Author Topic: Need help delaying creditors so I can file BK  (Read 12193 times)

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catchup

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Need help delaying creditors so I can file BK
« on: January 14, 2015 04:00:53 AM »
First post!

I am newly separated with a daughter in college and struggling financially. I am looking for a full time job but I am currently unemployed.  I spoke to a BK attorney and he advised me to wait six months (will be May 2015) from my last credit card transaction before I file. I have about 75K in credit card debt after attorney fees, cash advances and having my world torn apart this past year. There were no crazy trips or luxurious purchases…just survival and cash advances to pay expenses. My attorney advised me to stop paying any CC that haven't been used in the past six months, as I don't have enough money to keep paying them all. My ex will be paying the mortgage so I am not concerned about that, but I need to know how to hold off the credit cards I'm not paying from suing me. Right now I'm getting the friendly notices asking if I forgot to send them payment.

I know some might say I should just fight them or try to sue them, but I don't think I'm up for that battle…just would like to put this all behind me.

confucius

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Re: Need help delaying creditors so I can file BK
« Reply #1 on: January 14, 2015 05:38:14 AM »
Who cares if they sue you if you're going to file bankruptcy anyway?

fisthardcheese

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Re: Need help delaying creditors so I can file BK
« Reply #2 on: January 14, 2015 10:46:36 AM »
As stated above, if they sue, it will get wiped out in BK anyway.  Plus, generally, they won't sue in the first 6 months of default (they CAN, they just usually don't).  After 180 days without a payment, they will charge off the account at which time they have the choice to sell the account to a JDB or continue to collect which could involve a lawsuit.

In the meantime, they will make lots and lots of noise.  They will do everything they can do get you to pay something to prevent charge-off.  Do not be intimidated by their daily or hourly phone calls and letters that may get more and more serious sounding over time. It's just noise that won't matter to you and can be ignored.

If any of them call your cell phone, I would send a CMRRR letter to each of them stating that you revoke any prior consent to call your cell phone(s).  Keep track of any banks that call your cell phone after they have signed for the CMRRR green card.  Once your BK is over, you may be able to sue them for TCPA violations and get $500 per call after you sent the letter.
11 Arb Settlements (9 AAA, 2 JAMS)
3 JDB Suits Dismissed With Prejudice (2 pro-se, 1 consumer atty)
3 TCPA Settlements (2 pro-se, 1 consumer atty)
2 FCRA Settlements (consumer atty)
1 FDCPA Settlement (w consumer atty)
1 Small Claims Win (pro-se; Landlord/state consumer law violations)
1 State UDAP Settlement (ITS)
1 Federal PTC Settlement (before hearing; pro-se)

HeadsUp

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Re: Need help delaying creditors so I can file BK
« Reply #3 on: January 14, 2015 01:56:26 PM »
If you plan on filing bankruptcy in May, then stop communicating with any of your creditors and debt collectors.

Set your current phone number (since they already know it) to go straight to voicemail, so you won't have to hear it ring.  Turn off the ringer, if possible.

Get yourself a new pay as you go cell phone (Tracfone actually has a Samsung Galaxy Centura smart phone that can cost as little as $7 per month, if you mainly use it over wifi with certain apps from the Google Play store). 

Use your pay as you go phone for relatives and friends to contact you, but tell them to not give your new phone number to anyone, in case debt collectors call them asking for your updated contact information.

This will give you peace at home until you can file bankruptcy, and then the phone calls will cease anyways.


Finally a collector admits it...

"The reality is that there are people who can't pay and the job of an agency in my opinion is to separate those who can and those who cant and to not waste resources and efforts on those who cant." -- Dr. Evil.

All this nonsense about aggressive judgment enforcement against someone with no assets is just that-- utter nonsense.

http://www.debtorboards.com/index.php?topic=13309.msg100303#msg100303

howucantoo

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Re: Need help delaying creditors so I can file BK
« Reply #4 on: January 14, 2015 02:29:27 PM »


Get yourself a new pay as you go cell phone (Tracfone actually has a Samsung Galaxy Centura smart phone that can cost as little as $7 per month, if you mainly use it over wifi with certain apps from the Google Play store). 

Use your pay as you go phone for relatives and friends to contact you, but tell them to not give your new phone number to anyone, in case debt collectors call them asking for your updated contact information.

This will give you peace at home until you can file bankruptcy, and then the phone calls will cease anyways.


This ^^^^^
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kevinmanheim

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Re: Need help delaying creditors so I can file BK
« Reply #5 on: January 14, 2015 02:35:37 PM »
No one is going to sue you this soon. Even if they did, you will have plenty of time to file BK before they could take your bank account or wages -- assuming those actions are even legal in your state.

Be ready for all the calls and letters. Stay calm and realize that their goal is to stress you and scare you into getting the money to pay them -- from anywhere.

They don't care that you are broke. They know you can borrow from friends or family. That's what they want you to do. They want to get their money back before you file BK.

If the calls become too much, ask your attorney to accept a BK filing retainer from you. Then direct the calls to your attorney. The OCs and CAs will usually respect that request and stop calling you.

Bruno the JDB Killer

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Re: Need help delaying creditors so I can file BK
« Reply #6 on: January 14, 2015 03:01:27 PM »
Save every letter they send, and record any calls. If they violate the TCPA and call your cell after you tell them not to in writing, each call is worth between 500 and 1500 to you. If they hire an outside collection agency and that agency violates the FDCPA it is worth up to 1,000 plus attorney fees. There may also be state laws that mirror these statutes, so you can collect twice.

What state is this? For now, you'll be getting "in house" calls from the credit card company's internal collections. The federal FDCPA does not apply to them, but some state FDCPA laws include original creditors, like Texas and California. the TCPA applies to everybody.

