My question involves bankruptcy in the state of: Minnesota
I plan to file Chapter 7 this year of 2020. It is becoming difficult getting an appointment with a lawyer due to Coronavirus, and I am trying to raise the funds to pay a Bankruptcy lawyer, ideally in full, so am without a lawyer right now.
A law firm that deals only in debt collections has sent me several letters wanting to discuss collecting on a medical bill the health provider placed with them. So far I haven't contacted them, as telling them I will be filing Bankruptcy is obviously totally meaningless to them until I have a Bankruptcy lawyer to talk to them. I really don't want to verbally deal with them at this time.
Received a letter from this law firm today stating they are planning litigation against me, and to avoid litigation, contact them at once. (I tend to think they will allow me perhaps another month or so to respond before they take action, if they do take action at all. But, I can't assume this.)
If they do file a lawsuit against me, it would be in small claims court, as the amount due is $ 2428.14.
My question: If they file a lawsuit on me before I file for Bankruptcy, what happens once they receive notification of my intent to file Chapter 7? Since the Bankruptcy judge hasn't granted me dismissal of my debts at this point, what are their options, if any? Even though there is a good chance this debt (and all of my debts) will be dismissed, does it make sense for them to proceed with the court date, even though they have received the appropriate notification of my Bankruptcy petition? I know, I know, you can't read their minds and don't know what they will do. But, any idea what creditors of this nature "generally" do under these circumstances?
Thanks for any serious responses.