Hello all. I have been lurking and reading a lot here over the past several days. There are so many supportive and helpful people.
My story starts quite a while ago. Very quick background right now. I live in Illinois. I had issues with Beneficial, owed them over $25,000, and a year ago, after not being able to work out a payment plan with them, they froze my bank account. The money was handed over to them, and the ensuing finance charges from my bank, and the other banks ammounted to over $2000 in just fees alone, not to mention the value of the bounced checks.
I tried working with them on the issue again, and rather than agree to the offer they gave me, I chose to have my wages garnished as it seemed safer at the time. It meant more money per month going to them, but there was no risk of a late or missing payment. The garnishment was pulling over $1000 per month from my paychecks, but the debt would be paid in 2.5 years rather than the plan they offered which would have had me paying them $500 per month for nearly 13 years. Anyway, on June 25, they put another freeze on my bank account, this time with devistating consequences.
We had finally worked out a loan modification that wasn't exactly what we wanted, but was close. One contingency was that since we hadn't made a mortgage payment in over two years, that our first payment would have to be on July 1, and if it was even one day late, the loan mod was null and void. A plan I had worked out regarding my student loans was similar. My student loan payment and mortgage payment was in my account when they froze it. Both agreements are now null and void.
After consulting with an attorney, the only way to stop Beneficial doing this again, as frequently as every 30 days, without filing a motion showing that my assets are exempt, was to file for bankruptcy. I filed for chapter 7, and received my case number yesterday, July 8.
I am happy with my attorney, but still have so many questions, and would like some second opinions as well. I have read a lot here, and have used the search to find information, but I guess I am wanting further clarification, and just really some reassurance. I know I will ask a lot of questions over the next several months, but I guess my first biggie is this one.
I understand the concept of the automatic stay. The money in my frozen account has not been handed over to Beneficial yet, and I have been working with my bank to hold onto it as long as possible. THey had until today to answer the interrogatories as to how much was in the account. The attorneys for Beneficial have been notified of the BK and certainly are aware of the automatic stay. If the atorneys for Beneficial ask that the money be turned over to them anyway, what happens then? Am I correct in my understanding that the money should not be handed over? THe Beneficial has no legal right to it? What should my bank do? What recourse, if any do I have if the money is turned over?
I have the same basic questions regarding the wage garnishment. My employer has not given all of the witholding to Beneficial yet. My understanding is that the automatic stay also applies there as well. That anything that has not been physically handed over at the time I received my case number, should not be handed over, and should be returned to me?
How long does it sualy take for the money to be released back to me, either the bank account or the wage garnishment?
Another slightly unrelated set of questions regarding my student loans. I noticed after filing that I did not include them in my list of creditors. I think I didn't include them because I knew they were not dischargable. Is there any benefit to ammending my filing to include them? Does the automatic deferrment still apply even though they are not listed?
I still have many more questions, but I think I have asked enough for now.
Thanks you all so much, not only for the generous help, but also the great community support. It has really helped.
My story starts quite a while ago. Very quick background right now. I live in Illinois. I had issues with Beneficial, owed them over $25,000, and a year ago, after not being able to work out a payment plan with them, they froze my bank account. The money was handed over to them, and the ensuing finance charges from my bank, and the other banks ammounted to over $2000 in just fees alone, not to mention the value of the bounced checks.
I tried working with them on the issue again, and rather than agree to the offer they gave me, I chose to have my wages garnished as it seemed safer at the time. It meant more money per month going to them, but there was no risk of a late or missing payment. The garnishment was pulling over $1000 per month from my paychecks, but the debt would be paid in 2.5 years rather than the plan they offered which would have had me paying them $500 per month for nearly 13 years. Anyway, on June 25, they put another freeze on my bank account, this time with devistating consequences.
We had finally worked out a loan modification that wasn't exactly what we wanted, but was close. One contingency was that since we hadn't made a mortgage payment in over two years, that our first payment would have to be on July 1, and if it was even one day late, the loan mod was null and void. A plan I had worked out regarding my student loans was similar. My student loan payment and mortgage payment was in my account when they froze it. Both agreements are now null and void.
After consulting with an attorney, the only way to stop Beneficial doing this again, as frequently as every 30 days, without filing a motion showing that my assets are exempt, was to file for bankruptcy. I filed for chapter 7, and received my case number yesterday, July 8.
I am happy with my attorney, but still have so many questions, and would like some second opinions as well. I have read a lot here, and have used the search to find information, but I guess I am wanting further clarification, and just really some reassurance. I know I will ask a lot of questions over the next several months, but I guess my first biggie is this one.
I understand the concept of the automatic stay. The money in my frozen account has not been handed over to Beneficial yet, and I have been working with my bank to hold onto it as long as possible. THey had until today to answer the interrogatories as to how much was in the account. The attorneys for Beneficial have been notified of the BK and certainly are aware of the automatic stay. If the atorneys for Beneficial ask that the money be turned over to them anyway, what happens then? Am I correct in my understanding that the money should not be handed over? THe Beneficial has no legal right to it? What should my bank do? What recourse, if any do I have if the money is turned over?
I have the same basic questions regarding the wage garnishment. My employer has not given all of the witholding to Beneficial yet. My understanding is that the automatic stay also applies there as well. That anything that has not been physically handed over at the time I received my case number, should not be handed over, and should be returned to me?
How long does it sualy take for the money to be released back to me, either the bank account or the wage garnishment?
Another slightly unrelated set of questions regarding my student loans. I noticed after filing that I did not include them in my list of creditors. I think I didn't include them because I knew they were not dischargable. Is there any benefit to ammending my filing to include them? Does the automatic deferrment still apply even though they are not listed?
I still have many more questions, but I think I have asked enough for now.
Thanks you all so much, not only for the generous help, but also the great community support. It has really helped.
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