May be my only hope (its not obi won kanobi)

[jwillia2000]

Looks like bK for me. I have been reading a ton of posts here but still have some questions.

I am getting all my info together for a lawyer's questionaire. My dilemma: my check is being garnished 25% so I can't make all my bills. This is a judgment from a credit card from 4 years ago. 10'000. They have garnished 4 checks,(2 months) for a total of 1600.I am current as now but i won't be for long at this rate.

I do have some other credit cards that are in collections from a long time ago, so I am fearing more suits.Also unpaid medical bills.

I have 2 cars in my name. Both 2004. I drive a taurus that is worth 6000 and i owe 11000. High interest rate! My daughter has an eclipse that was her graduation present. worth 11000 and owe 7200. There is a 7500 car exemption here in OK, Don't really need to keep the taurus but i have to have a car for work. I travel about 100 miles a day.I can't let the eclipse go, DD is in college 200 miles away and i just couldn't do that. So how do i go about a 722 to get a new car. I googledthe 722 thing and found 2 but one is not licensed in OK so no help there.

I am thinking about being late on the taurus payment so i can use the money for the lawyer. He wants 700 down and then 2 post dated checks for 400 each 30 days then 60 days. I am assuming he will file with the 700 down.

I read here that i will get all they garnished 90 days prior to filing but when?

I also have a payday loan for 500. Can I include this on my BK. I have had it for months i just reloan every 2 weeks after paying 65.00 in interest I know if you don't pay they just send your check through.

If I do let the car go back, how long would i get to keep it until they repo? I've gotta have another one by then. I could reaffirm but don't want to pay the 22% interset. I realize any thing i get will have a high ineresr rate but got 90,000 on this one and think my tranny has problems.

Sorry this is so long but I haven't any one else to talk to about it. I am a manager in a fast food place and have made about 36000 so far this year but fall and winter is always slower and i word on bonus so less money. I live in a mobile home only worth about what i owe 10,000. No other assets. I got in this mess when i was going to college and living on my credit cards with very low income so I have 28000 in student loans also but they have given ne many forebearences, This time till 02/08, I am paying 160 a month 4 braces for the dd that is 15 and at home.

Please respond if you have any encouraging words for me. Thanks for Listening

[JRScott]

Okay take a deep breath.


Assuming a chapter 7 filing the lawyer will not file until he has all of his money. By law he can't. So just keep in mind he can't file the papers until all the money is paid.

The Eclipse, is it in your name or your daughters name? If it is in your daughter's name was it ever previously in your name? If so how long ago?

How much is your car payment on the Taurus?

What state do you live in?

How many people reside in your household (that is that you claim on taxes)?

On the garnishment note you will not get that money back in most cases. What will happen is if a single creditor is paid more than 600 dollars in that 90 day time frame the Trustee can and often will go back and take that money from them and distribute it to all the creditors equally. (Depending on the amount will decide if the Trustee will actually go after it).

If you plan to keep the cars the payment have to be current at the time of filing. I know about 722s but have never done one myself so hopefully someone with more experience in them will come forth.

Keep in mind that you can't be garnished more than 25% at a time, even if multiple judgments are entered.

For a bankruptcy you take your last 6 months of pay and double it. Depending on how many dependents you have and state you may or may not be above your state's median income which is used in the means test. If its above you have to take the entire means test but still may qualify for a chapter 7.

You cannot discharge Student Loans currently in bankruptcy just so that you know. You also can't discharge back due taxes if they are newer than 3 years.

Don't worry sounds like you are going through a bad time we all have, it'll get better.

[Boscoe]

The bk filing will stop all these bad things, lawsuits, garnishments, etc. (someone correct me if I am wrong). Not sure how this mechinically happens, i.e. they are already garnishing, so how do they stop?

But talk to a good attorney - that is the important first step. Get your documents together for the filing and take it one day at a time. This will be over before you know it.........

[cathywhite4495]

I had a judgement that I was paying on without garnishment. I fell behind and the creditor entered a motion to set aside my payment plan and garnish my wages. I filed Chapter 7 and brought my papers to the clerk. Within a couple of days I got a notice from the court that all garnishment proceedings must stop. Your lawyer would probably help you out with that but the garnishments should stop immediately after filing.
About being late on the Taurus - keep in mind that you can't reaffirm unless you are current on payments. Also, you might be able to negotiate a lower interest rate on your cars. I was able to lower mine by 6.5% when I reaffirmed. I looked into 722 loans and the interest is really high. You might be able to use it to get another car though and surrender the one with problems. Your lawyer can help you out with those options.
Good luck and welcome!!

[razmom]

I also have a payday loan for 500. Can I include this on my BK.

I included mine on a Ch. 13; don't know if it would be different for a 7 (don't see why it would be, though). Definitely check with an attorney on that, and on changing checking accounts. The payday loan place will send your check through even if you tell them you've filed BK. Because they're sweet like that.

Best of luck to you!