Please help! My best defense in this situation?

[pandora77]

What is the name of your state (only U.S. law)? Indiana, Marion County

I have a judgement entered against me for a medical debt. It was a default judgment because I didn't receive the summons and complaint until after the fact of the court date. I own a house and a car free and clear (due to inheritance). I have several medical accounts that I was planning to file banktuptcy Chapter 13 and pay off in the payment plan, but I lost my job just this last Friday. I am ordered to appear in court for a proceedings supplemental hearing this week. I have a little cash on hand to start making payments for this debt, but not nearly enough to pay off the judgment. I want to negotiate a payment plan with the plaintiff lawyer, but am afraid they will try to take my house or car instead. Marion County was recently slammed in the WSJ for corrupt small claims court practices... and the township my case will be heard in is frequently "forum shopped" by lawyers for being the most favorable to plaintiffs in medical debt. What is the best way to deal with this? Can they take my house and car by order this week, or is there a process before they can go that far? I am a nurse and plan on getting a job soon, along with filing bankruptcy. Will the offer of paying off the debt in the Chapter 13 be enough for the plaintiff? What are best my defenses to avoid a writ of execution against my property? I am aware of homestead exemptions and exempt property, but they are pitifully low in Indiana and my property exceeds their value.

Thanks for any advice!

 

[OHRoadwarrior]

It appears you intentionally ran up your bills, hoping to declare bankruptcy on them. You missed one deadline. Appear and pay, as you stated, you intentionally bought property you could not afford.

 

[pandora77]

It appears you intentionally ran up your bills, hoping to declare bankruptcy on them. You missed one deadline. Appear and pay, as you stated, you intentionally bought property you could not afford.

Actually, I inherited the property due to my mother's recent passing. I intend to pay off all of my medical debt in the Chapter 13 plan (I am not seeking to have it forgiven), and I was very close to filing this week, except that I lost my job... .so yes, it may appear that I intentionally ran up bills, but due to caring for my mother and dealing with other hardships, I could not afford to pay the debt. I also have six figures of student loan debt, so that is why some of these medical bills got lost in the shuffle. None of it was intentional and I do want to pay it. Does that make more sense?

 

[OHRoadwarrior]

Yes, it does. With all the debt you have, it appears selling the property, to pay debt, will give the best outcome.

 

[pandora77]

I have considered it, but would rather just make payments so I still have a secure roof over my head. With my uncertain job prospects, selling off my house and car seems foolish. I could end up on the streets... and it wouldn't even pay off a third of my total debt. It is a very modest home worth less than $50K and the car is not worth much either.


My question is how to best negotiate with the plaintiff lawyer to accept my offer of making payments.

 

[xylene]

You are going to file BK

You won't lose your modest house or car.

DO not be bullied!

DO keep better track of your debt and court proceedings about it.

Go to the court date with your BK filing.

Don't agree to any payments until you have your BK proceedings squared.

Do not delay.

 

[gator1]

Once you file for bankruptcy, you will have no need to negotiate anything with the creditors attorney.

Given the amounts at stake are relatively high, you should promptly consult with bankruptcy attorneys to review your current situation and determine your best course of action.

As you probably already know, Indiana only exempts 15K of home equity, 30K for married. So there could definitely be problems if you own your home free and clear.

In your type of case, a good attorney will likely save you far more than if you try to negotiate anything with the creditor or try to wing a bankruptcy on your own.

 

[pandora77]

You are going to file BK

You won't lose your modest house or car.

DO not be bullied!

DO keep better track of your debt and court proceedings about it.

Go to the court date with your BK filing.

Don't agree to any payments until you have your BK proceedings squared.

Do not delay.

The only problem is that I haven't filed because I don't have much income to file on yet... and the court date is this week. I doubt I will be able to file before the court date. Will stating that I plan to file and giving my attorney's name be sufficient? I am afraid they will bully me and demand full payment, by writ of execution... that is why I feel obligated to make payments until I can file. Why would making payments be harmful? Thanks for your support!

 

[pandora77]

Once you file for bankruptcy, you will have no need to negotiate anything with the creditors attorney.

Given the amounts at stake are relatively high, you should promptly consult with bankruptcy attorneys to review your current situation and determine your best course of action.

