Legal Question in Bankruptcy in Texas

Creditor is wanting to sue Should I file Bankruptcy?

I just recently got served by a creditor from a credit card that existed 4 years ago. I have just recently got married and none of my debt from the past has anything to do with my husband now it is all in my name. I want to know what would happen if I do not respond to the suit or show up in court for the amount owed what is the worst that could happen to me (i.e. warrant for my arrest, go aganist my credit, etc.... I am not sure if I should respond to this suit or just file for bankruptcy. If I file for bankruptcy will I have to get my husband involved (I do not want him involved at all). We own a home but it is in his name only not mine and my car is in my name only. That is the only thing that we have and all my debt is from years ago and in my name only. I am not sure what the best route is to take but I do know that I only have a limited amount of time to respond. Kris


Asked on 7/29/02, 12:51 pm

1 Answer from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

Re: Creditor is wanting to sue Should I file Bankruptcy?

Short answer -- From my perspective you would be better off filing.

The option of doing nothing probably is somewhat misleading. "Doing nothing" will mean that you will have a judgment entered against you by default. You will not ever go to jail but eventually the creditor will probably attempt to garnish your bank account. The judgment will stay on your credit report and will look just as bad as a bankruptcy in terms of getting credit. In addition, you likely have a lot of other detbs and are being gouged with interest rates (I guess between 16% to 21%) As a result it will take years and years to repay your debts. This is heavy emotional as well as financial burden. You would be better served by using your time and energy to focus on a savings strategy -- paying YOURSELF each month by contributing to an IRA or a mutual fund.

EVERYONE DESERVES AT LEAST ONCE CHANCE TO START OVER FRESH! Please read my firm's philosophy. Currently, the bankruptcy laws make it easy to file. The Congress and Senate are very close to making changes to these laws which will make it very difficult to file for a complete "discharge" (the term in bankruptcy which means eliminate or wipe-out your debts) In the future it may be possible to discharge only a small portion of your debts. So if you had a judgment against you for example, you might only be able to discharge a portion of this debt.

Your husbands assets and debts would not be at issue if you filed an individual chapter 7 filing. Please call me to discuss the your particular situation in greater detail. ph. (972) 231-5500 or (800) 303-0720

Read more
Answered on 7/29/02, 3:09 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Texas