Chapter 7 bankruptcy and Debt Questions

FloridaCoast09 · #1 09-04-2009, 11:21 AM

What is the name of your state (only U.S. law)? FL

Situation:

Lived in another state prior to Jan 02, 2009.

Paid monthly on credit cards, never missed a payment.

Divorce finalized Sept. 01, 2008, turned over title to house (my name still may be on the morgage but am no longer "owner" of the house).

Moved to Florida Jan. 02, 2009 with boyfriend, got a job to pay bills... Lost job due to economy.

Became pregnant (currently 35 weeks along). Kept trying to find a job and still looking with no luck.

I currently have no income, living with boyfriend who is paying for household bills (we currently rent). Have one asset (1995 car, no payments).

Have not been able to pay credit card debt since Feb of 2009. I called the cards to let them know my situation but nothing came of it. Since then they have been calling me (multiple times a day, including weekends, holidays and evenings - 9pm, 10pm). Got letters informing me they may take legal action. Yesterday recieved a voicemail from a company (They did not tell me what company) that said their employees made multiple attemps to contact me and that I need to call by the end of the month to talk about this debt or the situation will escalade and once that happens no further action will be nessassary on my part.

Total estimated credit card debt: $8,000 (Since I have not been paying they have tacked on late fees, over the limit fees, etc... So might be slightly higher).

My questions

What can they do?

What happens if they sue me? I have no income.

What legal rights do I have to fight if they sue? And what happens if they win?

I am considering filing for bankruptcy chapter 7..

If I file for bankruptcy what happens to the house that I previously signed over to my ex?

Does Chapter 7 take away my car?

I do not have money for a lawyer, would one be recommended on my part... or would the paperwork/filling be enough?

Any other thoughts on my case would be helpful, thank you.

StephenH · #2 09-04-2009, 12:09 PM

What can they do? Sue you for the value of the debt plus interest, court costs, attorneys fees, etc

What happens if they sue me? I have no income. Well, the judgment will remain and accrue interest for many many years.

What legal rights do I have to fight if they sue? You should check to see if the debt is beyond SOL or not. And what happens if they win? They will get a judgment against you and it will remain for a long time

I am considering filing for bankruptcy chapter 7..

If I file for bankruptcy what happens to the house that I previously signed over to my ex? If you already signed it over and you are divorced, and your name is no longer on it, then nothing.

Does Chapter 7 take away my car? Depends on the value and exemptions allowed in your state. It sounds like a 14 year old car is probably not worth much.

I do not have money for a lawyer, would one be recommended on my part... or would the paperwork/filling be enough? You can file yourself, but a laywer is recommended.

Any other thoughts on my case would be helpful, thank you.

bigun · #3 09-05-2009, 03:53 PM

I'd not file bk over $8K.
Your problem isn't the amount of debt but, lack of income. You still have to support yourself post bk and you can't do that with no income.
Your priority needs to be getting your personal and financial life stable. At some point going forward, you can likely settle these debts. Bk is gonna be overkill.

dfromnyli · #4 09-05-2009, 04:52 PM

Quote: