Legal Question in Bankruptcy in New York

Can't file BK due to money coming soon, can't pay debts, what to do?

My wife and I are about 50K in debt and were in the process of getting ready to file bankruptcy. These are all debts that have been charged off and haven't had a payment in over a year, plus a car repo. My mother passed away a few weeks ago and there will be more than enough money to pay off our debts in full.

It could be 6-12 months before the probate process is over, so we are not getting that money overnight. But, we cannot file BK now, because we were told that would be fraud since we know we will have the money to pay our creditors down the road.

In the interim, we do not want any judgments against us where our accounts are frozen or our wages garnished.

What should we do?


Asked on 4/29/09, 10:54 am

2 Answers from Attorneys
Antoinette Wooten The Wooten Legal Consulting, PC

Re: Can't file BK due to money coming soon, can't pay debts, what to do?

Have you informed the creditors of the inheritance?

Why not contact your creditors and work out a payment plan.

I am sure that they will work with you under the circumstances.

Patricia Martin-Gibbons

Read more
Answered on 4/29/09, 11:06 am
Stephen Starr Starr & Starr, PLLC

Re: Can't file BK due to money coming soon, can't pay debts, what to do?

You don't indicate where your debts are in terms of the collections process (i.e., current, default, in collections, in pending lawsuits, or judgment entered). Creditors typically can�t garnish wages unless they have a judgment.

You will be at a disadvantage dealing with creditors/collectors without an attorney. You should consult with an attorney experienced in debtor-creditor matters in your area (and with debtor-creditor litigation in the local courts where you live). You can consult the Legal Referral Service of the local bar association in the county where you live for a referral.

For further info regarding debtor-creditor and bankruptcy matters please feel free to visit the Frequently Asked Questions on our website at www.starrandstarr.com and on our Blog posting (there is a link to it on our website).

The foregoing is intended as information of interest to readers of this website and is not intended as legal advice for your situation. You should consult with an attorney regarding the particulars of your matter.

Best regards,

Read more
Answered on 4/29/09, 2:03 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in New York