Wife at Summary Judgement stage, we are in major debt and broke

[esresto]

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

Long story short, I have Cystic Fibrosis. I worked all my life until last year. The last 4 years my health has gotten worse, but worked one or two jobs and wife worked and kept up with medical bills. We always paid. Last year I was on iv's non stop, tests non stop,oxygen, etc. We ran up credit cards and loans, drained bank accounts.
Discover sued my wife for a 25000 personal loan. Signature credit type. We paid 4800 on it before default, but all went to interest. We tried to get lower payments long before default and they told my wife dont bother, we where never behind yet and they would not take 200.00 versus 843.00 a month.
So we said screw them all when no one would work with us. My docs thought I would not make it another year. Well I am still here, in pain and infections, but still taking care of my son and helping around house. My wife works, makes 2000 a month after taxes, I get 900 in disablity and 500 for my son.
We own two cars we have had, 12000 in equity in our home.

I cant find a lawyer to help for a low fee, we tried legal aids and they say we make too much or they picked someone else to help randomly. I filed an answer to the first request for default to extend it.
They sent a discovery answer in their motion for summary judgement with a copy of check, their copy with NO signature or bank cashing on back, a blank check. They sent a statement from Sept 2008 showing principal paid and past due and an affidavidt from a Discover staff member saying debt is real and from attorney that her fees are just and she is expert in financial law.

Questions:
Do I have a leg to stand on that check is not signed, nor any thing on the back, its a copy of what was sent?

Any lawyers in Houston that can help? I can prove I am sick, I offered all creditors gaurantees against life insurance if they could hold off a little while till I am dead? No one wants to help. We literally just cant pay anything, cant find anyone to help with bankruptcy either.

We need both cars, and her check for work is direct deposit. Some legal aids have said they wont go after accounts because its hard for them to find it, others say they can only take what is not used to survive and cant touch my account if labled disability.

What are my options? should I close my wifes account and get a manual check for her? Close mine as well and get manual disability checks?

What about our cars? Transfer titles to others? We are not rich, not hiding millions or thousands even, nor live like even middle class. It cost a hell of alot to be chronically sick. I am 38, one of the oldest survivors of CF.

I really need help, waited way to long I know, but I thought I would be gone and my insurance would take care of my family.

[Proserpina]

Originally Posted by esresto

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

Long story short, I have Cystic Fibrosis. I worked all my life until last year. The last 4 years my health has gotten worse, but worked one or two jobs and wife worked and kept up with medical bills. We always paid. Last year I was on iv's non stop, tests non stop,oxygen, etc. We ran up credit cards and loans, drained bank accounts.
Discover sued my wife for a 25000 personal loan. Signature credit type. We paid 4800 on it before default, but all went to interest. We tried to get lower payments long before default and they told my wife dont bother, we where never behind yet and they would not take 200.00 versus 843.00 a month.
So we said screw them all when no one would work with us. My docs thought I would not make it another year. Well I am still here, in pain and infections, but still taking care of my son and helping around house. My wife works, makes 2000 a month after taxes, I get 900 in disablity and 500 for my son.
We own two cars we have had, 12000 in equity in our home.

I cant find a lawyer to help for a low fee, we tried legal aids and they say we make too much or they picked someone else to help randomly. I filed an answer to the first request for default to extend it.
They sent a discovery answer in their motion for summary judgement with a copy of check, their copy with NO signature or bank cashing on back, a blank check. They sent a statement from Sept 2008 showing principal paid and past due and an affidavidt from a Discover staff member saying debt is real and from attorney that her fees are just and she is expert in financial law.

Questions:
Do I have a leg to stand on that check is not signed, nor any thing on the back, its a copy of what was sent?

Any lawyers in Houston that can help? I can prove I am sick, I offered all creditors gaurantees against life insurance if they could hold off a little while till I am dead? No one wants to help. We literally just cant pay anything, cant find anyone to help with bankruptcy either.

We need both cars, and her check for work is direct deposit. Some legal aids have said they wont go after accounts because its hard for them to find it, others say they can only take what is not used to survive and cant touch my account if labled disability.

What are my options? should I close my wifes account and get a manual check for her? Close mine as well and get manual disability checks?

What about our cars? Transfer titles to others? We are not rich, not hiding millions or thousands even, nor live like even middle class. It cost a hell of alot to be chronically sick. I am 38, one of the oldest survivors of CF.

I really need help, waited way to long I know, but I thought I would be gone and my insurance would take care of my family.

Honestly, it does look like bankruptcy may be the only reasonable option. You've already accepted that the debt is yours - you paid on it - but that's not always the be-all and end-all of the matter.

Please standby for others to respond.

[Antigone*of*Greece]

Originally Posted by Dogmatique

Honestly, it does look like bankruptcy may be the only reasonable option. You've already accepted that the debt is yours - you paid on it - but that's not always the be-all and end-all of the matter.

Please standby for others to respond.

A consult with a BK attorney can't hurt at this stage in the game.

[Proserpina]

Originally Posted by Wirelessany1

A consult with a BK attorney can't hurt at this stage in the game.

