Filing for BK on Monday but have some worries

[TomBrady]

Okay so I am filing for BK on Monday (Ch 7), I have intended to do this for quite sometime however I have been unable to afford attorneys fees (2000+) so I have been trying to wait it out until my tax returns come in for the year. However yesterday my employer got a garnishment notice and this is forcing my hand. I make a pretty significant salary however we are a single income family so 25% of my "disposable" income more than $600 bi-weekly is a huge hit for us to take. My payroll people say that is going to happen on my next check (this coming Friday). Because of this I opted to self-file and paid about $200 for an online firm to prepare the documents for me. They say that they can have the forms completed and I can drive them down to the BK court on Monday and that will enact the automatic stay and then they can not garnish the wages on friday. I have a couple of concerns though:

1. It seems as though everybody going through BK has an attorney, is it very smart to self-file? I do not own a home or have any assets of real value.

2. Will the garnishment actually be stopped?

3. Is it possible for a garnishment to occur on a tax refund check?

4. Will the tax refund check be considered as part of my assests because I have filed for the refund even though I have not yet received the check?

Thank you for any opinions that you may have on these issues

[Flamingo]

While there are people who have filed by themselves, not too many people recommend doing that because of the errors that can be made and all that is involved. Many attorney's raised their fees when the new law came into effect in October 2005 due to all the extra work involved in filing either a Chapter 7 or Chapter 13. Many attorneys quit filing Bankruptcies also at that time. There are people on here who have filed pro se and probably can be of help to you but I myself would not have utilized an outside service to prepare my bankruptcy filing due to the complexities and work/time involved, especially after having gone through the process and saw what was involved. Any mistake can delay the entire process.

[almost]

I'm going to try todo it myself. I have looked in to the online services. Bridgeport, $149. and USA bankruptcy, $189. I'm filling in the paper work know. If it seems to complicated I will go with the online service. Read the threads on this forum, tactical BK and so on. Look at the Gov. BK sites including the state you live in site. If you are forced to file now, your tax refund will be taken from you. Look in to the means test for you state to see what chapter BK you can file.

[FreshLikeADaisy]

Tom, I filed Ch7 pro se, but I did a hell of a lot of research before I filed. I did not use a bankruptcy petition preparer or an attorney, so my biggest challenge was how to fill out the forms without a typewriter.

Anyway, you don't necessarily have to file Ch7 to stop a wage garnishment. I don't know what state you are in, but if you google "claim of exemption florida" (or whatever state, without the quotes) you should see the process. It's basically a legal response to the garnishment that does not challenge the validity of the judgement or garnishment itself (which is probably a lost cause at this point) but rather says, "Yeah, you can garnish me, but x% of my income is exempt from garnishment by state law, and so your 25% just became ___%." Many people, by filing a Claim of Exemption, can dramatically reduce or even eliminate the amount garnished. But you have to do it FAST. If you google it like I said, you should find some state or govt site that has the forms and tells you what to do.

Again, do it FAST, because once they have the $$$ you're not going to get it back: you want to stop that garnishment before they take penny one, if you can.

Try this before Ch7, because going into bk unprepared can be a nightmare. There is a book by Nolo Press about filing Ch7 pro se (yourself, without an atty) and I could not have done it without that. Buy it and read it!!! It will be your best friend. But today, now, look into the Claim of Exemption process for your state. I hope this helps. Good luck!!!

Here's the link to the book:

http://www.nolo.com/product.cfm/ObjectID/F87C0B36-D2FB-4FE2-801B76AD0792C01A/catid/462A9501-9B21-4E09-A08C5A7B8AF51A79/213/161/

[JollyGG]

I have heard nothing good about the document preperation forms.

If you must do it Pro-se. It sounds to me like you would be better off doing it yourself, or failing that hiring a paralegal to help fill out the forms (a parlegal cannot offer legal advice).

I do know that you can file a bare bones petition and then the rest has to be filed withing a certain time frame. I do know that one of our prose filers did that to avoid a judgement however I don't know who. Others have gone pro-se and and can give you plenty of advice.

If you decide to go pro-se read, read, read, read, read and read some more. Read this site, read on other site, read the nolo book and some others.

