Posted on: 10th Feb, 2010 12:51 pm
I have been in financial straits for basically the past eight years. I was laid off in July 31, took 27 months to find a full-time job again, only to be laid off from that job by August 2004, just 10 months after I started there (companywide layoffs....8,000 positions).
After the first layoff, I temped and temped, for 27 months, eventually falling further and further behind in my credit cards. I was struggling to pay them, borrowed $30K from my brother, and STILL couldn't keep up. He had told me to file Chapter 7, but I ignored it for a year. Then, finally, when I couldn't keep up with the late fees, etc., I filed Chapter 7 in December 2002, and it was discharged in May 2003. I felt better. I finally found my next full-time job in October 2003, only, as I said, to be laid off again in August 2004. I then started temping again, while looking for full-time work, for years. I continued by credit card payments, through about Jan. '08, when my income completely plummeted. I couldn't find any work, of any kind, after June 2007...not even temp work. I have eight credit cards and haven't paid one of them for the past two years or so. I'm $50K in credit card, have no home, but do have some jewelry, and a stereo. I live with my mother, in her house. My car is paid off, but ten years old. I talked to the attorney who handled my Chapter 7 back in 2002, but I don't yet qualify for Chapter 7, because it's too soon. He said that I can file Chapter 13 even collecting unemployment (even though I only collect $600/month now, because I worked SO little in 2008 and 2009), but I can't even afford his $3,500 fee to file that Chapter.
And now, with all of this, I just received a Summons from one of my creditors for a credit card with an $11,000 balance (one of the eight cards on which I owe). My attorney's fees are $1,500, and I can't afford to pay him even that...and he says I can easily win that case.
My question...if I filed a Chapter 7, what exactly, if anything, would they try to garnish from me, to sell off? I've tried selling jewelry in the past, but they pay a PITIFUL amount....only about 10% of its value, and I certainly don't have anywhere near the amount of jewelry to pay off my creditors. What exactly do they go after in a Chapter 7? I have no furniture, except a bedroom set (which is really my brother's). I'm 48 years with a masters degree, but have not worked in so long that my life has spun completely down the drain, and I am panicked. I live with my 81-year-old mother who does not have the funds to help me out, nor the inclination to do so.
My other question is, what is the worst that could happen to me if I go to court on my own, and tell the judge my predicament...that I am out of work, have been for two years, make only $600/month, and am looking for work every day, and have every intention of paying these creditors the amount I owe them, or a settled amount, at the very least, once I get a job. What will happen to me? My lawyer says that the creditors don't really even have a case, technically, because they don't have my signature anywhere. The documents that were served me have signatures of representatives from the two holding parties of Washington Mutual (former credit issuer) and Chase (current credit issuer, who took over WAMU two years ago). My card was from WAMU, who is no longer. At any rate, my attorney would like to represent me to basically dismiss this case, and then have me file a Chapter 13 for the rest of my debt...I just don't have money for his fees.
What can happen to me in court? I'm aware that other creditors can come after me in this way as well...I simply have no funds. And, I'm living like a complete hermit, and have done so for two years.
After the first layoff, I temped and temped, for 27 months, eventually falling further and further behind in my credit cards. I was struggling to pay them, borrowed $30K from my brother, and STILL couldn't keep up. He had told me to file Chapter 7, but I ignored it for a year. Then, finally, when I couldn't keep up with the late fees, etc., I filed Chapter 7 in December 2002, and it was discharged in May 2003. I felt better. I finally found my next full-time job in October 2003, only, as I said, to be laid off again in August 2004. I then started temping again, while looking for full-time work, for years. I continued by credit card payments, through about Jan. '08, when my income completely plummeted. I couldn't find any work, of any kind, after June 2007...not even temp work. I have eight credit cards and haven't paid one of them for the past two years or so. I'm $50K in credit card, have no home, but do have some jewelry, and a stereo. I live with my mother, in her house. My car is paid off, but ten years old. I talked to the attorney who handled my Chapter 7 back in 2002, but I don't yet qualify for Chapter 7, because it's too soon. He said that I can file Chapter 13 even collecting unemployment (even though I only collect $600/month now, because I worked SO little in 2008 and 2009), but I can't even afford his $3,500 fee to file that Chapter.
And now, with all of this, I just received a Summons from one of my creditors for a credit card with an $11,000 balance (one of the eight cards on which I owe). My attorney's fees are $1,500, and I can't afford to pay him even that...and he says I can easily win that case.
My question...if I filed a Chapter 7, what exactly, if anything, would they try to garnish from me, to sell off? I've tried selling jewelry in the past, but they pay a PITIFUL amount....only about 10% of its value, and I certainly don't have anywhere near the amount of jewelry to pay off my creditors. What exactly do they go after in a Chapter 7? I have no furniture, except a bedroom set (which is really my brother's). I'm 48 years with a masters degree, but have not worked in so long that my life has spun completely down the drain, and I am panicked. I live with my 81-year-old mother who does not have the funds to help me out, nor the inclination to do so.
My other question is, what is the worst that could happen to me if I go to court on my own, and tell the judge my predicament...that I am out of work, have been for two years, make only $600/month, and am looking for work every day, and have every intention of paying these creditors the amount I owe them, or a settled amount, at the very least, once I get a job. What will happen to me? My lawyer says that the creditors don't really even have a case, technically, because they don't have my signature anywhere. The documents that were served me have signatures of representatives from the two holding parties of Washington Mutual (former credit issuer) and Chase (current credit issuer, who took over WAMU two years ago). My card was from WAMU, who is no longer. At any rate, my attorney would like to represent me to basically dismiss this case, and then have me file a Chapter 13 for the rest of my debt...I just don't have money for his fees.
What can happen to me in court? I'm aware that other creditors can come after me in this way as well...I simply have no funds. And, I'm living like a complete hermit, and have done so for two years.
Hi jazzsinger,
I can understand that you are in a tough situation. However, it is always better to contact an attorney and take his help in filing bankruptcy. If you do not submit proper documents, your bankruptcy can get dismissed. You may take help of your brother or your friends in order to get the required dollars to hire an attorney. If you file Chapter 7, you'll have to list all your assets. The trustee will look into it, sell off the assets and pay off your creditors.
Thanks
I can understand that you are in a tough situation. However, it is always better to contact an attorney and take his help in filing bankruptcy. If you do not submit proper documents, your bankruptcy can get dismissed. You may take help of your brother or your friends in order to get the required dollars to hire an attorney. If you file Chapter 7, you'll have to list all your assets. The trustee will look into it, sell off the assets and pay off your creditors.
Thanks