I agree wholeheartedly!

(as always )

[esresto]

Months ago I called several law firms to set up Bankruptcy interview and start it, and after phone screening, all sent me to Lone Star Legal Aid, and Harris County Legal Aid, saying they would help for low cost or no cost and my situation warranted that. At the time I had 1100 I could pay towards it and most searches showed average cost in Houston for Chapter 7 was 1500.

But no one would take an appt. so now all aide places have said we are too rich, I can come up with 1500 somehow, but would love it if anyone was from here and knew an attorney that may need some pro bono for this year or would trade for mechanical work, I was an auto restoration tech for 18 years.

I would like it done asap to help avoid the judgement on her, any type of asset freeze or lien on any property. From the code I read in Texas, you can have a homestead, 60000 in personal property, a vehicle for every adult and one for a minor if that vehicle is neccessity for minor to be taken care of. Savings, retirement, annuities, disability, etc cant be seized, and any accounts clearly identified as being those cant be touched or the creditor can be sued for seizing them.

Seems to also say that a bank account that is basically the paycheck being deposited so checks and bills for day to day survival can be written off of, is basically protected so long as there is not a leftover balance building a type of savings or interest.

I realize I can have judgement irradicated after its rendered through bankruptcy, and the enforcement of the judgement is not immediately, it takes a while for creditor to gather information. I just cant find clear timelines, or a specific clear detail on my wifes pay/direct deposit checking account, and or vehicles. I am disabled now, but still drive to take son to preschool, doctors, groceries, etc, so I need the car.

I hate having to do this all, my credit report shows on time paying, huge debt paid off early, always double or more minimum payments, all types loans over the years paid in full and early, then suddenly everything is behind at once. I kept trying to get creditors to look at my case individually, work at some sort of low low low payment just to show intent until my life insurance came available to my wife to pay it off. There is no miracle that will happen to me to allow me to go back to full use of my physical abilities, I have even tried office work, I am not dependable as I can go from feeling somewhat ok to move around and sit and work, to extreme high fevers adn gasping for breath quickly.

I appreciate insight and advice, trying to get someone to help in next few days to get going. I realize people hear sob stories all the time, most being BS or so, but I really have worked multiple jobs at a time all my life to offset cost to keep me breathing and always provided for my family.

[Proserpina]

Originally Posted by esresto

Months ago I called several law firms to set up Bankruptcy interview and start it, and after phone screening, all sent me to Lone Star Legal Aid, and Harris County Legal Aid, saying they would help for low cost or no cost and my situation warranted that. At the time I had 1100 I could pay towards it and most searches showed average cost in Houston for Chapter 7 was 1500.

You can pay the filing fee in installments actually - usually four in number and can be spread over a couple of months though for obvious reasons attorneys will require complete payment before they'll file on your behalf. There's also the option of going pro se - without an attorney. Frankly it's not something usually recommended unless yours is a very basic no-asset case.

But no one would take an appt. so now all aide places have said we are too rich, I can come up with 1500 somehow, but would love it if anyone was from here and knew an attorney that may need some pro bono for this year or would trade for mechanical work, I was an auto restoration tech for 18 years.

Let me look into that - I'm not an attorney but may be able to find some more resources for you.

I would like it done asap to help avoid the judgement on her, any type of asset freeze or lien on any property. From the code I read in Texas, you can have a homestead, 60000 in personal property, a vehicle for every adult and one for a minor if that vehicle is neccessity for minor to be taken care of. Savings, retirement, annuities, disability, etc cant be seized, and any accounts clearly identified as being those cant be touched or the creditor can be sued for seizing them.

Please be aware that even if the debt which resulted in the lien is discharged this does not automatically strip the lien.

Seems to also say that a bank account that is basically the paycheck being deposited so checks and bills for day to day survival can be written off of, is basically protected so long as there is not a leftover balance building a type of savings or interest.

As soon as you file nobody can touch your bank account (other than, perhaps, the IRS who are able to offset a debt without violating the automatic stay). You are allowed to earn and pay your bills as normal, and yes, even keep a small balance.

(actually from the moment you file no creditor can continue or begin further collection efforts period - no garnishment, levy, lien, nasty letter, phone call...again with the exception of the IRS and possibly CSE)

I realize I can have judgement irradicated after its rendered through bankruptcy, and the enforcement of the judgement is not immediately, it takes a while for creditor to gather information. I just cant find clear timelines, or a specific clear detail on my wifes pay/direct deposit checking account, and or vehicles. I am disabled now, but still drive to take son to preschool, doctors, groceries, etc, so I need the car.

That's very difficult to answer - the time between a suit being filed and obtaining the judgment can vary greatly and it's the same for the time between being awarded the judgment and collection efforts.

I hate having to do this all, my credit report shows on time paying, huge debt paid off early, always double or more minimum payments, all types loans over the years paid in full and early, then suddenly everything is behind at once. I kept trying to get creditors to look at my case individually, work at some sort of low low low payment just to show intent until my life insurance came available to my wife to pay it off. There is no miracle that will happen to me to allow me to go back to full use of my physical abilities, I have even tried office work, I am not dependable as I can go from feeling somewhat ok to move around and sit and work, to extreme high fevers adn gasping for breath quickly.

