Is bankruptcy my best option after receiving a court summons? 12 Answers as of June 03, 2011

I was recently served a summons to court from a local collection agency in AR. My husband was killed in our home so I foreclosed because I wasn't emotionally able to live there. I am on disability for chronic pain, arthritis, and anxiety issues (PTSD) and also receive a retirement pension due to disability. I am being sued for the 20% portion of our 80/20 loan. The company that carried the 80% already foreclosed and actually made $10,000. I was contacted several months ago by the collection agency that is suing me and talked to a man who said he was going to discuss my situation with citibank and see if they wanted to pursue it. He had me fax my foreclosure papers to him. I got a letter of dismissal a few weeks later. I thought it was over. When I was called by a different agent recently he said it was dismissed because they couldn't serve me papers, even though I was in the same rental house for over a year and they sent me letters there. The man I talked to that was going to talk to Citibank to get it resolved no longer works there. Is my only recourse bankruptcy?

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Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
Before you decide that Bankruptcy is your only option you should speak with an attorney about all of your debts, your income and your assets. However, if there is a lawsuit, a Judgment and then attempts to collect, Bankruptcy may be your best option.
Answer Applies to: New Hampshire
Replied: 6/3/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
Bankruptcy may be your best option when you are being sued for a deficiency on a junior deed of trust. Once the collection agency has filed suit it is doubtful they will simply let it go. They might offer a settlement but based on the information you have provided it sounds like you are just getting by. You should consult with an attorney who is experienced in bankruptcy law.
Answer Applies to: California
Replied: 6/2/2011
The Northwest Debt Relief Law Firm
The Northwest Debt Relief Law Firm | Thomas A McAvity
Bankruptcy certainly is an option after being served with a summons in that it will terminate the underlying lawsuit. However, it is impossible to say what your best option is without meaningful consultation. It is entirely possible that you are judgement proof and if that is the case bankruptcy may be unnecessary.
Answer Applies to: Oregon
Replied: 6/2/2011
Ursula G. Barrios Law
Ursula G. Barrios Law | Guillermo Machado
You can eliminate that debt and lawsuit by filing BK. This is generally your best option because it avoid having to either pay thousands to have someone defend you in court (and the great chances that you will lose in the end) or defending on this yourself (with same results).
Answer Applies to: California
Replied: 6/2/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
If you owe them money and they have a judgment against you, you can deal with it in a bankruptcy case, or try to work out payment arrangements with them. Depending on what assets you have, you may also just ignore them and let them try to collect from you, but you should consult with an attorney in your area before utilizing that tactic.
Answer Applies to: California
Replied: 6/1/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    You certainly should see an attorney to evaluate that option. There is no way to answer without seeing all your financial numbers.
    Answer Applies to: Georgia
    Replied: 6/1/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    There are many other factors which affect any determination whether to file a bankruptcy is your best recourse. You should discuss your entire situation with an attorney to be properly advised with all of the facts at hand.
    Answer Applies to: California
    Replied: 6/1/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    You may be able to go to court and ask them to prove they own the loan and see if you can beat them that way. But why do you ask if bankruptcy is your only recourse? It's probably your easiest recourse. Isn't easy what you need now?
    Answer Applies to: Virginia
    Replied: 6/1/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    It sounds like bankruptcy would be a very good option for you as you would be able to discharge all of the debt associated with the foreclosure among other things. You would most likely be a good candidate for chapter 7 bankruptcy.
    Answer Applies to: Washington
    Replied: 6/1/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    The sign on my door reads, "bankruptcy - it is not a bad word." Sounds like the bankruptcy code was written for you. Take advantage of it.
    Answer Applies to: California
    Replied: 6/1/2011
    Daniel Hoarfrost, Attorney at Law
    Daniel Hoarfrost, Attorney at Law | Daniel Hoarfrost
    Since you are on disability and pension, there really isn't much your creditors can do to collect, so a bankruptcy isn't absolutely necessary.On the other hand, if you want peace of mind and can raise $1,260, I can file a bankruptcy for you which would prevent any of your creditors from harassing you again.
    Answer Applies to: Oregon
    Replied: 6/1/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Sorry to hear of your loss. As if you haven't had to deal with enough stress, now this. In any event, without knowing what state you are in, its hard to answer the question definitively. In California, for example, there are anti-deficiency statutes which prevent the lender from coming after you for a deficiency in certain cases. You would want to check the deficiency statutes with regard to real estate in your particular state. If you are not protected by anti-deficiency statutes, then yes, bankruptcy would seem to be the only remedy. Given that they have already sued you, and that it sounds like they might continue to do so (they'll file again and make sure they serve you this time), it sounds like you are not protected by such legislation, and now the bankruptcy will be necessary. Keep in mind also, if you have other debt besides the mortgages, such as credit cards, med bills, etc., then it might be desirable to file the bankruptcy anyway.
    Answer Applies to: California
    Replied: 6/1/2011
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