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 CAN THEY TAKE MY CAR? IF I GO INTO BANKRUPTCY CAN THEY TAKE MY CAR WHICH IS PAID
FOR IN FULL?
 I would need more information from you to tell you exactly what to expect. There is a motor vehicle exemption of $2,750. That amount applies toward the value of your car. If it's worth more than that amount, and you don't own a house then you can
apply the balance of your "wildcard" exemption to the car up to $18,500. If it's worth more than that, there is a chance the trustee would sell it, but
you'd get the first $18,500 from the sale. Thanks for the question.
I'm making Child support payments,
but I still owe plenty in back support, does chapter 7 help?
Child support is one of the few things that
can not be discharged in chapter 7. Thanks for the question.
I have some state and federal tax charges. Can
those be taken care of with Chapter 7? Can Creditors take your Workman’s comp settlement ?, I have been on Workman’s comp for 9 years. I have so many bills, I am way over my head. Now I am getting
Perm disability, and waiting to see what I will ge for a settlement. I have
been wanting to file a chapter 7, but I am afraid the creditors will take
my money. I am also on SSA which I am getting a total of 600.00 a month.
What can I do and what is the amount you would take to at least start my
Chapter 7? The bills I owe have accumulated through the years. I thought
I was going back to work. After surgeries there telling me I can't. Now I
can not work at all. Can they take my settlement?
Unfortunately, taxes are often not dischargeable in bankruptcy. Every
situation is different, there aren't any quick answers when it comes to taxes. It is probably not possible for creditors to levy your worker's comp. money
directly. However, there are other ways they can enforce the judgment, like a bank levy. This device is rarely used, but if the creditor has a judgment against you,
they can ask the Sheriff to clear out your bank account and that money will
be used to offset the judgment. If you know there are judgments out there, it's not a good idea to leave any
large sum of money in a bank account. Thanks for the question.
Hi, My husband and I make good money and have two young children. As of right
now, my husband alone is in a $30k debt in credit card bills. I owe approximately
$6k. If you add our car, thats an additional $15k that we owe. I'm currently
going to school and this does not include my upcoming student loans. We don't
own our home, and we are not behind in any of our bills. We manage (somehow)
to make minimum payments on everything. We don't have perfect credit, but
we also don't have poor credit. I know it will take decades for us to pay
everything off, is bankruptcy the right solution for us in order to get a
fresh start?
It sounds like you'd benefit greatly from a chapter 13. Chapter 13 stops the
foreclosure sale, and gives you up to five years to catch up on the arrearages.
It gets creditors off your back, and gives you some time to decide what to
do. You can also sell your house out of the chapter 13 voluntarily rather than
having it sold for you by the bank. I'd be happy to discuss it in more detail
with you next week. Call me for a free consultation., If the goal is to have
no debt and serviceable credit as soon as possible, it certainly sounds like
bankruptcy would be the quickest way to get there. Making only minimum payments
each month is a dead end because you'll never get out of debt that way, you're
just putting off the inevitable. You could find yourself in the exact same
position, with all the same debt two years from now. Bankruptcy does damage
your credit, but more importantly it gives you a chance to start over with
no debt.
Once you're debt free, you can concentrate on rebuilding your credit
and saving money for a down payment on a house. In two years, you can have
your credit rebuilt, and enough money saved to get into a house. Bankruptcy
is the quickest way to get there for most people because a lender won't consider
you for a mortgage until most unsecured debt is paid off.
Hi, just a quick question...my brother got into financial
problems with a credit card and he went to legal aid who filled out the papers
for him to file for bankruptcy, my brother stated he wanted 3 things...(1)TO
DO NOTHING THAT WOULD GET HIM INTO TROUBLE (2)TO NOT HAVE HIS HOUSE INVOLVED
IN ANY WAY (3)TO HAVE SMALL PAYMENTS WHEN IT WAS ALL DONE. They said "not a problem" filled out what they needed to, my brother took the papers to the right place,
filed them and then waited for the meeting. At the meeting he was told he
is not allowed to say anything and they proceeded to have the meeting during
which they said "yes you can have the chapter 7 and the debtor will take the equity in the house." His house is worth$310,000.00 (upon which he only owes $45,000.00) and the credit
card bill is only $10,200.00. He said "your taking my house?" and they said "no...just the equity" so he said "I don’t want to file for bankruptcy anymore" and they said "oh well, there is no backing out now, you already filed!" NOW my question is this...Isn’t there some way for this poor guy to get out of this? Surely there is some way
to stop a bankruptcy once it is started? He has another meeting on the 26th
for which they 'suggested he get a lawyer.