I appreciate insight and advice, trying to get someone to help in next few days to get going. I realize people hear sob stories all the time, most being BS or so, but I really have worked multiple jobs at a time all my life to offset cost to keep me breathing and always provided for my family.

Please stand by - there are one or two things I want to try and find out for you.

[dfromnyli]

Your situation sounds perfect for bankruptcy, gl with everything.

[Wyldrush]

You can actually file bankruptcy on your own now, you do not need an attorney however all paperwork needs to be in order. However I believe you can not file Chapter 7 because you have $120,000 of equity in your home. Chapter 7 means you have less than $2,000 in assets I believe. Filing Chapter 13, will mean payments but the court trustee sets the terms and you need to keep up with the payments. This will lower your bill alot with Discover.

I recommend you call an organization that deals with patients of CF and maybe they can point you in the right director to a lawyer. I am sure they have some outsourced programs for people in your position. Also do you have a college with a law program in your area. Maybe a law professor there can assist you with filling out paperwork or the case. I live in Fl and Nova Southeastern University had a law professor handle a friends paperwork for free during his messy divorce because he could not afford an attorney.

[Proserpina]

Originally Posted by Wyldrush

You can actually file bankruptcy on your own now, you do not need an attorney however all paperwork needs to be in order. However I believe you can not file Chapter 7 because you have $120,000 of equity in your home. Chapter 7 means you have less than $2,000 in assets I believe.

That is absolutely incorrect.

A millionaire can still qualify for ch. 7 (should s/he fail the means test) depending on the difference between their total debt and their disposable income.

(This doesn't even touch on the issue of exemptions btw)

[Country Living]

It's a long shot - contact the Houston Cystic Fibrosis Chapter and ask if they have any attorneys doing volunteer work for the chapter.

[haplesshome45]

[quote=Wyldrush;2400300] However I believe you can not file Chapter 7 because you have $120,000 of equity in your home.

The Original Poster actually stated the equity was $12,000, not $120,000.

Nonetheless, I suspect it does not matter. My understanding of the Texas home exemption statute is that the primary residence is completely exempt.

Either way, with 12K in equity you have no equity for the purposes of the Bankruptcy Court ("USBC"), as the trustee would have disposal costs associated with any sale of asset so it would end up being abandoned back to the Debtor (that is you).

You are a classic case for the USBC. You live in a State that grants substantial State exemptions, you have no money, you have little if any real home equity, and you have, for now) an unsecured debt.

Since only your wife is the Obligor on the Discover card, unless you have substantial other debts there is zero reason for you to participate on the USBC filing. If your wife goes in alone then your credit is immune.

I would not offer creditors a slice of your life insurance proceeds; that makes no sense. Your wife will need those proceeds when you are gone.

Discover wants to play hardball; time to go file. I suspect your wife qualifies for a Chapter 7; she would not develop enough income to push her into a 13. You have to look at the means test.

Note that you MUST do a credit counselling session and get a certificate before filing, unless you file and at that same time declare to the Court that you could not get the counselling session because of scheduling problems, and you have one scheduled for x days in the future. So get the counselling session done, it will cost you about $60. It is mandatory. Do it NOW, like TODAY. get your appointment lined up. You can find these places by asking the USBC court for a list of approved counselors, or try on-line, or just ask around. But this is a MUST.

You can file a bare-bones petition with nothing more than the first page and the signature page and no "Schedules" just to trip-wire the automatic stay, but then you will be issued an Order that you have to file the other schedules within a short period, about two weeks. You have to file or be defaulted and barred from the USBC for some time, probably another year. Your schedules can be filled in rudimentarily and a revised set that is more complete filed as an amended set; schedules are routinely revised, sometimes several times, in a USBC case.

If you cannot find a USBC attorney pro-bono you can definitely do it yourself; just be careful to follow exactly all the Court Orders. Judges see hopeless debtors' cases all the time; I would suspect Discover is not even going to bother showing up. There is nothing to collect from.

If you just have your wife file and then she gets bumped out, then you can still protect your house by your filing separately afterwards. That is why you only want to have the first debtor file. If you do it "jointly" then if you get bumped out for technical stuff then you are both barred and the creditors can come and haunt you. You would be surprised how many bankruptcy attorneys have not figured this out.

[haplesshome45]

When your wife files her bankruptcy petition you also have her file a "pleading" that is captioned "Notice of Bankruptcy" with the state court collections action. That Pleading merely has the caption on the top and you write Notice of Bankruptcy for the heading and then say in effect: "Please take notice that the Defendant XXX herein has filed a Petition with the United States Bankruptcy Court for the District of XXX [East Texas?] under docket filing number 09-yyyyy on [date],. All further proceedings in this state court matter are stayed."

You sign it, take it to the clerk of the state court, file it, get a stamped copy, and also send a copy to the attorney for Discover. That stops them cold.