Got served papers!!!

[Broken]

Illinois:

We consulted with an attorney on this past Wednesday about filing for BK, and that very night, we got served with papers. We got a hold of the attorney right away, and they're going to try to get our BK filed before our court date of May 13. Now... my question is, if we don't get things done before then, and I have to go to court, if they get a judgement against me... will the BK get rid of it? Or will I just go to court, listen to them make their speech, and then go home and wait for it to be discharged?

Thank you all for your help!

 

[Ladynred]

There is a way for the lawyer to do a quick bankrupty filing that will stop the judgement in its tracks. You would then finish the process of doing all the paperwork and going forward with the bankruptcy proceedings. The lawyer should certainly be able to do that much way before the 13th.

 

[Broken]

From the sounds of things, it will get done prior to the hearing. BUT... in the event that it doesn't, are they going to start garnishing my wages? Will it get discharged with everything else?

 

[Ladynred]

It will get discharged with everything else, but once the judgement is granted, you'll probably have to pay an additional fee to have the judgement vacated. Once the bankruptcy papers are filed, all collection activity must stop. Even if the lawyer doesn't get the petition filed before the 13th, it would take a little time before the garnishment (if that's what is granted) could take affect. There's also a 90-day preference period (if its handled correctly by the bk lawyer) that would allow any garnishments taken in the 90 days prior to filing for bk to be returned to you.

Are you going to appear in court for the judgement hearing ? If you don't, they'll win the judgement by default. I don't know if telling a judge that you're in the process of filing for bankruptcy would have any affect on whether or not the judgement is granted, but it might, especially if you have proof of some sort that you have retained a lawyer for bankruptcy. What would be the point of granting a judgement that is most likely going to be discharged and vacated a few months down the road anyway ?? I could be wrong, but I'd try it if it were happening to me.. and it might !!

 

[nailtech]

Broken:,.
I had the same thing happen to me, I told my CUnion on a thursday I was filing Bk, friday she had me served I had 10 days to respond, I was at the mercy of these boards cause at the time I couldnt get an answer from my attorney other then "Dont worry about it"..... well yes I was so worried to the point of nausia...
I was told the BK will get rid of the judgement but mine didnt go that far, I called the JP who handles the Judgements in our county and told them the day before my last day to respond and explained to them what was happening, they dropped it,.

if you need to buy some time, you have at least one time to reschedule the court date... wait until the last minute and reschedule, then file, and call before court date and explain whats going on... if not the judgement will be washed away by the BK....

here is the thread on my judgement question...

click here

 

[Broken]

My wife called to try and reschedule the court date. The attorneys office said, "Well, would you like to make payment arrangements?"

My wife told them that we were filing BK.... they said "No, we won't change the court date." She did tell them that we wouldn't be able to make it, so isn't it kind of shady that they won't allow us to change the date because they know we're filing? I have to work that day, so we're not lieing about not being able to make it.

 

[Ladynred]

If you don't appear in court, they will win their judgement by default, and you will be forfeiting your chance to speak your piece in front of a judge. Have you tried calling the clerk of the court to see if you can have the date changed ?? They control the court calendar, not the attorneys. If your employer won't let you off work that day, explain that to the court and explain that you would like to have the date changed. Essentially you're representing yourself here, so, in the absence of an attorney to do this for you, you might be able to get it changed. Forget the attorney who's representing the creditor, they're not going to do anything that would favor you.

I'd also light a BIG fire under your BK attorney and get him cracking on filing your bk ASAP.

 

[bigun]

There's plenty of time. I assume you and your wife have the bk package? This wekend, just make this your project. Get it filled out and to the lawyer first thing Monday morning. Don't have any other contact with any lawyer except your lawyer.

 

[nailtech]

It should have a court number or place on the summons... call that place not the other attorneys office...
the court is neutral they wont give you the slack the attorneys office is giving you... you are intitled to reschedule the date at least once if its small claims court...

then file BK ASAP and send the BK court filing number to the attorneys office and if they continue to pursue it further they could get into trouble for harrassing you from the BK courts/trustee...

 

[srhng]

The creditors atty is hoping your bankruptcy will be dismissed or converted to a 13. They dont mind wasting thier money. The payoff may be worth it.

If it is dismissed. You are on the hook after dismissal. If it is converted to a 13. They become a priority creditor (dont they?).

If it is discharged in chapter 7. They wasted thier time. Its a 66% chance of success on thier part.

I got sued during the preparation of my chapter 7. I was told that everything would be ok, not to worry. It gets wiped clean when the 7 is discharged anyway. They were only half right. The creditor cannot collect on it. But it is still in the courts for all the public (and prospective employers) to see.

I would try to stall the court date until you file. I was told even if I appeared, intention of filing for bankruptcy is not a defense. They would have gotten the judgement anyway.