use up large hunk of IRA to stay in condo for another year then file CH 7. Can’t pay unsecured so will have to hope I can avoid judgments until then. What are odds of being able to fend off the creditors -CCs and personal loans, that long?

    #2
    A creditor is usually not dissuade by the status of other creditors. It's literally every creditor for themselves and the "rush to the courthouse steps" seems to be the name of the game. A foreclosure doesn't mean that the debtor lacks money (to levy) or a job (to garnish the pay). There is no way that anyone can predict which creditors will take quick action (although creditors like Discover are pretty brutal and fast), why the did or did not take action, or the general temperament of a creditor.

    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog


    I am not an attorney. Any advice provided is not legal advice.

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      #3
      Thank you, I guess I’ll find out...

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        #4
        There is no way to predict which creditors will sue quickly, and which will write off your debts and sell them to junk debt buyers. Some, such as Discover have a reputation for suing everyone who defaults, and out of all my creditors they were the only one to sue, which forced me into bankruptcy. I had no current/positive accounts on my credit reports, and lots of collections and charge-offs, and Discover still thought they could collect with a judgment. Needless to say, I pulled out the Chapter 7 trump card, and they didn't see a dime.

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          #5
          Did your other creditors just not file suit? How did you handle them?

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