I think you misunderstand something.
What happens when the stipulation gets breached that has you so scared? Why not breach the stip, let them try to collect, and in the meantime, file for bk?
I'm not telling you to do this, I'm just asking you a question to try and figure out the whole situation.
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No ... you are not incurring any new debt - so it's not fraud. But why bother. You're not employed, so they can't garnish your wages. And if you don't (I repeat, DON'T) give them any information about where you bank, you can hold them off, even after they get their Judgment, until you can get your case filed.
In situations like this, it's best to do whatever you can to come up with the fees to get your BK filed.
No one can garnish your wages until you actually have wages to garnish. So relax a little. Do NOT sign the agreement to pay. And don't pay them. Instead, stop paying ALL of your unsecured creditors and save your money for your attorney. Yup... that's how broke people manage to pay their attorney's fees. And that's what you are expected to do. No, this will not "get you in trouble" with your local judge or the Bankruptcy Court.
So, when your creditors call, you should feel free to tell them that you are filing a bankruptcy and you are not paying them, so that you can pay your bankruptcy attorney. Creditors that have any sense will make a note and call you back in a month to see if you have made any progress in filing a bankrupt
This answer is not intended to create an attorney-client relationship and may not be relied upon as legal advice. A careful examination of the facts is necessary before a legal answer may be relied on. You should consult your own attorney before taking or refraining from any legal action.
When you sign a settlement agreement in a credit card case, you are not incurring debt (that happened when you signed the original card agreement),so you can readily include it in your bankruptcy even though you had no intention of performing. The alternatives are to file pro se or to but time in the state case by obtaining a fee waiver and filing an answer.
Thank you for your service to our Country. I hope I can be of some small service to you here.
1. DO NOT FILE BANKRUPTCY NOW. Generally, there is no point in wiping the slate clean now, if you are going to have more financial trouble right away! You can only file Chapter 7 once every EIGHT (8) years, so use that "get out of debt" card VERY CAREFULLY.
2. Default on the lawsuit. If you have no assets and no job, it will be very difficult or impossible for the collection agency to get any money from you even with the judgment. The judgment can be discharged in bankruptcy just as easily as the original debt.
3. DO NOT SIGN the agreement and do NOT PAY ANY unsecured debts. JUST STOP. You need the money to live on, so take care of your basic living expenses first, then save what you can (probably not in a bank account which might be levied). After you find some steady work, THEN hire a reputable bankruptcy lawyer and file a chapter 7 to get a fresh start.
4. If creditors are bugging you on the phone, ask them not to call. If they continue, hang up (that is not rude, they are rude for disobeying your request). You can also mail to them a letter demanding they cease communications with you except in writing (look for that form letter on the internet, there are many versions).
5. None of the above actions will get you in "trouble" with the bankruptcy judge. Even if you sign the agreement, you will not have trouble with the bankruptcy judge.
Best of luck.
Answers to questions are for general purposes only and do not establish an attorney-client relationship. This is not legal advice, simply information. You SHOULD NOT act on this information without consulting an experience bankruptcy attorney in your area and providing ALL relevant information.