Suing them can be tricky if you are filing BK. The lawsuit becomes part of your assets, and if you win the money goes to the trustee. Make sure your BK lawyer is aware of any violations or potential lawsuits.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

haggard

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Re: Need help delaying creditors so I can file BK
« Reply #7 on: January 14, 2015 03:06:16 PM »

What state is this? ...

Suing them can be tricky if you are filing BK. The lawsuit becomes part of your assets, and if you win the money goes to the trustee. Make sure your BK lawyer is aware of any violations or potential lawsuits.

+1
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fisthardcheese

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Re: Need help delaying creditors so I can file BK
« Reply #8 on: January 14, 2015 04:45:37 PM »
Suing them can be tricky if you are filing BK. The lawsuit becomes part of your assets, and if you win the money goes to the trustee. Make sure your BK lawyer is aware of any violations or potential lawsuits.

This is why I suggested waiting until after BK is discharged to pursue lawsuits against them for any potential illegal collection activity.  A BK should only take about 3 months or so, so after you add that to the 6-month wait prior to BK, you still have at least 2 full months (probably longer, since violations will not happen immediately) before any FDCPA claims are SOL and much longer on TCPA.
11 Arb Settlements (9 AAA, 2 JAMS)
3 JDB Suits Dismissed With Prejudice (2 pro-se, 1 consumer atty)
3 TCPA Settlements (2 pro-se, 1 consumer atty)
2 FCRA Settlements (consumer atty)
1 FDCPA Settlement (w consumer atty)
1 Small Claims Win (pro-se; Landlord/state consumer law violations)
1 State UDAP Settlement (ITS)
1 Federal PTC Settlement (before hearing; pro-se)

catchup

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Re: Need help delaying creditors so I can file BK
« Reply #9 on: January 14, 2015 05:09:02 PM »
Thanks everyone!

I am in CT. My attorney has suggested taking the Federal Exemptions versus the state. There is only about $20,000 in equity in the house.
Does anyone have any experience in exempting a personal injury lawsuit that includes loss of future wages? Atty. said for me not to worry about it, but I know the Fed. exemptions include $22,000 for a personal injury lawsuit but it doesn't give an amount for loss of future wages. There is about $50,000 that I am trying to protect. The exact language of settlement says personal injury, loss of wages, loss of future wages.
« Last Edit: January 14, 2015 05:20:00 PM by catchup »

kestrel1940

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Re: Need help delaying creditors so I can file BK
« Reply #10 on: January 14, 2015 05:21:35 PM »
Save every letter they send, and record any calls. If they violate the TCPA and call your cell after you tell them not to in writing, each call is worth between 500 and 1500 to you. If they hire an outside collection agency and that agency violates the FDCPA it is worth up to 1,000 plus attorney fees. There may also be state laws that mirror these statutes, so you can collect twice.



Agreed.  In fact if your attorney is good he may even be able to work out in the settlement that they do not forward the debt to any JDB and cease collection efforts on it.  Then you won't have to file BK. 

Bruno the JDB Killer

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Re: Need help delaying creditors so I can file BK
« Reply #11 on: January 14, 2015 05:32:14 PM »
This is why I suggested waiting until after BK is discharged to pursue lawsuits against them for any potential illegal collection activity.  A BK should only take about 3 months or so, so after you add that to the 6-month wait prior to BK, you still have at least 2 full months (probably longer, since violations will not happen immediately) before any FDCPA claims are SOL and much longer on TCPA.


The problem is when the violations occurred. Waiting until after BK to bring suit may look like BK fraud to the trustee.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

Bruno the JDB Killer

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Re: Need help delaying creditors so I can file BK
« Reply #12 on: January 14, 2015 05:50:21 PM »
Thanks everyone!

I am in CT. My attorney has suggested taking the Federal Exemptions versus the state. There is only about $20,000 in equity in the house.
Does anyone have any experience in exempting a personal injury lawsuit that includes loss of future wages? Atty. said for me not to worry about it, but I know the Fed. exemptions include $22,000 for a personal injury lawsuit but it doesn't give an amount for loss of future wages. There is about $50,000 that I am trying to protect. The exact language of settlement says personal injury, loss of wages, loss of future wages.


(D) a payment, not to exceed $22,975, on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent; or

(E) a payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.

You probably have to give them a financial statement to justify E.

The federal exemptions are better for you because Ct does not give you the lawsuit exemption, and the federal homestead exemption is enough to cover your equity.



I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

flacorps

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Re: Need help delaying creditors so I can file BK
« Reply #13 on: January 14, 2015 07:01:24 PM »
Bankruptcy is for good little consumers.

The strategies discussed here are for the savvy (and in some cases the vicious and vindictive).

If you're just going to BK then this board really isn't that necessary to you. Keep in mind though that BK's clean slate isn't so clean anymore, and creditors do not respect the permanent injunction that replaces the automatic stay upon discharge like they once did.

"Informal Bankruptcy" can be the better option ... and it preserves the bankruptcy card so you can play it if something else unexpected happens a couple of years down the road.
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trueq

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Re: Need help delaying creditors so I can file BK
« Reply #14 on: January 14, 2015 07:26:37 PM »
Is the 75K in CC debt the only reason you are filing BK?

If that is the only reason, I wouldn't.

Invariably, some will sue, and you can force arbitration.    Many may not sue.

Once forced to arbitration, many take mutual walkaway (0%)  or easily take 5% or 10% (if you are generous) for settlement in full.

If you need to save a house or car, then BK may make sense.

If you want it all to just go away today, and can do Ch.7, fine, but don't get caught in the Ch.13 trap over just credit card debt.
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The one bank that beat me in court, I now have a $2200 limit credit card from them again.
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