A couple questions about property and "arbitration"

[GoingUnderInNV]

OK, I have a couple more questions. First, I'm confused about property ("stuff") under a Chapter 13. I know Chapter 7 is liquidation, but the more I read the more it sounds like Chapter 13 is liquidation AND payments. Is property that I own (paid for car, my bike, my camera, etc) seized in a Chapter 13???

Also, I've read quite a bit on the whole "arbitration" thing, but I can't find a concrete answer to this. I just got off the phone with Mann Bracken re: an MBNA debt, and it came down to "OK, you'll be served at your place of employment." I assume I'll be served something on the asset hearing I've been reading about? How long until that happens, assuming the guy just recommended arbitration process begin today?

Will filing a Chapter 13 end this arbitration process/judgement? At what point in the arbitration process am I more or less screwed and have to stick with any kind of garnishment (which is what they're gonna go after)? What % will a judge let them sieze of my pay?

I'm hoping to get rolling on the Chapter 13 shortly, but finding an attorney (more many in my area do personal bankruptcy anymore) and being able to pay him are SERIOUS points of stress right now...

[lrprn]

Two pieces of advice for anyone considering filing Ch13 bankruptcy:

1. GET A LAWYER! You need one who specializes in consumer bk and is familiar with the new bk laws that went into effect last October. Ch 13 is extremely difficult to file pro se (without a lawyer) - a high % of Ch 13 cases that are filed without a lawyer are dismissed by the court because of innocent mistakes. There are honest ways to pay your bk lawyer when you are broke - don't want this to be too long so that's a good new thread if you are interested.

2. Start studying up on Ch 13 immediately so you understand just what you are considering. There's great information in the forums here about Ch 13, and here are some of my favorite Ch 13 websites that I found very helpful:

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html

http://www.abanet.org/publiced/practical/bankruptcy13_whatis.html

http://www.moranlaw.net/bankruptcybasics.htm

http://www.debtworkout.com/c13faq.html

http://www.filing-bankruptcy-form.com/chapter-13-faq.html

Good luck - after doing some initial reading about Ch 13, please keep posting your questions and we'll do our best to help.

[lrprn]

GUIN, see my answers to your questions in red below....

OK, I have a couple more questions. First, I'm confused about property ("stuff") under a Chapter 13. I know Chapter 7 is liquidation, but the more I read the more it sounds like Chapter 13 is liquidation AND payments. Is property that I own (paid for car, my bike, my camera, etc) seized in a Chapter 13???

Your big assets (home, cars, bike, personal belongings, etc) can't be seized by the courts unless you want them to be taken back by your creditors. That's one of the advantages of Ch 13 - you get to keep assets in return for three to five years of debtors' prison while you pay for the privilege (only half joking - it's been a tough bk day, I'll be in a better mood tomorrow).

Also, I've read quite a bit on the whole "arbitration" thing, but I can't find a concrete answer to this. I just got off the phone with Mann Bracken re: an MBNA debt, and it came down to "OK, you'll be served at your place of employment." I assume I'll be served something on the asset hearing I've been reading about? How long until that happens, assuming the guy just recommended arbitration process begin today?

Here's a Nevada free legal services website that has information about arbitration, garnishment and attachment - http://www.washoelegalservices.org/lawsuit.htm

Will filing a Chapter 13 end this arbitration process/judgement? At what point in the arbitration process am I more or less screwed and have to stick with any kind of garnishment (which is what they're gonna go after)? What % will a judge let them sieze of my pay?

Filing Ch 13 should stop the process and judgment. About pay garnishment, that's controlled by your state law: "Nevada applies its own statutory exemptions that are generally more liberal than the Federal Exemptions. Nevada allows a wage garnishment of up to 25% of the debtor's disposable earnings. Child support garnishments take priority regardless of when the levy was received. A wage garnishment is good for one hundred and twenty days (120) from the date of service of the writ on the employer." [from http://www.fair-debt-collection.com/...ments.html#29]


I'm hoping to get rolling on the Chapter 13 shortly, but finding an attorney (more many in my area do personal bankruptcy anymore) and being able to pay him are SERIOUS points of stress right now...

We've all been where you are right now. The best thing you can do is start learning everything you can about bk and Chapter 13, then keep asking questions and more questions....some of our gurus have been here for years and are still asking questions Hang in there - the stress is highest at the start, then tends to quiet down over time. We're here for you - come vent in the forums any time.

[SinkingFast]

We've all been there, NV.

First we were teetering on the brink of Foreclosure. Now we're teetering on the brink of being sued for 2 accts with Citi.

If you're at all serious about filing BK, then don't move forward with the Arbitration Process. Your Creditor is wanting to get you legally bound into some sort of financial settlement. Throw MBNA into the BK and forget about them.

Ch 13 is a "wage earner's" BK. You won't loose any assets that you don't want to return to the Lenders. Secured debts get priority and then your unsecured Creditors will get the scraps. Once you're done with your payment plan, you're done. You won't owe anybody another penny.

Ch 7 is Liquidation. You'll only get an equity allowance for your home and other possessions. Just because you own more than what's exemptable doesn't mean the Trustee will sieze and sell anything. Trustees are known for striking bargains with BK filers every day. Simple to settle with you for a known amount than sieze and sell property where they don't know for sure what they will or won't make.

Call some attnys. Set up appts for Consults. Generally Consults are free and attnys can answer all your questions. Plus, you'll learn more and more about the process with each Consult.

[GoingUnderInNV]

Thanks for replying, everyone! I appreciate the feedback more than you can imagine!

SinkingFast, you mentioned not going forward with the arbitration. How can I do that, considering I'm about to get served, and I'll be in deeper trouble if I don't show up for whatever hearing the summons is for? Is there a sufficient amount of time between the threat of service (two days ago), whenever I get served, and whatever happens at the "hearing"? I've got a couple appointments, but given what others have said about the time it takes to get a CH 13 rolling, I'm wondering if I have the time to go forward with it???