What happens?

[almostsm]

What is the name of your state? Wisconsin

I gotta file bankruptcy. It costs $1,250 through the lawyer I'm going to use, and I paid him $500 back in March. I thought I'd be able to pay the rest by the end of the summer, but I was wrong- I couldn't pay ANY of the additional $750. However, within the next month I will be getting that amount, and will immediately send it to the lawyer so that we can continue our "business."

Yesterday I was served a summons from one of my creditors, and I have 20 days to respond to it. What if I can't file the bankruptcy before then? I mean, we're talking I have to pay the lawyer, then he has to rush around and get things in order (because I'm sure he put all of that aside since I haven't had contact with him since March,) and THEN file before the 20 days is up, and that's IF I get the money before then (there's no question about me getting the money- I WILL get it, just maybe not within the next 20 days.)

I've never been in this situation. Say I don't respond to this summons and "whatever" happens. Do they typically do the lien against property, or do they try and garnish wages? I work at an Indian casino, and therefore I have to sign off on any wage garnishments (which of course I'm not going to do.) Then the creditor (or his atty's) will have to go through the tribal court to make it a valid order, which can take a year, and THEN wage garnishment will take effect.

If all of this happens before I can file the bk, how will it fall into place once I file the bk? Of course I'm not going to tell them I'm going to file the bk.

Any other advice or information is GREATLY appreciated. Thank you in advance.

[racer72]

What if I can't file the bankruptcy before then?

Don't worry about it. It will still be months before the lawsuit comes to trial and a judgment will be granted. Even if a judgment is granted, the day the bankruptcy is filed, any and all collection efforts for all debts must stop.

Of course I'm not going to tell them I'm going to file the bk

Why? Doing so my stop the lawsuit in it's tracks. Send them a letter stating you are filing bankruptcy and give them your attorney's name and address. That's generally enought to stop most creditors.

[Ladynred]

You still need to properly ANSWER that Complaint within the 20-day deadline, otherwise you lose on day 21 and that gives them that much more time to do their damage.
Make your answer a general denial of all allegations and you'll be more likely that they'll actually schedule a court date rather than just granting the creditor a summary judgment. Definitely get in touch with the BK lawyer and let him know what's going on and that you do still intend to file BK once you get your money.

If you let them get the judgment, then it will complicate things in dealing with that judgment after you get your discharge.