Creditors meeting

[jlc614]

What is the name of your state? NY

I am waiting for an attorney to call me back to start the chapter 7 process (both my husband and myself will be filing) but I have a question and thought I would ask it here while I wait. I know I should discuss it with the attorney as well and I will. I know that there will be a creidtors meeting where they all get the opportunity to come and dispute the BK. I am concerned about the following:

I have a judgement for about $11,000.00 with a bank. This is currenlty being collected by my local sheriff and I have been making payments as much as I can. However, they are charging me 9% interest on the funds and I just can't get above it. I can't afford to make much of a payment so most of it is going to interest and I am not making a dent in the actual judgment. My questions is can they actually stop the BK.....after living expenses I am only left with $80.00 and I have $50 in savings. I do not own a home, I rent. My husband and I each have a car on is a 1989 minivan which is on it's last leg and the other is a 1990 volvo that needs a new radiator and has some major oil leak problems plus some body issues, I can't imagine either is worth much. The money from the judgement was for two car loans both cars were repossesed at least 4 years ago. Please give me any advice youmight have.

 

[JETX]

"My questions is can they actually stop the BK"
*** Possible, but extremely unlikely. The issue would be the source of the judgment. What was the cause of action? If it involved fraud, child support, etc., it could be exempted from the bankruptcy process.

"The money from the judgement was for two car loans both cars were repossesed at least 4 years ago."
*** Okay, with that, the bankruptcy filing would stop the judgment recovery. And if the court allows the judgment debt to remain, it would be discharged in the final ruling. Once discharged, you can file a motion with the court to dismiss the judgments. Be sure to ask your attorney to create the needed documents.

 

[jlc614]

Thanks for your response

Thank you for the response. I would really like to pay it but it just isn't possible. I even asked the bank to drop the interest rate or lower it and they said no, so BK has where I have been left. I guess I am a little nervous and I feel kind of embarassed about the BK. I don't see where I have a choice though: I am barely making it now and my rent goes up next mont, my husband pays child support and day care expenses for his son which is most of his paycheck. I have my own son who I would like to be able to save for college for and I just can't make any head way with the debt. Thank You again