When it rains, it pours. Two years ago, a colleague loaned $10K to me. When my father had several strokes and daughter had some medical problems, he said no problem, pay me when you can. I haven't been able to pay him anything in the past 1 1/2 years. He stopped by my office the other day and as we were chatting, I mentioned that one of my creditors had secured a default judgment against me and I was having to work with that creditor or they would garnish my wages. He knows I can't pay him (this would be a preference) and that if I declare BK, he will be in the payback plan. He then suggested that perhaps he should file a lawsuit to recover his money and then pursue a wage garnishment. I told him that this would still be a preference, and I'm pretty sure the Trustee would ask for the money back. Not only that, but I suggested that this sounds like conspiracy to commit fraud. He was a bit p*ssed (can't say I blame him). I suspect he may very well file suit and gain a judgment, and eventually garnishment. Is this going to screw things up for me? This is definitely a wrinkle I didn't count on.
-
-
The screwy part will be the money he gets from your paycheck before you file. That might mess with your monthly budget as far as living goes.
Once you file, you'll be moved out of the picture. The Tango will be between your "friend" and the Trustee. And the Trustee generally wins.
Hope that guy sets aside the money in a separate acct for when he has to pay it all back to the Court!!
You can't say you didn't warn him!!Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen... -
What is keeping you from declaring bankruptcy before you get anymore garnishments? If your in a chapter 13 plan, at least he will get something each month even if it is a small amount. After the discharge, you can continue to pay this person back what you owe him.Chapter 13 Filed 4/03/06 :blink: 341 Meeting Complete 5/11/06 :yes2:
Plan Confirmation 6/16/06 :yahoo:
Discharged: 1/5/2010 :yahoo::yahoo::yahoo::yahoo:Comment
-
If I remember correctly, Tree is suffering thru declining income. Rather than Confirm a Plan with higher payments and ammending later, Tree is waiting until the income situation stabilizes.Originally posted by aa06a47 View PostFiled Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
Comment