help with summons...

[giulveza]

What is the name of your state? California

I'm a former high-tech worker and was laid-off about 1-1/2 years ago. I paid my credit card bills as long as I could, but eventually my money ran out and I just couldn't pay them any more.

My gross annual income is now under $20k/year.

On Dec. 27th I received a summons that Discover is suing me for a billion dollars...might as well be, anyway.

I'm planning to file Chapter 7, but don't know what do to about my summons.

Do I file for bankruptcy and ignore the summons for now (with the expectation that the automatic stay will take care of it for me) or should I file AND respond?

If I need to respond, is there a specific template I should use and should I mention that I'm filing for bankruptcy in that letter?

Thanks in advance,

Dan

[Ladynred]

Discover doesn't screw around, they routinely sue people for ANY amount. They are nasty and aggressive.

You should file your Answer to the Complaint, otherwise they win by default. Even though you plan on filing for BK, getting your Answer filed will mean they can't just get an outright win. It can take months, particularly in some areas, for a case to come up first for Case Management and then an eventual trial date. This will give you some time to get a lawyer and get your BK filed. While you could file an emergency petition tomorrow and get the automatic stay in place, you'd only have 15 days to complete the paperwork and you shouldn't rush a BK filing, lawyer or no lawyer, if you can avoid it.

It would not be appropriate to state your intentions to file BK in your Answer - its not a statement of fact in answer to the Complaint. Answer with a general denial to start with.

Here are a few links to get you started on how to Answer the Complaint.

[url]http://www.nwjustice.org/docs/205.html[/url]

That one references WA law, so you'd have to substitute CA law where applicable, but it gives you a very good format for your Answer.

The following are also good:

[url]http://www.legalhelp.org/answering_complaint.htm[/url]
[url]http://www.legalhelp.org/affirmative_diffense.htm[/url]

The last gives you a list of the affirmative defenses that you can use in your Answer.

I'd start calling around and get a few free consultations with BK lawyers, but its likely you'll have a couple of months before the suit even gets to court. If it comes close, you can always request ONE extension and buy yourself at least an additional 30 days.

[bigun]

If they do get a judgment before you file for bk, be sure your lawyer knows about the judgment and you reach an agreement on the legal fees he'll charge to get the thing vacated as well as the fees for the bk filing.

[giulveza]

Bigun and Ladynred,

Thank you both so much for you help--I really, really appreciate it!

Dan

[giulveza]

Another question I just thought of that I hope you can help with:

In the summons it says that I am to liable for the amount of the debt, plus 10% per annum from August 31, 2003, plus attorney fees "not less than $979.00".

When I file my BK, what should I put for the amount owed to Discover? The debt PLUS .8333% (10 divided by 12) per month from August 2003? And what about the lawyer fees? Am I liable for those no matter what?

Thanks!

Dan

[bigun]

List everybody. Discover, the collection agency/lawyer. This lawyer is working for free. BK will wipe out the total unsecured debt, the legal fees, interest,etc.

Are you using a lawyer/ If so, just be sure he/she knows everything that's going on.