Unfortunately it is not possible to simply voluntarily dismiss a chapter
7 without the trustee getting the opportunity to object. At this point, since the trustee is now aware of the equity in the house, there
is very little chance of getting out of the bankruptcy. I know you don't need me to tell you, but it is so dangerous for people to file
bankruptcy without a lawyer. Bankruptcy is a legal process, it is not simply filling out forms. Programs like legal aid or document preparation programs or paralegals are not
attorneys and can not give legal advice. They make it sound like they've done it before and it's easy, but it's the consumer
taking the risk. The best option now, is probably to convert the case to chapter 13 sell the
house through that process. It gives you a chance to remain in control, rather than have the trustee just
sell it for you. Thanks
How much does it cost to file for bankruptcy? I have been
off work off and on for the last two years due illness. I signed on with
a credit repair company in 2002, who ended up ripping me off and at the end
one year of payments I owed my creditors more than when I started. I can't pay and I can't pick up the phone anymore. No one will take a portion
of the payment, all my creditors want the full amount per month and with
the late pay and overage fees I will never pay these bills. I'm on disability! I live on half my salary right now! I want to pay, I just don't have it! HOW MUCH DOES IT COST TO FILE AND COMPLETE
THE PROCESS?
The cost for filing bankruptcy varies with the complexity of the case. However,
most chapter 7 cases can be handled for a flat fee starting at $2,500 plus
a filing a fee (charged by the court) of $299 for a total of $2,999.00. If you like, you can make payments on that amount, but I can't file the case
in court until the full $2,999 is paid. During the time it takes you to pay it off you can refer creditor phone calls
to me. Telling them you've retained a bankruptcy attorney and give them a special number
I've set up for creditors. Please call me and I'd be happy to discuss the details of getting started. Thanks.
My bankruptcy was discharged in 1996. At the time I was
told the negative impact on my credit report would be 7 years. Apparently
the reporting guidelines changed and now its 10 years. Can you tell me if
the 10 year change was only for filings after the change...i.e. is there
a grandfather clause in the reporting change? Thanks.
The credit reporting agencies reporting period varies. I
believe public record filings, like bankruptcy or lawsuit judgments, stay on
for 10 years. However, every consumer should monitor their credit closely. I would suggest a credit repair company for anyone coming out of bankruptcy because
there are so many opportunities for mistakes after a bankruptcy. One company I believe does a good job at a reasonable price is www.creditattorney.com. Thanks for your question.
Can you avoid having your vehicle repossessed by filing
bankruptcy? And can you be forgiven of your debt of your vehicle to be able
to keep it after filing bankruptcy and what is the quickest amount of time
taken to file bankruptcy?
Bankruptcy will slow down the repossession process, but not prevent it
from happening. Since the vehicle in questions is secured collateral, the creditor always has
a right to come get it because they are the legal owner. In bankruptcy, you'll have the choice to surrender the vehicle, and owe nothing
more, or continue to make payments and stay current and keep the vehicle. Hope that answers your question. I'm always available for a free telephone consultation if you have follow-up
questions. Thanks.
I have a creditor that was not included in my chapter
7 bk from 1999. I was unable to make payments to him as of last year and
they have now sold my account to another firm for collection. I offered to
make payments last year but the company wanted at least $5000 lump sum or
they would not accept payments. I did not have that amount to give them.
