Garnishment while IN BK?

[Lesa13]

I have a hearing Tues for post-petition utility bills I am being sued for.

Told creditors atty I was in Ch 13. my BK atty also wrote them advising them to be careful in how they pursue this debt (they are trying to go around BK court-get judgment and garnish even though they know about BK)

We MAY work this out Tuesday - I made them a VERY reasonable offer. But I'm nervous they will pull a fast one - this is ALL creditors atty does --files 25-30 cases a day in my jurisdiction alone.

If judgment is entered against me, can they still garnish without having stay lifted and/or approval of trustee? My BK atty says no, they HAVE to collect under supervision of BK court.

Opinions?

Lesa in Missouri

[lrprn]

Since the bills are from after you filed bankruptcy, you are responsible for paying them - they can't be wiped out with the bankruptcy. Any company can take you to court for non-payment of a post-filing debt, active Ch 13 bk or not. Glad your lawyer appears to be on top of things in this case and can protect your interests as much as possible.

In Missouri, the utility cannot refuse you service or cut off your current service - that's against Missouri law - http://www.boulandassociates.com/utility-bills.jsp . The utility can however, demand a deposit (typically one month's average bill) that they can keep for up to a year, but after one year of on-time payments, they must return it or use it towards your next bill payment.

Hope you find a resolution, Lesa, and please keep us posted on what happens with your offer to settle.

[HHM]

Honestly, what are you still doing in a chapter 13 if you can't even pay your utility bills...."reality check".

Chapter 13's are not set in stone after confirmation...the trustee's adjust the plan on an ongoing basis, and you, as the debtor, have that ability as well. And if things really go down hill during the plan, you can even convert to a chapter 7. In fact, you may be able to make a motion to to include these past due utility debts in your existing chapter 13 (but you would need to speak with your attorney about doing so).

[Lesa13]

[QUOTE=HHM;92852]Honestly, what are you still doing in a chapter 13 if you can't even pay your utility bills...."reality check".

Well, this utility bill is from a house that I was NOT living in and haven't lived in for over a year, but still own since the mortgage company will not foreclose on it NOR allow me to sell it. Haven't made a payment on it in over a year. However, since mortgage company will not foreclose and will not allow me to sell, I am still the owner of record. Because of this I am, at base level, responsible for this house as well as my own residence, living expenses and current rent, etc. My attorney says court would not approve conversion to a 7 now even if I wanted to - I am over 1/2 way done with the 13. Don't be so quick to judge, please. I have enough people doing "reality checks" on me.

I have actually worked this out with the creditors' attorney today, although not at a payment I am thrilled with. I was NOT expecting to get it wiped out in the 13 (although the creditor is in there) but to figure out if creditors' attorney was continuing to try to go around the BK system (which they blantently are), how far could they get. Hopefully that has been averted - IF they do what they say they are going to do, anyway.

Lesa
Missouri