@ what point should one consider CHPT 7?

[i'llBEback]

What is the name of your state? CA

In advance... thanks for any input. NEWBIE here.

I've been out of a job... going on two years now.
I have six (unsecured) debts delinquent. Have been contacted by three CA's, have sent reg.letters off & have heard nothing more from them. This week another CA (for Citibank) called (informing me it was re: "our litigation") & today I received a (disguised) collection letter w/ a law office "heading" on it. Note: most of these debts are 4-5 mos. delinquent, I have no assets and no steady job/paycheck (though I am seeking work).

My question is: Should I wait for it to get worse? To be served legal papers from a court/atty office or maybe even wait until "Judgements" are made against me before FINALLY filing for Chapter 7? OR Should I do it now?

I fear going through a Bankruptcy as I've always made good on all debts & had excellent credit........... But as we all know... stuff happens.

 

[bigun]

Whatever you decide, remember that on 10/17 the bk code will change and a chapter 7 will be a far more difficult process. Also, I would not let thm get a judgment. That's just more time and legal fees post bk discharge to get it vacated.

 

[i'llBEback]

CA

Thx Bigun.

Feel I'd like to put off filing CHPT 7 as late as possible, maybe that's wishful thinking (as I look for regular work).
Also, I have heard that sometimes it's better to file BK than to let your credit suffer any longer (as that will reflect as bad as BK). True?.

I will seek counsel.

Presently I don't feel CA's would waste their time w/ me @ present as I have no paycheck to garnish & have sold most of my property to stay afloat (over a yr. ago). Would also think that the CA's would like me to continue to not file until after 10/17/05. (Why would they want to light a fire under me now?)

Does anyone know how long before things will go "Legal"... served a summons?

Is the process? : 1-note from atty office of suit being brought 2-summons 3-court 4-judgement............? Guess I'm asking this b/c I want to know if there's a possibility of getting a jump on CA's before a judgement is made.

Again any thoughts/advice is appreciated.

Thanks.

 

[giggle50]

Don't wait too long. Once the new bankruptcy law goes into effect, credit counseling is required.

 

[bigun]

Nobody can say with any degree of assurance what your chances of being sued will be.
As to the credit report-I just don't know. BK is as bad as it gets but as time goes on, the impact seems to be less and less.

 

[i'llBEback]

thx.

will i be sent a registered letter before a suit is filed?

also does anyone know if you can do an emergency filing by yourself & then secure an atty for the actual filing?

 

[momtobabyzac]

just my experience

i live in arkansas. quick info about debt: $1500 medical debt we've been paying $20 a month on and CA was mad that i didn't just use a credit card to pay debt.
we received notice of lawsuit almost right at 60 days after receiving notice from lawfirm that they were now trying to collect debt. i don't know how long til a judgement is entered since we are not disputing it. we did not receive a registered letter. we were served by a process server and had 20 days to dispute.
if i were you, i would try to do a few things in case you do have to file an emergency petition.
A. find out about what a lawyer charges in your area, most will not file at all until you have paid in full plus the $209 filing fee. so you need to figure out where you are going to get the money if you have to file in a hurry.
B. gather your creditors info,names and addresses and try to sit down and list your living expenses and assets( i've run across some official and unofficial form online that can at least give you a starting place.) this will keep you from forgetting something important if you get in a hurry plus i think you only have so many days to get all the paperwork done after filing.
C. set up a free consult with a lawyer, they can give a lot of helpful info plus you don't want to get stuck with a loser just because you didn't have time to shop around. anyway good luck to you and sorry this was so long.

 

[i'llBEback]

Thx for your info & help... & yeah, I'm meeting w/ several attys next week. Hopefully will find someone great. Don't even have a clue as to what's fair to charge for a no asset Chapt. 7. Will probably simply compare rates & go from there.

look forward to lookin' past all this.