Desperately needing advise. Possible $2 million fine>>>>

[trader19]

Okay guys... here is the quick and dirty.

First... have about $150,000 in debt... filed chapter 7 and have 341 meeting in July.

However, and I preface this that I am limited as to what I am allowed to say for legal reasons, but it is my understanding that the Securities and Exchange Commission may be seeking about 2 million in disgorgement and fines against me and are basing it on fraud. I am 99.99% that this is not dischargable in C7 due to it being called fraud.

I am no longer involved in the industry and actually now a public school teacher making $50,000 a year. The SEC will likely seek a default judgement since I do not have the financial means to defend it. Once they get the default judgement, they may or may not try to collect. I live in NJ and I see the maximum they can collect via wage garnishment is 25% of disposable income.

My question is... will it be likely that they awarded the full 25%? I am debating whether it is even worth it to continue my career as a teacher. Getting whacked for 25% of my salary would not make it worthwhile. I am married with 2 kids and we have bills we need to pay.

How is the amount of wage garnishment collected actually determined?

Any other suggestions of how to creatively get around this judgement would be appreciated.

Thanks in advance.

[AngelinaCat]

Did you use an attorney to file, and does he/she know about this?

How long have you been separated from this 'industry'? Were you involved with the finances in any way? If you were simply a regular employee, such as a receptionist, I wouldn't think you would have anything to worry about. But this is WAY out of my realm of experience. Hopefully, one of our posters, who is an attorney, will see this...

[LadyInTheRed]

Don't quit your job unless you have a better offer! Having 75% of your salary is better than no salary. If you google "New Jersey Wage Garnishment" I am sure you'll find information on how the 25% is calculated. Your BK attorney may also be able to explain it to you.

You really need to get an attorney to represent you against the SEC. That's too big an amount to allow a default judgement. Consult with some attorneys and see what you can work out. Also, might the company you worked for have an obligation to defend you? Or maybe they have insurance that would cover you. Do you have family members who can lend you money for attorney fees? If nothing else, and as a last resort, you should attempt to represent yourself.

You say that the SEC MAY pursue you. Don't panic until something actually happens.

[AngelinaCat]

I edited your post into paragraphs to make it easier to read.

If you can provide a few more details, we may be able to advise you better.

My DH, AngelinaCatHub and I were hit with an Adversary Proceeding (AP) in which the plaintiff was also claiming fraud against us. This stemmed from a long-standing feud with an Enemy that cyber-bullied and cyber-stalked us for nine years. This creature also brought numerous frivolous lawsuits against us designed to drain us financially--which he accomplished. He also wanted to have us divorced and in prison. However, God had other ideas....

My point is that there are ways to defend against and stalemate such *krapp*. But, we need a few more details...

[despritfreya]

My question is... will it be likely that they awarded the full 25%? I am debating whether it is even worth it to continue my career as a teacher. Getting whacked for 25% of my salary would not make it worthwhile. I am married with 2 kids and we have bills we need to pay.

So, you are willing to give up 75% of your needed income (needed to support the family and pay those bills) because it has been reduced by 25%. You do realize that 75% is better than 0%? You also do realize that if and when you get another job, the judgment creditor will surely follow? So, unless you can find gainful employment that nets more than that 75% and pays you "under the table" quitting makes little sense.

You would have to research this to see if you have such a provision in NJ collection statutes. . . In Arizona the debtor can petition the state court to reduce the garnishment from 25% down to no less than 15%. If NJ has a similar provision the garnishment might be less of a bitter pill to swallow.

And. . . if the SEC gets a judgment against you, it will be non-dischargeable under 11 USC 523(a)(19) which specifically deals with securities issues.

Des.

[sailing2013]

You facing a $2M fine...and you're seeking advice on this forum, and not professionally? Bwahaha. This forum is awesome--and the posters are incredibly detailed and helpful--but, for a fine of the magnitude you're discussing, please seek professional advice!

[tobee43]

not withstanding and agreeing with sailing on this issue, i must remind many of the saying:

the higher the climb the harder the fall.

i know many that made and i mean millions and millions driving bentleys and flying in private jets they rented. now they have nothing and don't know or understand how the day in and the day out process of daily living goes. many well educated and very successful in business yet can't tie their own shoes. for disclosure reasons as well, we have a client now like this, and it's really a sad situation for some of these people that once had so much. at first i really felt basically the same as sailing and with some i still feel that way, others just will never get it no matter what, and it's sad.

now trade19 your educated, once was a high roller and you need to get professional legal advise asap. you will not get out of this debt unless you pack up your family and leave the country and live elsewhere. as pointed out this debt will not be discharged, however, your atty should be able to hopefully settle the situation for you, maybe work out payment plans without garnishes. there is much you can do to help yourself and the first step is get an atty. if your a teacher in NJ, one of the ONLY states that still has collective bargaining if i recall, call a union rep and get an atty referral. i wish you the best of luck, this is a mess, but you need to focus now on doing the right thing.