New Here with questions

[pilkerton21]

My boyfriend is in desperate need of filing for bankruptcy. He filed a chapter 7 a little over 7 years ago, so I know that is not an option until the 8 year mark. In the mean time he has gotten garnished by one cc and we just got a warrent in debt for another one. We cannot afford another garnishment, so I am thinking a Chapter 13 would be the way to go.

Can you give me the basics and what to expect? Do we have to pay an attorney up front or can those fees be added in? Please help, we want to get moving on something quick so we can stop the garnishment!

HELP!!!

[tobee43]

My boyfriend is in desperate need of filing for bankruptcy. He filed a chapter 7 a little over 7 years ago, so I know that is not an option until the 8 year mark. In the mean time he has gotten garnished by one cc and we just got a warrent in debt for another one. We cannot afford another garnishment, so I am thinking a Chapter 13 would be the way to go.

Can you give me the basics and what to expect? Do we have to pay an attorney up front or can those fees be added in? Please help, we want to get moving on something quick so we can stop the garnishment!

HELP!!!

"The technical answer is that you can file as often as you like, but you may not get the result you want, especially because of the post-October 17, 2005 changes in the bankruptcy law.

A debtor cannot obtain a discharge in a Chapter 7 case if the debtor obtained a discharge in (a) a Chapter 7 case filed within the past 8 years, or (b) a Chapter 13 case filed within the past 6 years. The time periods in either case are measured from the commencement dates of the respective cases. The dates of discharge have no bearing on the disqualification.

A debtor cannot obtain a discharge in a Chapter 13 case if the debtor obtained a discharge in (a) a Chapter 7 case filed within the past 4 years, or (b) a Chapter 13 case filed within the past 2 years. The time periods in either case are measured from the commencement dates of the respective cases. The dates of discharge have no bearing on the disqualification.

In addition to these changes in how often a debtor can obtain a discharge in bankruptcy, Congress also enacted changes intended to reduce or eliminate the effect of the bankruptcy stay for serial filers. To oversimplify the changes, the stay will last for just 30 days if a bankruptcy case of the debtor was pending within the preceding year but was dismissed. The stay will simply not come into existence at all if two or more cases were pending within the preceding year but were dismissed. If a Chapter 7 case is dismissed for abuse and the debtor files under a new chapter (such as Chapter 13), however, the stay has its normal duration.

Notwithstanding the above, you can be barred from filing a new case for 180 days after a case is dismissed, if the dismissal (a) is because you willfully failed to abide by an order of the court or to properly prosecute the case, or (b) was at your request after a creditor requested relief from the automatic stay. "

[pilkerton21]

Thank you. I was able to obtain most of that information from Googling, but I am really looking for help and advice from those who have been through the process.

I just want to make sure we are doing the only thing we can to stay afloat by filing a Chapter 13. It is the only way I can see because if we get hit with the 2nd garnishment we are in financial ruin. I was hoping that filing a chaper 13 would give us a monthly payment we could handle and be a set amount vs. 25% of pay per the ganishment.

[tobee43]

Thank you. I was able to obtain most of that information from Googling, but I am really looking for help and advice from those who have been through the process.

I just want to make sure we are doing the only thing we can to stay afloat by filing a Chapter 13. It is the only way I can see because if we get hit with the 2nd garnishment we are in financial ruin. I was hoping that filing a chaper 13 would give us a monthly payment we could handle and be a set amount vs. 25% of pay per the ganishment.

yes...sorry the answer was so generic but i was feeling badly that no one responded... i actually thought you may have already done some research as you were aware of the basic information.

you really cannot find many that attempted to file not using the time line guidelines...although reading through the lines of the actual law, if you have, you can file but not get discharged.

i would think accordingly you would be maybe allowed to file the 13.

[pilkerton21]

I appriciate the concern and the reply.

We are going to call a lawyer on Monday and see if we can get a consult for a Chapter 13. Just wondering what to expect and if we will be charged for the first visit or if it will be added in with the bankruptcy expenses.

[tobee43]

I appriciate the concern and the reply.

