Is execution the same as "judgement"?

[deedee642]

Hi,
I am currently in Ch. 13 bankruptcy. However, they have not dispersed any of my money to creditors yet because they were working on a modification within my bankruptcy. In May I am leaving my teaching job and doing an Early Disability Retirement. Wisconsin Statue 40.08 says that Employee Trust Funds (where I would get paid from) are exempt from: credit collection, garnishment, execution, assignment or attachment. My attorney said that only means that if they got a judgment they could not take the funds directly from my check; however, they could take it out of my bank account? Do you think he is correct?
Thanks,
Dee

[tobee43]

yes, he's correct, and then the burden falls on you to get your money back if that income is a state exempt income. in other words if the income is exempt and the money that is exempt is being directly deposited to your checking account they can grab it. they you have to prove the income is in fact, exempted income and try to get your money back.

if you are leaving you job early, does your DSI cover the payments you set up in the 13?? just be careful about that and if there is a big difference in income due to the early out, you may want to rework your numbers to more closely fit into the income you will be truly rec'ing from may on.

some back protect accounts that have 'exempt" monies deposited into them. or so i have heard. we have something similar here in florida, exempt are police, firemen and teaches retirement funds or pensions...as well SS SSI SDI.

[kornellred]

If you are in Chapter 13 bankruptcy, the automatic stay prevents creditors from taking any action to collect monies owed, and that includes obtaining a judgment.

[LadyInTheRed]

"Is Execution the same as Judgement"

No. A judgement is a court's order resolving a case. Execution is the plaintiff's action to collect on a judgement in it's favor.

[deedee642]

Thanks for the clarification.

[deedee642]

Now that I have a date and estimated amount that I will be paid, I plan on meeting with my attorney to see if we can adjust the payments. I will be making extremely less money. Unfortunately, I am like 4,000 above passing the means test for converting to a Ch. 7.

[justbroke]

I will be making extremely less money. Unfortunately, I am like 4,000 above passing the means test for converting to a Ch. 7.

If you are disabled and the new amount you'll receive, under the retirement plan, puts you in a condition where your (allowed) EXPENSES exceed your INCOME, then you are a candidate for a Chapter 7 discharge. Being over the median income does not make you ineligible for a Chapter 7 discharge.

If this disability is of a type that could qualify you for a hardship discharge, from the Chapter 13, I'm reasonably sure the attorney could pursue that as an option. Of course it would depend on the nature and type of your disability and your potential for earning. In any case, I might bring up "hardship discharge" to my Chapter 13 attorney.

However, if you're in this Chapter 13 to save property, because you are in arrears, or you are taking advantage of a lien strip, you must plan this accordingly.

Also, while your Employee Trust Fund payments may be exempt to attachment, you could use them to fund a Chapter 13. If you really don't need to be in a Chapter 13, that would be the best case. I suppose that you are trying to get a modification of your mortgage and if that were to come through, you'd be good to go. I was able to work out a modification and it took less than 6 weeks with NO trial payments. I don't understand why the banks are so slow with modifications... either do them or don't do them!