And I still don't. For the most part, I have made payments to my other creditors
in a timely manner and it shows on my credit report as such. I have now received
summons that was literally left at my front porch without an envelope or
anything to protect the nature of my privacy while I was out of state. It
is to be heard at our local superior court and is listed as a "limited liablility case" for the credit card company I had tried to make payment arrangements with. I
still own a residence out of state, two cars over ten years old, but no stock,
bonds, retirements or savings. I am now on workers compensation with a very
limited income and am not able to pay at this time. When I retu to work I
could start the payment offer I made before and repay the debt but my attempts
as I said were thwarted last year. I did not owe any money to this creditor
when I filed the bk but I transferred monies from my mom's credit account
to mine because it was money I owed to her. I have not bought any large ticket
items since before my bk.
Is there anything I can do to try and negotiate further
since this is now going to court and my financial resources are even more
restricted due to my work injury?
It sounds like you had the account open prior to the filing of the 1999
bankruptcy. If that's the case, you may have an argument to make. I would say
your best bet is to go to court on the day listed on the summons with a copy
of the cover sheet of your 1999 bankrutpcy. There is some case law to support
the position that even if an account is not listed on the petition, it is still
discharged becasue you had the opportunity to discharge it. When you get in
front of the judge just give him the facts and let him make the determination.
Tell him you filed bankruptcy in 1999 and this account was open prior to that
filing. Make sure to bring a copy of the 1999 bankruptcy cover sheet to give
to the judge. Thanks for the question.
I moved here 7 yrs ago from another state. Recently I
was contacted by a collection agency in another state saying that I had 14k
in debt owed. I asked them what this was in regards to and I was told to "just pay my F****** debt." I asked them to please send me what it was they were trying to collect for and
I never recieved anything. ( They did read back to me my current mailing
address, and I am not hard to find ) Now I just recieved a notice that they
are ganishing my wages via a court order, ummmm I was never informed of this
and quite frankly I barely make ends meet as it is being a single parent.
Can filing BK get rid of this?? I dont have any other debt other this. I
have one credit card that I use sparingly and pay off every month.
If the judgment is for a credit card, medical bill, or other unsecured,
non-priority debt then it is dischargeable in bankruptcy. Dischargeable means
it is no longer enforceable against you. Please call me for a free telephone
consultation, I'd be happy to help with this situation.
I've built up around $35K in credit card debt as a result
of some entrepreneurial ventures over the last 4 years. in addition I have
student loan payments coming due soon which had been in deferment. By robbing
Peter to pay Paul I've kept all but one of my credit cards from being sent
to collection - about $6600. I have just accepted a new job that I will start
soon but when I look at the combination of my living expenses (truly not
extravagant), student debt, and credit card debt I am still up to my eyeballs
with no real end in sight. Three questions.
1. Is Chap. 7 or 13 my best option given the amount of unsecured debt and do
I have a choice as to which one or is that simply based on income?
2. My wife and I have been married for 2 years but most
of the debt was racked up before we were married. Would it be better and is
it an option for me to file separately?
3. Does it make more sense to start the process before or after I've started
my new job?
It sounds like you're in good shape to do a chapter 7, which is the quickest,
easiest and least expensive way to go. Chapter 7 would allow you to discharge the credit card debt with no repayment
plan. The money you would have spent on credit card payments over the next few years
can go into savings for a down payment on a house. After about two years, you can have your credit rebuilt to the point of qualifying
for a good mortgage interest rate, and a down payment to close the deal. Without
the bankruptcy, you'd have to pay off the $35K in full, and then start saving
for the down payment. This would set you back.. The objective for everyone should be getting into a house and building equity
as soon as possible; bankruptcy provides the clearest path. The student loans are not dischargeable in bankruptcy, however mortgage lenders
don't count student loans against you like credit cards. You're always welcome to call me for a free telephone consultation at 888-728-0044.
I dont have any credit cards or owe any car loans. The
only debt I have is court fines and recently a judgment against me for 2500.00.
I have no job and live with my grandmother. I cannot pay any of this, I have
been making small payments to the other fines working with friends but in
June I cut my hand off with a table saw and its only now starting to heal.
I can't even move what fingers I have left. Can someone give me some advice
here?
