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  1. #1
    Join Date
    Jan 2009
    Posts
    7

    Default File Bankruptcy Immediately or Wait Till Better Situated

    Hi,
    A lawfirm has filed a lawsuit against me in MI over a credit card debt. It's going to a pre-trial in a couple days. I'm going to have to file for bankruptcy over this and other debts. If the lawfirm finds out or I tell them I'm filing for bankruptcy, will they drop the case? My dilemma is that the cost of filing for bankruptcy will wipe out my meager savings. I'm unemployed and also need to move. I need those savings for my move/rent payments. If I lose the lawsuit, without a job I have no wages they could garnish. If I file bankruptcy now, it will show up if a potential employer or landlord does a credit check on me. I thought maybe I could hold off filing till I at least found a new job and home. Is this an option or if I lose the lawsuit and have no job do they just seize my bank accounts/possessions?

    bye

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: File Bankruptcy Immediately or Wait Till Better Situated

    How meager are we talking about? If meager enough, your savings may be exempt. You can get a free consultation with a bankruptcy lawyer - I suggest starting there.

    The law firm is unlikely to drop the case if you say you're filing for bankruptcy. If you file, odds are their claim will be resolved in the bankruptcy. (I'm assuming it's credit card debt.)

    Yes, your bankruptcy will show up on your credit report. As do your various delinquencies. As will a judgment the credit card company obtains against you.

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: File Bankruptcy Immediately or Wait Till Better Situated

    Agree, I would talk to a bankruptcy attorney to go over your options with you. We don't have complete information such as the amt. of your credit card debt/other debts, amt. of your savings, etc.

    Good luck.

  4. #4
    Join Date
    Jan 2009
    Posts
    7

    Default Re: File Bankruptcy Immediately or Wait Till Better Situated

    Quote Quoting Mr. Knowitall
    View Post
    How meager are we talking about? If meager enough, your savings may be exempt. You can get a free consultation with a bankruptcy lawyer - I suggest starting there.

    The law firm is unlikely to drop the case if you say you're filing for bankruptcy. If you file, odds are their claim will be resolved in the bankruptcy. (I'm assuming it's credit card debt.)

    Yes, your bankruptcy will show up on your credit report. As do your various delinquencies. As will a judgment the credit card company obtains against you.
    By "meager" I mean, I just finally saved up the $2,000 I was told filing for bankruptcy would cost me. That's almost my entire savings and filing will clean me out. My CC debt is at least 25k by now. Besides my job search/apt search concerns, one of my parents helped me out by making a contribution to my IRA this year. I read that if you file for bankruptcy in MI, IRA contributions made in the previous 6 months are NOT protected. I was hoping to delay filing till later this year to protect my IRA.

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