Chapter 13 question and having a judgement filed .

Edwards Finance > Loans

Q. Here's the story: A few months ago, I had met with an attorney to discuss filing for Chapter 13 and it was determined that I was a definite candidate. I decided to put it on hold because I was currently paying 12% interest on my second mortgage and I ws going to attempt to get a lower rate - this was when the interest rates were dropping rapidly. While I was waiting to hear back from the bank, one of my credit card companies called me and said that they would lower my monthly payment for a full year by lowering my interest rate from 16% to 6%. This would allow me some breathing room and they mentioned that other credit card companies would probably do the same. I decided that if I could get my other credit card companies to lower my payments then I would hold off on filing Chapter 13. I figured that I would be able to catch up on my own. Well, things were looking good because most of the comapanies agreed to lower my payments - all except for one credit card company which absolutely refused. I tried to stick it out with them and said that I could not afford the current minimum payment and if they lowered the interest I would be able to manage. It turns out that they sold my account to a bill collector and the bill collector is now demanding the payment in full - about $23,000. I obviously don't have any money to pay in full - I tried to get them to accept a monthly payment and they refused and told me that they would sue me and that they would be sending me a summons in the mail. I know that I need to speak with an attorney but I would appreciate any advice. Here's the question: Can I still file a Chapter 13 or am I too late?

A. Too late for what? You can still file a Chapter 13 (or a Chapter 7, if you qualify). Tell the collector to stop contacting you pursuant to Section 805 of the Fair Debt Collections Practices Act and that any further communication from them will be referred to the Federal Trade Commission for enforcement. If the collector then figures out how to actually, legally get a summons to you, then you can file a 13. The only restrictions on filing chapter 13, generally, are having more than $1 million or so in debt, you have to be an individual or small business, and there cannot be prior bankruptcy court orders restricting your use of Chapter 13. You may certainly file Chapter 13 even after someone has threatened to sue, after someone has sued, after someone has gotten a judgment against you, after someone has started garnishing your wages...

Ask Edwards a Finance Question

Other Questions:

Any Teachers in Here From Los Angeles Unified School District .

I am a student from Los Angeles, I know you all heard that LAUSD teachers are going on strike February 27, 2001. They have a good reason which is not enough pay or something but I think they ae being kind of selfish. The more time they are ...

You'd think In Forma Pauperis is for prisoners only by reading 28USC Sec. 1915 Proceedings in forma pauperis ( http://www4.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001915-... ), but there's both an "In Forma Pauperis - General" and ...

How would a person go about repairing their credit rating after bankruptcy? A friend of mine went bankrupt in Nov 2003, and was discharged June 2004. S/He wants to know what steps to take to repair his/her rating. S/He's not interested in...

Under the chapter 13 provisions, does the court have the right to claim his inheritance? And, If he were to deposit his inheritance and not touch it without notifying the court, would he be in violation of any law and subject to arrest/fine...

If one declares personal bankruptcy, do you have to give up everything you have (i.e. house still paying mortgage on, car, furniture, etc...), and wind up on the street? 2 people I know filed for bankruptcy (One was for a business, one was ...

Edwards Finance Menu

Ask a Question
About Us / Me
Contact Me
Privacy Policy

Sitemap

My Favorite Sites

PFBlog
Google Finance
Yahoo Finance
Motley Fool
Nveille's Financial Blog
AllFinanceMatters
Free Money Finance
2MillionBlog
The Terror Finance blog

Q&A Subjects