[outlawstar766]

I just received notice today that I'm being sued by citifinancial of whom I had two loans through. I haven't made any payments in the last two months, nor to any of my creditors (there are many). Im trying to file chapter 7 bankruptcy and I'm wondering what kind of time table I'm looking at and if the judgement is against me, where will it fall into play with the other debts I'm flushing out in the bankruptcy.

I own a home (that I no longer live in) in the same state (PA) as the loan company and the civil action is taking place. Ive been trying to save the retainer for the attorney to get the paper work started on the bankruptcy, but the same bad luck that got me into this situation in the first place. My court date is a month away. They are suing me for $8000 which is close to what I believe the principle balance on the loans is, but that also happens to be about what I have in equity in my home. Can they go after my equity? Im wondering because the two loans each had a vehicle as collateral but niether as been repossossed. Don't they have to claim the collateral before then can sue me for the defiect balance?

Im stuck in a hard spot and unless I win on a scratch off, I doubt ill get the money to file prior to the court date, and since they haven't reclaimed the collateral, those debts with Citi aren't technically unsecured and wouldn't be affected if I file chapter 7.

Any feed back would be appreciated.

[kanicky73]

Do you have an attorney that is handling the bankruptcy for you? You should really ask him/her these questions as they would better know how to answer them. It is my understanding thought that once you have retained an attorney for a bankruptcy and have informed the creditors of such, they can no longer contact you and need to direct any correspondance to your attorney. Hope that helps.

[ScottGem]

If the loans were secured by cars, then yse, they would have to repo the cars, sell them then go after you for any balance (which there would likely be). While most state prohibit going after a primary residence, if you no longer live in the property, then it may be fair game for them to at least attach a lien to.

[outlawstar766]

The attorney I spoke to told me he needed a 500 to 750 $$ retainer before he can start the paper work. Sadly right now that's still unreachable for me (I haven't even gotten my car roadworthy i.e. legal in this state yet) I have read that filing will stop the collection attempts and freeze the legal action but its just a matter of finding the money and wanting to know what I may expect to see if I don't file before this court date

[outlawstar766]

I don't live in the primary residence because I moved to CT looking to make more money. I decided to stay here and now I'm paying the mortgage and half the rent of this apartment. My mother who gave me the down payment on the house is the only one now living there.

I thought as well that they would have to repo first, but now this court paper states I have to be there in person to give my defense and I doubt I can make it there, as I work 7 days a week ( I don't remember my last day off) and the cost of the trip would be almost as much as retaining that attorney.

[ScottGem]

If you don't show up they get a default judgement. Its possible they have to get the judgement before they can repo.