Generally, court fines are not dischargeable in bankruptcy. This
means even if you filed bankruptcy the court could still come after you for
the money after the case was finished. One option you do have is a chapter 13. This is a repayment plan. You'd end up paying the court fines in full, but you'd get five years to do
it. However, chapter 13 requires regular income. You'll have to wait until you have predictable monthly income to get into a
chapter 13. I wish I had a better solution for you, it's a tough situation.
How long does
it take to file chapter 7?
For a chapter 7, from the
time the case is filed, it takes about 4 months to complete. However most of
that time is just waiting for the court to process the discharge paperwork.
Your responsibilities (as the debtor) are usually over in about one month.
I received a letter from my finance company for my car.
They asked if I plan to reinstate and resume making post-petition payments
as agreed in my contract. If so, I need to pay the past due amount and all
subsequent payments. If not, they want to file a Motion for Relief from Stay.
Can you explain to me what all this means?
Anytime you fall behind on car payments, the creditor can repossess the
car. Bankruptcy doesn't really change anything because the property is "secured." The creditor has the same rights in bankruptcy as they had before the case was
filed, the only difference is they have to ask the Bankruptcy Court for permission
to repo the car once you file a Bankruptcy case. A Relief from Stay motion
is just that. The creditor asking the court for permission to go recover their
secured collateral. If you are current on the car payments in Bankruptcy, however,
the creditor can not repossess the car because the court will not allow them
Relief from Stay.
What type of questions are asked at this meeting by the
trustee and creditors?
The trustee will ask you the following questions: What's your name? ,
What's your address? Is this your signature on the petition? Did you read it
when you signed it? Did you understand it? Did you list all your assets? Did
you list all your debts? Do you want to make any changes? Creditors may also
ask questions, however it is rare for a creditor to show up.
If a law firm is granted confirmation of an arbitration
award through the court, that was originally awarded to them through an arbitration
forum, can they then take that judgment confirmation and get a legal hold
on bank accounts? Can they just go in to a bank and withdraw funds from a persons account without
notice?
The arbitration award allows the creditor to shorten the "default
judgment" process. The arbitration award by itself does not have legal effect, but it does allow
the creditor who holds it to very quickly turn it into a default judgment if
you don't immediately respond once they file it with the court. Once the default judgment is entered, then the creditor can begin enforcement,
which can include wage garnishment and bank levy. The creditor still has to
give you notice and an opportunity to respond before the court will enter the
default. You can file bankruptcy at any point in the process to make the arbitration
award/judgment unenforceable against you (so long as it is for a qualifying
debt).
I have 16 payments left on my vehicle. I
recently fell 60 days past due. I am 28 have always made a decent living 50-60k year sometimes as much as 85k. Over the last 3 years I have had a hard time keeping steady work. I work in
the collections industry. (Ironic) I have about 20k in Irs and 5k in California
state tax debt. A large portion more than 3yrs old. I have heard and read that there a might be a small possibility that I can be
relieved of this through chapter 7. I have no assets other than the aforementioned vehicle and my personal belongs
i.e. clothes, television, and bedding. Outside of the tax debt I have maybe 2k in unsecured debt, and my vehicle which
I am upside down on but, relatively close to a pay off. Is there anyway that the finance company will reaffirm the debt and defer the
delinquent payments to the end of the loan? and is there any relief from the tax monkey on my back? I tried an offer and
compromise sometime ago, however they denied the off based on an undetermined
income.
You've raised a number of issues. I'll take them one by one: Two months
behind on car payments could become a problem, generally speaking the finance
company will probably go to the court for relief from stay if you fall three
or more payments behind. If you are only one payment behind they probably will
do nothing, but two payments is the gray area. Bankruptcy doesn't really change
anything though, they could come repo the car now, bankruptcy just makes it
a little more difficult for them to do it. 2. Taxes are generally not dischargeable.
However there are narrow exceptions, one of which is when taxes are 3 or more
years old and you filed a return over 3 years ago. Even so, it's not always
a sure thing. The IRS and FTB make the rules, enforce the rules, and then tell
you if you've broken the rules. It can be a little tricky, but it sounds like
you've got a pretty good shot at discharging the taxes (or at least a good
portion of them). 3. General unsecured debt is dischargeable in most circumstances.
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