Check your state exemptions to see if you can exempt your tax return or not.

If you can exempt it you may be able to file the bare bones petition yourself and get a lawyer to help with the rest. However, lawyers don't like to jump in in the middle like that.

[TomBrady]

Thank you for your replies so far...

The problem is that I am in a catch 22 I can not afford the attorney (right now), I can barely afford the preperation firm, bk counseling, and book right now. If they start taking $600 from my check there is no way that I will be able to afford anything. Matter of fact I am spending money that was already ear marked to pay the rent in order to prevent them from taking the $600 from my check. If they take that $600 we will be in HUGE trouble. I have bought the nolo book on amazon (none of the local bookstores have it) and also purchased the right to read the book on-line so that I can start my preperation right now. I did look up the exemptions for my state (Colorado) however I did not see anything that would apply in my particular situation. The IRS has a hotline you can call to see if there is going to be an "offset" to your tax return and as of now there is none. It seems to me that my only hope is file the emergency petition to put the automatic stay into effect and then I have 15 days to file the rest of the papers. I know in my gut that I am playing with fire here but I just dont se any other options...

[aachudneymiles]

Okay so I am filing for BK on Monday (Ch 7), I have intended to do this for quite sometime however I have been unable to afford attorneys fees (2000+) so I have been trying to wait it out until my tax returns come in for the year. However yesterday my employer got a garnishment notice and this is forcing my hand. I make a pretty significant salary however we are a single income family so 25% of my "disposable" income more than $600 bi-weekly is a huge hit for us to take. My payroll people say that is going to happen on my next check (this coming Friday). Because of this I opted to self-file and paid about $200 for an online firm to prepare the documents for me. They say that they can have the forms completed and I can drive them down to the BK court on Monday and that will enact the automatic stay and then they can not garnish the wages on friday. I have a couple of concerns though:

1. It seems as though everybody going through BK has an attorney, is it very smart to self-file? I do not own a home or have any assets of real value.

2. Will the garnishment actually be stopped?

3. Is it possible for a garnishment to occur on a tax refund check?

4. Will the tax refund check be considered as part of my assests because I have filed for the refund even though I have not yet received the check?

Thank you for any opinions that you may have on these issues

While there are people who have filed by themselves, not too many people recommend doing that because of the errors that can be made and all that is involved. Many attorney's raised their fees when the new law came into effect in October 2005 due to all the extra work involved in filing either a Chapter 7 or Chapter 13. Many attorneys quit filing Bankruptcies also at that time. There are people on here who have filed pro se and probably can be of help to you but I myself would not have utilized an outside service to prepare my bankruptcy filing due to the complexities and work/time involved, especially after having gone through the process and saw what was involved. Any mistake can delay the entire process.

I am pro se and any mistake will not delay the process ( just some). When attending my 341 meeting there were Lawyers that made more mistakes and didnt inform their client of the chance of tax refund being taking and home that mite have to be sold. I do agree however you will have to speand alot of time studying and have alot of questions.. If you choose pro se its hard cant lie, if you choose a lawyer just interview a few and make sure you find the perfect one.

yes some trustees will take tax refunds some will not... mines was one who wanted mines but... I covered mines with an exemption.6000 all mines Thru my entire BK process I made 2 mistakes, I left a car out which I amended not problem and made a mistake on my homestead deed which was amended.

[aachudneymiles]

Thank you for your replies so far...

The problem is that I am in a catch 22 I can not afford the attorney (right now), I can barely afford the preperation firm, bk counseling, and book right now. If they start taking $600 from my check there is no way that I will be able to afford anything. Matter of fact I am spending money that was already ear marked to pay the rent in order to prevent them from taking the $600 from my check. If they take that $600 we will be in HUGE trouble. I have bought the nolo book on amazon (none of the local bookstores have it) and also purchased the right to read the book on-line so that I can start my preperation right now. I did look up the exemptions for my state (Colorado) however I did not see anything that would apply in my particular situation. The IRS has a hotline you can call to see if there is going to be an "offset" to your tax return and as of now there is none. It seems to me that my only hope is file the emergency petition to put the automatic stay into effect and then I have 15 days to file the rest of the papers. I know in my gut that I am playing with fire here but I just dont se any other options...

can you please send the number to the irs to see if I have an offset? thnx

[TomBrady]

can you please send the number to the irs to see if I have an offset? thnx

1.800.304.3107

[aachudneymiles]

1.800.304.3107

thnx Tom...