As you probably already know, Indiana only expempts 15K of home equity, 30K for married. So there could definitely be problems if you own your home free and clear.

In your type of case, a good attorney will likely save you far more than if you try to negotiate anything with the creditor or try to wing a bankruptcy on your own.

Thank you. I do have a bankruptcy attorney, but since I lost my job last Friday and today was a holiday, I have been unable to communicate with him. I notified him to stall the filing until I have an income to make payments with. And to be honest, the court date is tomorrow morning... so I guess I am on my own in this particular situation at least. I am not sure what to tell the judge or lawyer... except to offer to make payments until I can file and pay it off that way. And oh yeah, PLEASE don't take my house. HA. I am sure they will try.

If they do, can they get a writ of execution at the proceedings supplemental or is there a process by which they go through in order to force the sale? Do they have to give me a chance to pay off a lien before taking my property?

 

[BigMouthWino]

The only problem is that I haven't filed because I don't have much income to file on yet... and the court date is this week. I doubt I will be able to file before the court date. Will stating that I plan to file and giving my attorney's name be sufficient? I am afraid they will bully me and demand full payment, by writ of execution... that is why I feel obligated to make payments until I can file. Why would making payments be harmful? Thanks for your support!

The full amount of the judgment is due and payable immediately. Even if you begin making payments when the judgment creditor learns you own a piece of real estate free and clear they will move to execute on it immediately. The only thing to stay their actions is a bankruptcy proceeding. But frankly the bankruptcy trustee may liquidate your home anyway as you have far too much equity to qualify for bankruptcy in Indiana.

As to your prior allegation regarding forum shopping that is ridiculous. You chose to live in that particular forum, the creditor/collection agency sues you where you live.

 

[pandora77]

The full amount of the judgment is due and payable immediately. Even if you begin making payments when the judgment creditor learns you own a piece of real estate free and clear they will move to execute on it immediately. The only thing to stay their actions is a bankruptcy proceeding. But frankly the bankruptcy trustee may liquidate your home anyway as you have far too much equity to qualify for bankruptcy in Indiana.

As to your prior allegation regarding forum shopping that is ridiculous. You chose to live in that particular forum, the creditor/collection agency sues you where you live.

Well, as for the forum shopping, it was just what I read in an article in the WSJ. My county is currently undergoing some reform in response to the allegations. They sued me in a different township than where I live, one where most medical debt is handled in my county. Anyway, that is not my main concern.

I am planning on making payments in a chapter 13. My understanding is that my home is protected as long as I can pay the debt... that is the purpose of a chapter 13, correct? So unless my lawyer is incorrect, or deceiving me, I think that is an okay plan to have. As for "immediately" does that mean tomorrow at the hearing? How long do I have to file bankruptcy until the sale is forced?

 

[BigMouthWino]

Well, as for the forum shopping, it was just what I read in an article in the WSJ. My county is currently undergoing some reform in response to the allegations. They sued me in a different township than where I live, one where most medical debt is handled in my county. Anyway, that is not my main concern.

I am planning on making payments in a chapter 13. My understanding is that my home is protected as long as I can pay the debt... that is the purpose of a chapter 13, correct? So unless my lawyer is incorrect, or deceiving me, I think that is an okay plan to have. As for "immediately" does that mean tomorrow at the hearing? How long do I have to file bankruptcy until the sale is forced?

Why don't you just file for bankruptcy tomorrow? It will be some time before your plan is approved and the payment schedule begins anyway.

 

[pandora77]

Why don't you just file for bankruptcy tomorrow? It will be some time before your plan is approved and the payment schedule begins anyway.

How would I do that before 9:30 AM? I know I still have to take the budgeting class (online) and fill out a questionairre. I can get that done tonight. If my lawyer can't file in the morning before my case, what do I need to do to get it done?

 

[BigMouthWino]

How would I do that before 9:30 AM? I know I still have to take the budgeting class (online) and fill out a questionairre. I can get that done tonight. If my lawyer can't file in the morning before my case, what do I need to do to get it done?

Just get it done tomorrow. Inform the JC in court you are filing for bankruptcy later in the day and make sure you get it done.

 

[pandora77]

I still need to know if they can file a writ of execution tomorrow... and what the process looks like as far as a timeline. If I file after a writ is issued, can it still be stayed by the bankruptcy?