I'm in trouble.

quote:
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Originally posted by LBrown59
*But they darn sure can see that somebody else gets it !
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*What does that mean? csudman

I was thinking the same thing, but LB thinks he has to be the last post so I thought maybe it would just be ignored.Hedwig
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Heady when you grasp the meaning of (But they darn sure can see that somebody else gets it ! ) Would you please explain it to csudman?LOL

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Have you validated (make them prove that it's yours and show how they got the amount)? Since you've talked to an attorney, I assume they can sue you for the deficiency balance in NC, but make sure.

I think the reason he said your house is in danger is that they can file a lien against it. I don't know if they can force you to sell it or not. The mortgage company would get the first proceeds, they could get anything that is left.

Ask the attorney what he means by that, or talk to a different attorney.

 

Csudman-
There are two things the attys can do to you;1: file a judgment for the deficiency balance and 2. garnish your wages. If they get a judgment the next step would most likely be a garnishment.

Here are your two choices: 1. try to reach some agreement with the atty. He will probably be very intimidating. He will probably demand more than you can pay....but at least give it a shot. 2. Do the same with your credit card debt. Try and negotiate a payment plan and see what happens. If both of them demand big upfront payments then get up from the table and leave.

If you're only making $380/wk net-net (after deductions) then your income is approximately $1,647 a month. Make an accounting of how much you need to live. House payments, utilities, food etc.. If you don't have enough money to make payments to your creditors then I would suggest filing a bk 13. There is no difference on the effect of a bk 13 and a judgment...they both stay on your credit reports for 7 years. But no garnishments if you do a bk 13 and no more interest accruing on your CC debt. No calls from collection agencies.

A bk 13 will require you to make 36 monthly payments to the bk court. The payment will be based on the amount of money you have left each month after paying your necessary living expenses. Consequently you will probably pay pennies on the dollar for these debts. The effect on your credit reports will be the same either way...7 years of negative tradelines. But your house and any other assets you own will be safe.

Now some people will say bk 13 is a pain in the a** just bk 7 them. But a bk 7 will stay on your reports for ten years. Some people have had luck in getting a 7 removed from their reports early but most haven't.

You have to be very disciplined to do a bk 13. This means you HAVE to make timely pmts each month just like your house payments. If you don't make the payments then they can dismiss the bk 13 which will stay on your credit for 10 years. Only 35% of the people who file a bk 13 complete their plans. If you find that you cannot make your plan you can convert it to a bk 7...then you will add years more of negative credit reporting.

Your debt is comparatively small. A bk 13 will give you affordable payments and then a complete discharge after 3 years.

In order to determine how much a month you might have to pay in a bk 13 plan go to this site and print out this form:

(you will need to have adobe acrobat reader to do this which you can download free).

http://www.nceb.uscourts.gov/forms/b6j.pdf

Complete it accurately and report your expenses accurately (don't put numbers that are too low for you to live on). After completing it you will have a good idea of what you need to pay to the bk court every month. Multiply that amount by 36. Whatever the total is subtract it from the amount of debt you owe.

Here is an example: if you have $100 a month left over after paying all your expenses then you will be paying $3,600 on a $15,000 debt. If it is $200 then you will pay $7,200 on a $15,000 debt.

The other thing I would do is to go to the courthouse with the summons and tell the clerk you need a "continuance" as you cannot be there on the date which is on the summons. Ask for a 4 week continuance...make up any excuse you can think of for the continuance. You have to be out of town for a month to care for your grandmother yada,yada. Whatever works for you. This will buy you time in which to try and negotiate the deficiency judgment. It would also buy you time if you decide to bk 13 BEFORE they reduce the 10Gs to a judment. Don't spend a week negotiating with the atty...one call is all that is necessary for you to get the info you'll need. The CC debt is less important because they do not have a summons hanging over your head.

If the lawyer you talk to will not budge on a livable payment plan then get a bk atty as quick as you can and file a bk 13. DO NOT threaten them that you will bk the debt if they don't budge. This will just make them more aggressive.

This is a very workable plan that gives you a couple of more options than just doing a bk without doing your homework first.

clc

 

if you own a house, depends if you have any equity. if you have more equity than the debt, they will put a lien on your property. they can't make you sell but with the lien they get in line with other creditors (real estate taxes, bank/mortgage co. who gave you mortgage, the rest in order when they recorded their liens), when you sell house, the lien holders will be satisfied first before you get any money.

 

As someone already mentioned, his wages can't be garnished in NC for this.

 

Ok so his wages can't get garnished in NC. Of course there is no law in NC that would prevent the judgment creditor from putting a lien on not only his house but all his personal property; tangible and intangible...like banking accounts. On top of that the court will order him to disclose to the judgment creditor where all these assets can be found. So then he has to hustle his buns to close his bank accounts...and try to open new accounts...but with a judgment on his credit report that is difficult. So he puts his paycheck in a sock under his pillow and pays his bills with Money Orders. Of course all the while the lien is accruing interest at about 6% right now in NC. So even if they don't get his bank accounts they will get the equity in his home when he sells it which will make it difficult to buy another home as he will have no $$$s for a down payment.

The MOST IMPORTANTthing to do right now is to go to the courthouse, ask the clerk of the courts for the name of the judge who will hear the case. Then write a letter to the judge and request a continuance. The judge will continue it to a future date. This will buy him some time to exercise the other options I suggested.

clc