How Do I Stop a Garnishment?

                                          Ways to Stop Your Wage Garnishment



       Garnishments are devastating to people who earn wages or have money frozen in bank accounts.  In most cases, clients have horror stories about the wrongful debts or inflated figures, or about lawsuits with inadequate notice.   Clients can always choose to fight the garnishments one at a time using legal resources and expensive hourly lawyers.

         My experience shows that when one creditor has garnished you, there are usually several other creditors lurking.  In most cases, but certainly not all, it is more effective to file ONE bankruptcy and wipe out all your debts, including the garnishment, than it is to fight the debts one at a time.  Sometimes one must handle particular debts carefully and methodically (and expensively), but usually wiping them all out is preferable.  At The Slomka Law Firm, we use the free initial consultation to evaluate all options available to fight,contest or reverse a garnishment.

How Do I File Chapter 13 Bankruptcy?

Filing a Chapter 13 Bankruptcy

            Chapter 13 Bankruptcy requires a careful analysis of your income, expenses and types of debt.  In almost every case, this is best performed by an experienced attorney.

            A typical Chapter 13 case is filed with the clerk with about 50 pages of schedules and details disclosing all of your assets and all of your liabilities.  Many clients desire to keep certain things “out of the bankruptcy.”  This is not possible.  Everything you own and everything you owe must be disclosed and included.

            The papers culminate with the Chapter 13 Plan. The Plan tells the trustee and all creditors exactly how you propose to pay back the debts over the next 3 to 5 years using a steady, consistent monthly payment to the trustee.  In most cases, a client will pay back all of his secured car debt and some smaller percentage of his unsecured debt over that time.

            The papers are filed with the Clerk at the Bankruptcy Court, along with a filing fee of $281.  A filer must also complete an online credit counseling class before he or she files the petition.

            At The Slomka Law Firm, we offer a free initial consultation to determine if filing is right for you and what other options might be available.  We can rush file, when needed, but prefer to get to know our clients over a few visits so that we can file proper and accurate papers.

Am I Liable for Real Estate Taxes After Surrender My Home in Bankruptcy?

Real Estate Tax Liability

 

 

 You are NOT likely to have any liability on the real estate taxes due on property you surrendered during bankruptcy.

“Likely?”  you ask?   That is right,  in 99% of cases you will not hear a word from any taxing authority or collector.  However, in some cases, the lender, who is now authorized to foreclose, can take a long time to do so.   These lingering foreclosures have now earned the name “Zombie Foreclosures.”     In these cases, the taxing authority must still attempt to collect taxes and as the last record owner, you are likely to keep on getting bills.   Where else can they send them?

 In most cases your lender has a strong incentive to pay these taxes and will do so to protect their investment.  Assuming the property is foreclosed, a bankruptcy debtor is likely to never hear anything in the future.   But, if the Zombie Foreclosure lingers for years, and the lender does not pay taxes, then the taxing authority (and a homeowners association if it exists) can seek  payment from you even in the face of your bankruptcy.    This is very rare, and the laws are likely to change to close this gap, however, it is a possibility so I like to mention it.   If you suspect you are the victim of an ongoing Zombie Foreclosure, we do have some legal means to limit or eliminate your exposure.  Give us a call at 678-732-0001 to discuss further.

References: http://www.nolo.com/legal-encyclopedia/vampire-foreclosures-when-homeowners-remain-the-home-after-foreclosure.html
https://etax.dor.ga.gov/ptd/county/search.aspx

 

What Can I Do if a Judgment is Filed Against Me?

 Filed Judgments

                                                 
          When final judgments are entered against you, which sometimes can happen without your knowledge. You then have the option to file for a Motion to Vacate or to Set Aside the judgment in the same court in which it was entered.  The Motion to Vacate or Set Aside may be a proper defense, however it will usually only delay a judgment and can cost you legal fees that don't get much relief.  Knowing your other debts and liabilities before taking legal action as well as keeping records of what you learned about the judgment will be critical to the case.  In some cases a more global bankruptcy is a better plan; in others we can attack the judgments one at a time.  Come see the Slomka Law Firm to discuss all of your options.

When Should I Wait To File Bankruptcy?