[FreshLikeADaisy]

Okay, here's the form:

http://www.courts.state.co.us/chs/court/forms/garnishmentforms/CRCP30.pdf

Here's another for a levy, with a partial list of exempt property in Colorado:

http://www.17thjudicialdistrict.com/writnoticeoflevad.pdf

I only had a few minutes to look and didn't find much so I can understand why you're still thinking bk.

But, please do yourself a favor: when you file bk, file the *minimum* petition (the book will tell you what that consists of) and be sure you have ALREADY completed the pre-filing credit counseling and have the certificate available to file as well. The forms you need are located at http://www.uscourts.gov/bkforms/bankruptcy_forms.html and if your handwriting is neat enough you can simply print them out and fill them out by hand. You will NOT need every form! The Nolo book will tell you exactly what you need for an "emergency" petition.

If you file this way, you will have an additional 15 days to file all the rest of your paperwork, but the automatic stay will be in effect as of the day you file. You can then give the case # to your payroll dept and to the creditor with the judgement, and they have to stop the garnishment. They will not receive official notice of your bk until your matrix is complete and filed, but the case number is enough for them to look it up.

If you do it this way, you have an addl two weeks to really concentrate on getting those forms right, which is very important so that your case doesn't get kicked out (dismissed) and you have to wait 6 months to refile. Plan on living, breathing, eating, reading and sleeping your bk for the next two or three weeks until you get all your papers in. Good luck!!!

Note: If you file without the credit counseling certificate, your case will be dismissed and you will be unable to file for another six months.

[phoenyx]

. . .
But, please do yourself a favor: when you file bk, file the *minimum* petition (the book will tell you what that consists of) and be sure you have ALREADY completed the pre-filing credit counseling and have the certificate available to file as well. The forms you need are located at http://www.uscourts.gov/bkforms/bankruptcy_forms.html and if your handwriting is neat enough you can simply print them out and fill them out by hand. You will NOT need every form! The Nolo book will tell you exactly what you need for an "emergency" petition.
. . .
Note: If you file without the credit counseling certificate, your case will be dismissed and you will be unable to file for another six months.

Since you're in a pinch to have this certificate ASAP, I looked a bit into online credit counceling. I might do mine online also, seems easier than doing it in person. It appears that http://www.cccsatl.org is able to issue a bankruptcy credit counceling certificate, after you pay $50 and go through their online course. I can't say whether this site is reputable, but it appears to be. They claim they're approved by the Executive Office for US Trustees for bankruptcy counceling.

[woohoogirl]

Since you're in a pinch to have this certificate ASAP, I looked a bit into online credit counceling. I might do mine online also, seems easier than doing it in person. It appears that http://www.cccsatl.org is able to issue a bankruptcy credit counceling certificate, after you pay $50 and go through their online course. I can't say whether this site is reputable, but it appears to be. They claim they're approved by the Executive Office for US Trustees for bankruptcy counceling.

I used them. It was the one my attorney recommended. Didn't hurt at all, other than the $50.

[TomBrady]

I did the bankruptcy consuling on www.moneymanagment.org and already have recieved the bankruptcy certificate. Now I am just concerned about the wage garnishment. I plan to drive the forms down to the bk court today, then I will get a case # and give that to my payroll department. Is there some type of form or something that I can get from the clerk showing that an automatic stay has been put into effect and to stop garnishing my wages?

[phoenyx]

I did the bankruptcy consuling on www.moneymanagment.org and already have recieved the bankruptcy certificate. Now I am just concerned about the wage garnishment. I plan to drive the forms down to the bk court today, then I will get a case # and give that to my payroll department. Is there some type of form or something that I can get from the clerk showing that an automatic stay has been put into effect and to stop garnishing my wages?

I'm not entirely sure. I would think that just providing the case number might do the trick, but it might be worth asking your payroll department what they need to not garnish your wages before you head to the court - just so if there's anything they need, you can make sure to get it.