Close to BK filing. Need advice, please.

[bkanonymous08]

Thank you for the information.

For my 401K, it's water over the dam. I thought because I could take it out, even with a 10% penalty, I had to use it to pay my debt. So, I depleted it.

For my pension (different from 401K), I will not receive any payments many years from today. It's the same thing for my social security (if it is still there when I reach my retirement age).

[bkanonymous08]

Finally got a job. Will creditors garnish my wages?

Hi

I finally got a job and am trying to save up money to pay for the bankruptcy filing costs (around $2.500).

I think until I file chapter 7, my creditors can try to garnish my wage. This will definitely destroy my chance to file.

Would someone please tell me what I should do?

Thanks

[StartingOver08]

Congratualations on your new job - that is something to celebrate

Do not worry about garnishment. Before any creditor can garnish your wages they must first obtain a judgment against you. In order to obtain a judgment, they must first sue you. If you receive a summons prior to your filing, you can delay the process by answering the summons if you so desire. You are in a slightly different position because you are preparing to file BK. There is even a post on another thread about not responding and just filing to get rid of the judgment.

Once you retain the attorney, which you can do usually for a small amount like $500, then you will want to advise him/her of any summons you receive. It takes creditors a long time to actually begin to sue - unless they think you have a lot of assets, then they might speed up their timetable. It really does not sound like you have a lot of assets for them to chase down...so they usually just try to scare you into paying by threatening suit/garnishment.

Your focus right now should be preparing the paperwork your attorney will need to file the forms, because it takes time to prepare the backup data. Before you know it, your 70 days miniumum will be up. Also some attorney's take payments before the filing for their fee.

[bkanonymous08]

Thank you, StartingOver08.

I had an initial consultation meeting with a lawyer 3 months ago. He told me the same thing about putting down $500 for retainer agreement. At that time, I did not have the money to do it. Now with the job, I hope to be able to do soon.

There is one thing I would like to ask for advices from everyone here.

I read in another thread about filing chapter 7 by oneself. I think it's a good idea to save me +$2,000.00 attorney fees, if I could.

Besides doing a lot of reading, are there any dangers (pitfalls?) of filing by myself? For example, if I screw up - honest mistakes not fraudulent ones - on the prepartion of the filing, will my case be thrown out and I will own the debts forever?

Where should I start, if I may, in order to save me $2,000?

Thank you for all your helps and supports.

[bkanonymous08]

Does bad credit hurt check cashing?

I tried to cash my paycheck from a very well-known store at Wal Mart yesterday. They enter my SS then declined to cash my paycheck. They gave me a paper that says something about Fair Credit.

I could have deposited my check to my account. But the money would not be available until the following day and I needed the money to pay my rent yesterday.

I know that my credit score is now bad, I am not aware that bad credit can also make me unable to cash my paycheck. I am afraid now that my bank may close my account if they find out I have bad credit.

Any thoughts? Thank you.

[Tbornetun]

Cash it at the bank it was drawn from.

[StartingOver08]

Yes, the previous poster is right, you can cash the check at the bank where it was drawn.

However, if you are having problems cashing checks elsewhere; it is usually a result of one of two items:
1) its a third party check, and most banks will not cash 3rd party checks
OR
2) you have a notation in chexsystems. This would be the most common reason.

Chexsystems is the database of consumers that overdraft accounts. You do NOT want to be on this database. Once you land on it, you are there for 5 years.

check out this link for info:

https://www.consumerdebit.com/consumerinfo/us/en/chexsystems/index.htm

I am mentioning this, because if you are on chexsystems - you can open an account somewhere else that does not use this database ( a limited number of places). You will need this information, especially considering the BK

[bkanonymous08]

I did cash my paycheck at the bank the check was drawn. They charged me $5 for being non-customer of their bank. Well I had to pay them the bloddy fees this time because I really needed money to pay my rent.

Next paycheck will be deposited at my own bank since I can wait one day for the check to clear.

Regarding chex system. I am absolutely sure that I don't have any problem with it. I just opened my checking account 2 months ago. I have never had any bounced checks or bad checking account. I think the problem of cashing check at Wal Mart is with bad credit score. The paper Wal Mart gave me says something about Fair Credit Report.

Additional info:

The bank that opened my checking account is a a very well known bank. They did a thorough check on me and everything was OK.

[bkanonymous08]

I think I spoke too soon about not being on ChexSystems!

I went to the website you recommended and found this statement:


Chex Systems, Inc is a consumer-reporting agency governed by the Fair Credit Reporting Act (FCRA) and other laws. The Federal Trade Commission enforces the FCRA.


The paper I got from Wal Mart did say something about Fair Credit.


Now I am worried and confused. I have never had any bounced checks or bad checking accounts. How could I be on ChexSystems? Could it be that one of my creditors/collectors put me on the ChexSystems because of my bad credit?

[StartingOver08]

Not just because of bad credit. Usually it is because of overdrafts - could be by a check or a debit that remains unpaid. INCLUDING bank fees on a closed account. Pull your record from Chexsystems. Remember - just because it may be listed on their system - does not necessarily mean the info is correct. You can challenge incorrect info on chexsystems the same was you do on other CRA's.

[bkanonymous08]

Thank you, StartingOver08, for a very quick reply.

I already ordered the report online. I will call the Chex Systems tomorrow to confirm that order.

In the past 10 years, I have closed 3 checking accounts. All of them were closed by myself going to the bank and closing them. One was closed almost 2 years ago; one was closed several months ago and the last one was closed just 1 month ago. I have never received any notice about NSF on any of my accounts from the banks.

Well, I will have to wait for the report from Chex Systems to find out what is on the report.

Can the creditors/collectors put me on Chex Systems simply because of my bad credit?

I am off to work now.

Many thanks for for your help.

[bkanonymous08]

Is there a number with live operator for Chexsystems? I tried to call their toll free number but that was only automated.

Thanks

[bkanonymous08]

Bad Credit DOES affect one's check cashing at Wal Mart

Finally I received my report from ChexSystems. There was absolutely nothing wrong in my report. One one bank made an inquiry on me and that was the bank that opened my account 3 months ago.

In the section "Reported Information", there was "no information found".

In the section "Inquiries Not Initiated By Consumer Action", there was "no information found".

In the section "Retail Information", there was "no information found".

Apparently, my bad credit prevented me from cashing my pay check at Wal Mart. But that was the only time I needed to cash the chek immediately in order to pay my rent. So, adios Wal Mart, thanks for nothing.

I hope this will help someone who will be in the same situation as mine.