informal bankruptcy just not possible?

I have been on this board b4 soliciting advice about cc debt and options. In a nutshell, I have over $75,000 in cc debt - all charged off - stopped paying 1 year to 1.5 years ago. I've gone back and forth between filing chpt. 7 and informal bankruptcy. My husband and I were unemployed for over a year. He's been working now for the past six months, but I am still unemployed (was caring for elderly mother for 6 months). All debt is in my name only.

I had settled on a chpt. 7 and was trying to save funds. One contributing factor was that Citibank has sued me (as OC). I did not respond (stupid I know), as I had Chpt. 7 planned. I did DV them (the attorney who is handling suit and has acted as a collector) using Texas Finance Code & a technique I've learned on another board, which has worked for some. They didn't respond in time, and I thought the matter was stalled, but was just notified of a hearing end of the month for default judgement. I now plan to file a late answer (got some time and worth a try), but have no real way of avoiding a judgment from an OC.

I'd actually settled on doing an informal bankruptcy. Most of the debt has been sold, and DV's have gotten them to stop calling (most of them, and I am tracking violations on others). Some have offered very good settlements (AMEXP who shifts the debt around to various agencies but never appears to sell - a problem and could also be another suit), but I don't have any funds to take them up on it, plus don;t know if settling's going to do my credit any better than not paying.

I hate to file a 7, especially almost 2 years into this, but this possible judgment, the inability to settle with them to block it, possibilities of more suits by OCs (the JDB suits don't worry me as much), more than two years away from sol, and the fatigue and stress are making me think "7" again. I also have a short period of time left to do a 7 due to my husband's income. It's a decent income, but doesn't even cover everything.

Maybe it's glaringly evident that I really only have one option, I was just really hoping to rough it out over the next two years, and be free and clear of this in a total of 7.

BTW, a judgment in TX last 10 years and can be renewed indefinitely. But, the only thing they can go after is a bank acct., which I've kept my name off of. I just hate to think of a judgment following me around - and possibly more. Any advice is appreciated.

 

Thanks for replying- I must say that I am definitely not as confused or helpless as it appears I've sounded. I've read tomes of information, including looking at your site. My handicap has been being completely involved with taking care of an elderly parent after a bad fall; nursing them, and moving them to a completely different state. It's been a huge time consuming task.

Let me see if I can provide replies to your statements.

And what might that technique be? A4V? Notary protest? Honor-Dishonor? Redemption method? 1099-OID? What?
- It's using the Texas Finance Code It's a 17 page thread on another board so explaining it quickly here is not possible + I'd rather not just outline it. It sets out a threat of a suit if they don't validate and stop collection efforts within 30 days. Two people who are obviously attorneys in TX pointed out the very consumer friendly TX laws and method and have actually received settlements (when specifically asking for damages) using this. But, it involves becoming very familiar with TX laws and not being afraid to file suit if need be.

They didn't respond in time? What time? What statute sets the time limit you are referrning to? If there is no statute stating within what length of time they must respond then there is no time limit.
- Texas Finance Code (TFC) allows them 30 days from receipt of letter (certified) to either validate or remove from reporting and discontinue collection efforts. I DV'd the collector who clearly identified themselves as attempting to collect the debt.

You plan to file a late answer? Are you aware that you must get the permission of the judge to do that? You will need a valid reason why you did not file in time. What will your reason be? Do you know how to prepare a motion for extension of time and a notice of hearing and a certificate of mailing? You may very well have to get the plaintiff's agreement to an extension of time before the judge will grant it too.
- In consulted 2 attorneys here in Tx and both said to "at least try" to file an answer since they did not automatically enter a default judgment but scheduled an oral hearing for the end of the month. I noted that the answer was out of the time frame, but there had not been a ruling on the merits of the case. I was told that there was precedence within various appellate courts finding that the lower court has an obligation to entertain the untimely Answer provided that default has not yet rendered. It is not.

I hope you have started the informal bankruptcy process correctly by sending demand for validation within the 30 day time limit. If you didn't do that then things are going to be a lot more difficult for you. You can still do it but demand for validation usually makes it easier. It won't.
- Yes, I have responded to most of the dunning letters in 30 days. However, TFC allows me to ask for validation - at any time. A collector doing business in TX must abide by TFC. I DV'd everyone, including the attorney suing me on behalf of the creditor. My next step (I have been told) could be to file suit on the lawyer/collector based on their lack of a timely validation and continued collection efforts.

- I recognize my dilemma - I wasted valuable time, during the time I planned to file bankruptcy, so if an informal doesn't work, then it's not anyone else's fault. I didn;t suggest otherwise, only that I may have mucked it up by not deciding more quickly. If I can somehow deal with this lawsuit, then I have properly prepared myself with the other creditors. Lots more I could say about this - I'd really like to use the TFC, given it's strength, as a 1st line of defense and then go to the federal laws. In any case, I will look through your info more and also see if my answer, filed today, buys me any more time.