We are going to call a lawyer on Monday and see if we can get a consult for a Chapter 13. Just wondering what to expect and if we will be charged for the first visit or if it will be added in with the bankruptcy expenses.

well...either the 13....or what i would do depending on the total amount of the debt ....i would go for the chapter 7 again. just because you have retained an atty does not mean you have to "file"....but the atty should be able to negotiate with some of the creditors while you put the time distance between now and the time of the filing.

don't forget...for many a 13 is like a rope around you neck for 3-5 years...i have seen many successful at it, but it's a hard go of it.

good luck!

[pilkerton21]

I would love to do that, but I am worried that it still won't stop the current garnishment or stop the warrant in debt coming through. Total debt we are working on figuring out this weekend, but it's looking in the ballpark of 25,000. He can't really "file" for the Chapter 7 until September 2011.

I was under the impression that you could convert a chapter 13 into a chapter 7 at some point if it wasn't working out. Any info on that?

[tobee43]

I would love to do that, but I am worried that it still won't stop the current garnishment or stop the warrant in debt coming through. Total debt we are working on figuring out this weekend, but it's looking in the ballpark of 25,000. He can't really "file" for the Chapter 7 until September 2011.

I was under the impression that you could convert a chapter 13 into a chapter 7 at some point if it wasn't working out. Any info on that?

yes, you can convert it.

[free2breathe]

The first thing I'd do is check the garnishment laws in your state. You can only be garnished up to a certain percent of your wages. You can have several creditors attempt to get your wages garnished, but there should be a limit as to the maximum amount that can be taken from you at one time. In other words, after the first garnishment, everyone else would have to get in line.

That might at least buy you some time till he can file a 7 again.

[newbie2]

My boyfriend is in desperate need of filing for bankruptcy. He filed a chapter 7 a little over 7 years ago, so I know that is not an option until the 8 year mark. In the mean time he has gotten garnished by one cc and we just got a warrent in debt for another one. We cannot afford another garnishment, so I am thinking a Chapter 13 would be the way to go.

Can you give me the basics and what to expect? Do we have to pay an attorney up front or can those fees be added in? Please help, we want to get moving on something quick so we can stop the garnishment!

HELP!!!

I wouldn't worry about the 2nd garnishment. In most states (if not all..) the wages can only be garnished once, everyone else with a garnishment has to wait in line..(once the first garnishment is finished, then the 2nd can collect.) You have time to talk to a few attorneys to make sure your boyfriend is making a wise decision about a 2nd bankruptcy.

Edited: Free2breathe and I were typing the same response at the same time :-)

[free2breathe]

"Thankfully, the garnishment limits outlined by federal and state laws define the maximum total amount that can be garnished from a debtor’s paycheck at any one time. For example, under federal law, the maximum that a consumer can be garnished for the collection of an unsecured debt judgment is 25% of his after-tax earnings. Generally speaking, if a consumer has more than one judgment creditor attempting to garnish his wages, the creditor who files for garnishment first is paid first; any garnishments received while a garnishment is already in place will sit unpaid until the first garnishment is paid. " I found this info searching "how many creditors can garnish my wages at one time".

[pilkerton21]

I wouldn't worry about the 2nd garnishment. In most states (if not all..) the wages can only be garnished once, everyone else with a garnishment has to wait in line..(once the first garnishment is finished, then the 2nd can collect.) You have time to talk to a few attorneys to make sure your boyfriend is making a wise decision about a 2nd bankruptcy.

That is good news, I guess I didn't really think about that! I just figured that each one could collect their share and leave us hanging. We are going to talk to an attorney hopefully sometime next week and try to get some more detailed information.

[free2breathe]

As far as your question about fees: You should be able to get an initial consult free with any bankruptcy attorney. If you do decide to go the Chapter 13 route, they will be able to include your fees in the plan I believe.

[pilkerton21]

Thank you all so much, you have been a great help!

[momofthree]

Just to clarify, you cannot convert the new ch.13 into a ch.7. The 8-year-rule between filings applies from filing date to filing date. When you convert a case, it uses the original filing date. Therefore, you would not be able to convert to a ch.7. HOWEVER, you could dismiss the ch.13 as soon as you are eligible for the ch.7 again and then re-file as a ch.7. Keep in mind that this would mean you/he had 3 bankruptcies on his credit at the same time. Dismissing the ch.13 does no erase it from the credit report. Although, that only matters if he intends to use credit again...Personally, I'm over credit, cash is king in my house!