In many cases, clients come to the Slomka Law Firm in a rush to file bankruptcy.   This is usually because the client faces an imminent foreclosure or repossession, or perhaps the client is already facing a wage garnishment.   We are able to evaluate the case quickly and move with requisite speed to get these petitions filed in time to give relief to the client.   However, in five main situations (there are others which occur less frequently) the client is better served by waiting to file.

 1.        Eligibility for a Discharge.    Under the federal bankruptcy laws, a client can only file for bankruptcy so many times, or so often.  If you have filed a Chapter 7 petition, and received a discharge then you are not eligible for another Chapter 7 discharge for 8 years, or for a Chapter 13 discharge for 4 years.  (Both times are measured from filing date to filing date.)   While all bankruptcies require filing in good faith, and filing on the first day of eligibility suggests an element of bad faith, in some cases in does make sense to allow 8 years to run before filing a new case.

2.  Recent Charges.  It is considered fraud to use a credit card for certain charges or in certain situations, and then to file a bankruptcy shortly thereafter.  The test is whether the person making the charges had a subjective intent to pay the debt, or if they were already planning on discharging the debt through bankruptcy.  Credit charges within 90 days of filing, are strictly scrutinized, and if you have luxury or unusually high charges, it is often beneficial to wait at least 90 days before filing bankruptcy.

3.  Future Debt.   I often tell clients that I hate to file a case on Monday if they are going to incur debt on Tuesday.    Upon filing bankruptcy, all debts BEFORE the filing are included for discharge and NONE of the debts incurred after filing are included.  So before we file and draw that line, it is helpful to make sure the client is not anticipating new debt in the near future.  In many cases this involves non-elective medical debt.  A client who is ill and facing a round of surgery and expensive recovery should consider delaying a bankruptcy filing.

4.  Past Income.   The Bankruptcy means test can sometimes penalize a client who had a high income month, especially a one-time bonus.    This is because eligibility is based on the gross income received in the six months before filing.  So if you had a $10,000 bonus paid five month ago, that single payment can skew your means test and make your file as if you were anticipating future bonuses.   In these cases, it is sometimes advisable to allow 6 months to pass from the receipt of such a bonus.

5. Car Cram Downs.    If your car is worth less than you owe, then in a Chapter 13 bankruptcy, your plan can pay off that debt at the lower figure, saving some clients thousands of dollars, and many hundreds every month.   However, this option is only available if the car debt is more than two and one-half years (910 days) old.  If you have had a car loan for 2 years, you should consider waiting until the debt is 2.5 years old.

The decision to file bankruptcy is a critical one and involve many considerations that are not apparent to lay persons, or even to attorneys who do not specialize in this field.  Howard P. Slomka, and the attorneys at The Slomka Law Firm practice in Georgia and can help you evaluate your bankruptcy options.

How Long Do I have to Wait Before I Refile Bankruptcy?

Bankruptcy laws restrict how often a client is able to refile bankruptcy cases in two important
ways: Successful cases usually mean client must await refiling to avoid repetitive discharges; and. Unsuccessful cases mean a client must wait in order to avoid a situation where creditors are powerless to collect on their debts because the debtor is always protected by a newly filed bankruptcy case.

A successful bankruptcy is one in which a debtor completes the process and receives a
bankruptcy discharge. Following a Chapter 7 discharge, a client is not eligible to file a new Chapter 7
case until 8 years have passed since the date he or she filed the first case. It is the filing date and not the later discharge date that is the starting point. To file a Chapter 13 requires a wait of only 4 years after the filing date of a successful Chapter 7 case. Other wait times exist depending on case specifics, and it is best to seek the advice of an attorney before refiling any bankruptcy case.

An unsuccessful bankruptcy means that a client is eligible to file a second case immediately, but that case is slightly less powerful than the first. It requires a special motion filed by an attorney in order  to ensure that the filer is protected by the extended bankruptcy stay. If this second case is dismissed, then a client may file a third case pending within 12 months, but this third case is virtually powerless absent an immediate motion and hearing before a judge. Because multiple filings are discouraged and get decreasingly powerful, it is best to seek an attorney’s advice early in the process to avoid losing your first and best bankruptcy case.