My court date is next week. Should I contact the creditor/ collector that I will be filing a bankruptcy and there is no need for this small claim? I can I earn some time to file a bankruptcy before my court date for this small claim?
2007-04-13 15:19:23 · 9 answers · asked by Yuki 1 in Politics & Government ➔ Law & Ethics
Actually this small claim is not for me and the bankruptcy is not for me either. I'm a single and taking care of my ill parents. I tried paying their bills off but if is overwhelming with my bills and my responsibilities. My parents have no assets, no bank account, no property (sold last year) and no retirement plans. Is bankruptcy a smart choice here or should I contact the creditors and arrange a manageable payment? Thanks for your help in advance.
2007-04-14 02:18:28 · update #1
God bless America.
2007-04-13 15:32:23 · answer #1 · answered by Mary 3 · 0⤊ 0⤋
Filing for bankruptcy to avoid financial liability for a civil action is a form of fraud that traditionally nullifies the good faith required when entering into bankruptcy. Also, with the recent change to the bankruptcy code, you may not be "free and clear" of your financial debts, including any award against you in the civil suit. You would do better to file a motion requesting or compelling mediation of the dispute to get the small claim negotiated down to something manageable. OF course, if you can't pay it, you are judgment proof and its not like the suing party can squeeze blood from a stone, so the person suing you may be wasting their time anyway.
Keep in mind that if you ever want to have a business or job that requires that you be bonded and insured, this little issue could cause problems. Try to mediate it or fight it.
2007-04-13 15:50:10 · answer #2 · answered by blk justice 3 · 0⤊ 0⤋
Usually no...first you have to file for bankruptcy and there is no gaurantee that it will be granted.
Remember the bankruptcy laws are now different...you have to speak to a court registered credit counselor....mandatory requirement.
Then you have to file for the apporpriate motion...chapter 7 or 13.
In chapter 7 your debts are removed but your assests are liquidated to pay them..you jsut can't waive your debts away anymore...you could lose your house, car or other costly possessions you have.
Chapter 13 does not remove any creditors..it only sets up a payment plan supervised by the court.
And unfortunately having a pending suit against you will hurt your chances in being granted bankruptcy.
You can call them and tell them you are filing but they are well within their rights to continue the suit...and you could ask a judge for a continuance but it would not be granted to file for bankruptcy...as bankruptcy will take many months to proceed.
2007-04-13 15:27:54 · answer #3 · answered by Dr. Luv 5 · 0⤊ 0⤋
if they aren't your debts, you shouldn;t be getting sued and you shouldn;t be filing bankruptcy. if your parents are unemployed, there isn't anything for a creditor to garnish except tax refunds. let them sue and take the tax refunds if need be.
if you are filing bankruptcy personally, you can't stop a civil action against your parents even if you have been paying their bills. many small claim suits are not dischargable in bankruptcy even if you file before the court date. certain things, like a foreclosure, can be delayed by filing a bankruptcy but even then there are limits.
your best bet is to contact an attorney who specializes in bankruptcy law and also in legal issues involving seniors.
2007-04-15 01:43:24 · answer #4 · answered by northcountry57 3 · 0⤊ 0⤋
Contacting them at this point would do little. You figure 1 week from the court date, they have already invested the time and legal cost to prepare and file their case. They also only have your word to go on.
As for declaring bankruptcy, there is nothing quick about. It's a legal process that you can apply for. It's also not a free pass to skip paying debt. All your assests, bank accounts, stocks, property, get frozen and defaulted to pay off any outstanding debt. At best you might be able to keep your 401k/IRA retirment account.
2007-04-13 18:08:16 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You can file for bankruptcy but you have to go to debt counseling first don't you?
Anyway, you still have to file a notice of the bankruptcy in the small claims case.
You should hire a lawyer and get this and all the other things plaguing you taken care of. Sounds like you have too many debts.
2007-04-13 15:23:53 · answer #6 · answered by krollohare2 7 · 0⤊ 0⤋
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2016-10-22 02:56:19 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Do you really want to mess up your credit rating just for a small claim??? It doesn't make much sense.
2007-04-13 15:23:49 · answer #8 · answered by johN p. aka-Hey you. 7 · 0⤊ 0⤋
yes you can you dead beat
2007-04-13 15:36:46 · answer #9 · answered by Benchwarmer 3 · 0⤊ 1⤋