I just got a second pre-legal notice, and I’m really anxious. I’m in debt and made a huge mistake last year, thinking everything would be sorted out (I know, I messed up), but it all backfired. I’ve been ignoring their notices since April, but last month, I decided to call and explain my situation (I know I shouldn’t have). I tried to dispute it, but it didn’t go well. Now that I’ve received a second notice, I’m kicking myself for calling, especially since I’ve read that you shouldn’t.
Does anyone think I can still fight this in court, or should I just set up a payment plan? I’m stuck on what to do next. I’ve also been looking into hiring a lawyer, but I’m worried they might not give me the answers I need. Help!
how much are you in debt of?
I am in debt of$10,193😩
You can file for bankruptcy on your own if your case is straightforward, which allows you to avoid hiring a lawyer and submit your filing to the court in your district.
You’ll need to attend your 341 meeting with the Trustee and answer questions under oath.
I opted to hire an attorney instead of using Upsolve. She charged me $895 in 2020, and while I received a fee waiver for debtor education, I still had to pay the court’s filing fee.
This process eliminated over $150,000 in debt, and even though my credit was in terrible shape, my FICO score increased by over 150 points once my debt was reset to zero. While my score still wasn’t great, it allowed me to rebuild.
Make sure to list all your debts, and if you qualify for Chapter 7, they should all be discharged.
Check the “bankruptcy exemptions” in your state to understand what property and money you can keep.
Filing for bankruptcy is a process, and you can only do it once every eight years. However, if you’re worried about Midland damaging your credit or suing you, it may be worth considering bankruptcy to use the code against them and your other creditors for a fresh start.
Many people find they lose little or no property by the time they file.
I can’t specify what exemptions apply to you since it varies by state.
Debts below $10,000 do not qualify for bankruptcy.
I’ve saw others file with far less and receive a discharge. It is up to you if doing it makes sense.
Depending on your financial situation and the ease of the case, declaring bankruptcy might not even cost you anything.
Would it be appropriate for me to file for bankruptcy in order to pay off my $12,000 debt?
Just curious, but how can you tell if this is a pre-legal notice? Does it make that clear? They would probably need more time than 14 months to file a lawsuit.
Not nearly enough data. What is the debt’s age? To what extent? What kind of debt? Was Midland involved in the “really stupid” thing?
This is a collection notice, but MCM may try to suit at a later date. You should become concerned about garnishment as soon as they serve you. Try negotiating lower payments and let them know you’re on the verge of bankruptcy as well as your financial situation.