What should I do so I can file for bankruptcy?

You should start by arranging a consultation with an experienced bankruptcy attorney. Usually, the initial meeting is only a small charge; and it's worth it. There are often things you can do prior to filing that can be beneficial. However, if you are already being sued, you need to move quickly. In Idaho, once you are served with a summons, you only have 20 days to answer - and if you don't, the creditor can get a judgment by default; and then proceed to serve a garnishment notice on your employer shortly afterward.

You need to schedule a consultation.

Many bankruptcy courts post information on how to prepare your own bankruptcy on the court website. It is a lot of work to fill out more than 40 pages of forms. You will also need to take a class called "pre-bankruptcy credit counseling" and if you are at or below the poverty level, many of the providers of this service will let you complete the class & obtain the certificate at no cost. To file the case with the bankruptcy court without any charge will require that you show that you are at or below the poverty level as well. Otherwise, the court will put you on a payment plan over a 3 month period. To complete the bankruptcy, you will need to complete a second class called financial management & file the certificate from that class with the court as well. Again, your income level will determine if you can obtain this requirement without any cost. As to garnishment, once a creditor sues you, they can obtain an order to garnish your pay in as little as 21 days.

I suggest you hire an attorney. Screwing up a bankruptcy can have serious consequences. I would charge $1256, including filing fees, for example, and that is money well spent. Medical bills are unsecured and are often a good reason to file. If your income level is under a certain amount and you can use California's wild card provisions, you are likely to keep all your property, stop all collection activity and discharge the debts forever in about 4 months. As far as a suit, it depends. You get 30 days to respond and if you do, timing then won't be an issue. There are 30 days that need to pass after a default to enforce the judgment. Once you file the case or collections are stayed immediately.

The medical bill collector would have to get a civil judgment against you before they could garnish your wages. The summons you received should tell you how much time you have to respond before they get a default judgment. It is possible to file bankruptcy on your own, but it's not free. You would still have to pay the court's $306 filing fee and pay for the mandatory credit counseling, although you can apply for permission to pay the filing fee in installments. You can get all the information and forms from the Oregon bankruptcy court's website.

They would have to get a judgment to garnish wages. That would take at least 2 months or more.