Insolvency

[flume]

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

I am going through an extremely difficult financial crisis right now and I am doing everything I know of to avoid bankruptcy. I feel another lawsuit from a creditor may just around the corner. I successfully negotiated and paid the settlement arrangement on the first lawsuit. The timing and cash flow worked. I cannot afford an attorney and I cannot afford another settlement arrangement for the time being. I am doing everything I can to keep a roof over our heads and groceries in the refrigerator. Is there anything I can do in advance like file a statement with the Clerk of Court in my county that declares I am insolvent? Any advice is greatly appreciated. Thank you!

[Debt Guy]

Not really. The court does not care that you are insolvent. If you are sued, the only interest of the court is to determine facts as are placed before it as to your liability for the defaulted debt.

If a judgment is awarded and the creditor seeks a garnishment, you can ask the court to consider your hardship -- some judges will and some won't. You just never know.

You could send such a notice to the creditor. Don't expect them to get very excited as they are told about a thousand times a day "I can't pay". They are numb to it and probably don't care anyway as they are just doing a job.

There are worse things in life than bankruptcy. Sometimes bankruptcy is the right choice and if things are as bad as you describe and a garnishment would put you over the edge, then you really ought to think about bankruptcy. Call and bankruptcy attorney as discuss -- the consultation will be free.

Good luck.