Is it smart to pay the settlement when currently getting ready to file for bankruptcy?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is it smart to pay the settlement when currently getting ready to file for bankruptcy?
I am gathering the funds and starting the initial processes to hire a bankruptcy lawyer. Today I found I had a pending case on an installment loan but they were willing to settle out of court for less than a third of the cost of the balance due. They told me they want to send out the court papers in 2 days, a Sunday, and I would not have time to hire the bankruptcy attorney. The total amount to settle is only $404. Is it smart to pay the settlement when currently getting ready to file for bankruptcy?
Asked on August 3, 2012 under Bankruptcy Law, Michigan
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
From what you have written, if you want to save $404.00 with respect to the settlement you have written about, I suggest that you wait to pay the $404.00 until after you file for bankruptcy protection. Once you file for bankruptcy protection. Most likely if you get a discharge in your bankruptcy, you will not owe the $404.00.
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
From what you have written, if you want to save $404.00 with respect to the settlement you have written about, I suggest that you wait to pay the $404.00 until after you file for bankruptcy protection. Once you file for bankruptcy protection. Most likely if you get a discharge in your bankruptcy, you will not owe the $404.00.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.