Massive Debt

[Queenbgm]

What is the name of your state?OK

I have approx 25K in credit card debt. I am about 60 days behind on payments. I have been sending small payments to each creditor. I plan to file bankruptcy. I was advised to stop using the cards and wait 90 days before I file. The last time I used them was 10/9/04 for food. Now I am getting lots of calls from collection agencies threating to sue me. What can they sue me before I file for bancruptcy? My husband has been out of work for the past 9 months. We are barely making our essentials and house payment. Everything is in my name.

 

[bigun]

In theory, they can sue anytime but in reality, they'll very likely do nothing for at least 6 months or more from first default.

 

[azgrandpa]

Apparently that $25K seems like a humungus debt to you; but it really isn't out of line with the average person's debt, nationally!
For sure, you did right to stop using the cards because, you don't want it to look like card fraud if you file! The fact that you used it for essentials will help if questioned about why you used the card, if you knew you couldn't make the payment! I answered that question, one time, with "I thought that was what a credit card was for. To help when financial times were a little hard!" It totally left the person on the line speechless!

If you are going to file BK7, and can't afford an attorney, (most of us can't because they think they're blood stream runs full of gold!), then I highly recommend Nolo's book How to file Chapter 7 bankruptcy.

If you are sued and you file for BK before the court appearance, then the court appearance will be stopped, if you notify the court of the filing.

 

[Who's Liable?]

Shop around for BK attorneys... most average around the 1200-1500 range... Don't just go to any BK lawyer but do some research on a few then pick the best one... Most will have a free inital consultation, and a lot of BK attorney will also take payments plans of $300 a month until you file, and during that time they will give you a card with a list of things to tell the creditors to stop calling you since you are filing BK and to contact them... A lot of creditors will try to scare you by saying you will go to jail, or you're a deadbeat etc... but it's a tactic to try and get you to pay...

 

[Queenbgm]

Another question

Can they garnish my wages and freeze my bank account? I have been told one day I they will take all the money out of my checking acount without having to tell me. Is this true?

 

[bigun]

They'll have to sue you and win to be able to garnish wages.
I'll bet a cookie a debt collector told you that.
How do you know when a collector is lying?

Their lips are moving!

If you truely intend to file, quit talking on the phone. Send them all a cease and desist letter saying no more contact. Get a police whistle and blast 'em right in the ear. They'll quit soon enough.

 

[azgrandpa]

I have read a lot of posts here where the debtor had a sneak attack on their wages and/or bank accounts! I don't know if those people just ignored the notice of suit or if the creditors use the questionable tactic of sloppy notice to pull a sneak attack on the debtor's funds!

So, you might want to open another account that they don't know about. (I'm assuming you've paid your bills in the past with checks from your present account).

If you've moved since you started having collection problems, you are a prime candidate for their sloppy notification practices!

As for the phone calls; you might do what I did, which is to pay a little extra to the phone company for their "distinctive ring" service. This gives you a second number that rings different so you know it's not a bill collector! (Be sure to have the second number unlisted so they can't get it)!

Leave the original number connect to your message service or recorder. That seems to stall them for quite sometime! Eventually they will pass your debt to another collector when they can't get you to answer!

Most of us don't like being in this situation; but, we're in it now so it's survival of the fittest!! Good luck.

 

[Queenbgm]

Thank you for the advice, it has been most helpful!

 

[Rhubarb297]

They'll have to sue you and win to be able to garnish wages.
I'll bet a cookie a debt collector told you that.
How do you know when a collector is lying?

Their lips are moving!

If you truely intend to file, quit talking on the phone. Send them all a cease and desist letter saying no more contact. Get a police whistle and blast 'em right in the ear. They'll quit soon enough.

That reminds me of another joke. How do you know when a debtor is lying?

Their lips are moving!

 

[Rhubarb297]

Can they garnish my wages and freeze my bank account? I have been told one day I they will take all the money out of my checking acount without having to tell me. Is this true?

From what you're saying, it seems highly doubtful they would get a judgment before the BK was filed.

And as far as garnishment or attachment of bank accounts, you're talking about proceedings supplmental (pro sup) to the issuance of a judgment. Yes you should get notice but that would be even farther down the road than a judgment.