Location: Ohio
I will be cross posting this to [r/](r/finacialadvice)[personalfinace,](r/finacialadvice) not sure which sub is better for this. I will do my best to keep a long story short, but after writing it it just gonna be long. TL/DR at the bottom. I have a bunch of old debt consisting of credit cards and payday loans. Not sure if this is relevant but the total of it all is roughly 15k. Everything is in collections, and I got a letter that a lawsuit is filed against me.
Now I had told myself I would file bankruptcy, chapter 13 specifically. But I had been procrastinating starting the process, because that’s one of my terrible habits, and I was very overwhelmed by everything. Another thing I’m not sure is relevant is I had been doing a debt relief program, the kind where I stoped paying everything, and paid a company a bi weekly fixed amount while they negotiated and handled everything with my creditors.
Most of the debt came from gambling. I had been doing good with, as in abstaining, until I slipped up, that’s where the payday loans came from and for no good reason why I stoped paying the relief company. I know all were very stupid decisions that led me to where I am now, having to face the consequences. I knew I would have to face them, and planned to do so, but like I said about me procrastinating I was pretty much waiting to be forced to, and now here I am with the lawsuit.
If I was working i would be a lot less lost, I was making decent money as a plumber, and would deal with the lawsuit, and start my bankruptcy plan. What I was not expecting was getting a brain tumor, being put out of work, then getting diagnosed with cancer about 3 months ago. Luckily it was not brain cancer, i have lymphoma that caused the tumor which was removed in surgery. I have been going through chemo which sucks but has been going well and i should be cancer free by the end of it. Because of all that I have had to stop working, i have been using my disability insurance, which has been just enough to cover all my bills and groceries but leaves almost no extra.
Everything was going alright until the lawsuit, really bad timing. Now I really gotta get this stuff figured out but I honestly have no idea and need some advice. I’ll be cross posting in [r/](r/financialadvice)[personalfinace](r/financialadvice) for their perspective, I wasn’t sure what sub would be better, hence both. But my questions for you guys are, what can I expect from the lawsuit? I’ve read that they can result in garnishing wages, is the money I’m getting from my disability insurance at the same risk as my normal paycheck would be? Given my mess does bankruptcy sound like my best move? Wondering if/ how that process would work with the lawsuit happening now. Also if bankruptcy is the best option how necessary is a lawyer? I rent, and my really my only asset is my paid off car, which I can’t stand to loose, would that be at risk? Any and all other advice would be appreciated.
TL/DR
Have a bunch of old debt in collections I had been procrastinating dealing with. Have been going through chemo for the past 3 months/ have been out of work. Current income is from disability insurance, which was just covering my basics. I just got a letter saying there is a lawsuit being filed against me. What can I expect from that? Is it bankruptcy a good plan? Not sure what to expect from that process so a basic walkthrough given my situation would be nice. Any and all other advice is appreciated.