Im 1 month away from filing. Now ordered to appear

[Lexy1969]

So while saving up to file bankruptcy I finally have caught a break and can make it happen next month. One of many creditors has finally come local and filed a judgement. Obviously I didnt appear to fight it and now they have filed an order for me to appear next week to go over financial statements under oath. One years tax returns (I havent filed yet) paystubs and list of assets (none). My question is has anyone been through this? I have no disposable income so will the judge/commissioner see this and not allow them to garnish wages or something of that nature? I have to show or a civil warrant will be issued against me. Any advise is appreciated.

[lrprn]

A question first...is this creditor secured or unsecured?

[keepmine]

You've been summoned for a debtors exam. That's a command preformance.
You need to file ASAP. Ask your lawyer if he can do a "skeleton filing". That's just a brief petition that will halt all collection activity-including this court appearence. You'll have 10 days {I think} to file the balance of the petition. Have you done the CC yet and gotten the certificate?
Whomever makes the call on wage garnishments will be tied by state law. If your state allows some exemptions for low income.etc. you'll get a break if not, you're stuck.
Also, empty your bank account and go to cash NOW! Stop direct deposits of your pay check.One of the questions you'll be asked is, where you bank.

[Lexy1969]

This is unsecured debt.

[Lexy1969]

Also. If they want my paystubs wont they see where I work and garnish that as well?

[Lexy1969]

Also. I have no assets or cash. Living paycheck to paycheck but can file in the next 30-45 days. Wouldnt it take some effort for them to garnish my wages? Buy me some time to file? Should I just stop direct deposit and go to cash until I file?
Thanks for any help!

[HHM]

No two ways about it...this is bad.

1. You must show up or you can be held in contempt of court.
2. You must provide the requested documents, or you will be held in contempt of court.
If you are held in contempt (that is civil contempt) the court can issue a arrest warrant.

Is the exam being held at the court house or in another location. If the exam is being held in the court house, the reason for doing so is so they can get a garnishment order, or asset seizure order ON THE SPOT.

When it comes to garnishment, it does not matter what your "disposable" income is, it only matters what you can exempt. (most states allow you exempt 75% of your after tax income, which means the creditor can garnish 25% of your paycheck. Also, as was already pointed out, if you are poverty level, you can sometimes exempt 100%).

Unfortunately, I don't really have any ideas about how you could buy time. These exams are the LAST resort, so in an essence, you have run out of time.

[Lexy1969]

OK. Thanks. So if I file and not everything is there (tax return is being completed) will this stop them and buy me some time. Since I dont have any assets Im thinking of filing pro se and saving the 1200 for the attorney that is taking some time to save.

Also I just read that in Arizona my employer has the opportunity to contest a writ of garnishment. Could this buy me some time??? Or is that incorrect?

[Runnin on empty]

Lexy, I would honestly highly advise AGAINST filing pro se in your case. You have 10 days before you need to appear at this court case, and it doesn't look good no matter how you slice it. You need to get filed, and filed fast. The money you'd be saving by filing pro se may pale in comparison to the headaches you'll have to face. Let somebody who knows the law in your area inside and out deal with it.

Ultimately it is your choice, but seeing is the clock is heavily ticking against you, I suggest hiring a lawyer and filing ASAP.

[Lexy1969]

So maybe I should go to court for the hearing and let them garnish 25% and file with attorney. No possible way for me to file before then unfortunately. My taxes wont be complete until late next week. I can probably sustain them taking one months of garnishment out then having it stopped by an attorney. Im going to call the attorney filing this against me to see if we can work something out. Im sure they dont care or want to do anything. Im not going to provide them with any info that could lead them to places I dont want them to be right now.

[HHM]

Incidentally, did you request an extension to file your taxes. You said you have not filed your taxes and the hard deadline is April 15.

[Lexy1969]

Yes I filed. I will get money back for 2006 and 07 so this usually is not a problem until now. Of course the money will go to the IRS which is fine. I was thinking that if they can only garnish 25% of my wages. Should I contact the IRS to go ahead and do that to get in front of them?? Im going to have to pay them off anyway. I think you can only have 25% taken out total. Thanks all, you have been very kind with the advice.

[catalina2225]

I'm in Arizona and filed in August. I found and excellent attorney if you are in the Tucson area. I was served and about to go through what you are going through now and am so glad I hurried and filed right away. It stopped everything right away.