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    Statute of Limitations Question

    I live in Georgia and expect to have to live with a series of credit card lawsuits, judgments and wage garnishments for the next few years.

    Reason being is that I just got a new job before my BK so I no longer qualify for a Chapter 7 - and a Chapter 13 seems like it has no value for someone like me with no assets.

    I know that the statutes of limitations in Georgia is as follows:

    A - Credit card debts - 4 years
    B - Civil judgments - 7 years
    C - Judgments can NOT be renewed

    So - my questions are this:

    In my worst-case scenario - a creditor could win a judgment award after 3 years and 11 months and have that hanging over my head for possible wage garnishment and asset seizure for 7 more years (or until the judgment is paid in full).

    IS THIS ASSUMPTION CORRECT?
    Over Median Income - 10/04/10--Filed Pro Se Chap 7/ No Assets 11/10/10--341 Held 01/18/11-- No Distribution/No Funds 01/19/11--Not subject to dismissal under 521(i)(1) AND --Reaffirmation Hearing Held = APPROVED 02/10/11--Discharged

    #2
    I believe you are accurate. Was there no way to stave off the raise until you filed? 'Hub
    If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

    Comment


      #3
      I cannot push off my start date until after a 341 hearing - and I would have to disclose my new job and income at that meeting.

      Funny - if I had only filed 60 days ago this would have been a non-issue - but I put all energy I had into getting a new job with more income.

      I have a ton of unsecured debt ($185k) - and gave up trying to make minimum payments (over $3,500 per month.)

      I figure they will all end up suing and driving for wage garnishment. They will eventually find out where my new employer is - even though in the short run that may be difficult as they are headquartered in another state and have no offices in my state.

      I actually hope they all get judgments quickly - and then I can go to the ones in the "back of the line" and work out settlements. I figure once they realize that the may never get paid within the 7 year SOL - they might be willing to settle.

      I am not going to have a checking account anymore - and keep all cash either in my wife's name only and/or prepaid debit cards. She is NOT on any of my debts.

      We will build a budget around a 25% garnishment - and simply try and save the rest.

      I looked at Chapter 13 and for the life of me cannot see any benefits. With teenagers - the "IRS-mandated budgets" for food, gas, clothing, etc. are not realistic and - even worse - not indexed for any price increases due to inflation.

      I think we are heading into a repeat of the 1970s and prices will be going up over the next 5 years. If that happens - why sign up for a Chapter 13 plan that will not take into account any price changes? Seems like a no brainer to stay away from Chapter 13.
      Over Median Income - 10/04/10--Filed Pro Se Chap 7/ No Assets 11/10/10--341 Held 01/18/11-- No Distribution/No Funds 01/19/11--Not subject to dismissal under 521(i)(1) AND --Reaffirmation Hearing Held = APPROVED 02/10/11--Discharged

      Comment


        #4
        I think you are looking at this too pessimistically. That is a lot of debt. Will you be making big money? Does your company have a 401K? Do you have a lawyer? It is my gut feeling that you just don’t want any judgments. Can you start paying some ‘token’ payments to keep the “Wolf from the door?” If you are making much more money, attempt to talk a deal with some of those getting close to legal action. If they accept a partial payment that puts the clock more on your side. Keep us posted. ‘Hub
        If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

        Comment


          #5
          Token payments - from what I understand - restart the SOL clock.

          I MIGHT be making big money (via commissions). If I do - then I can offer settlements. Right now - I am flat broke.

          I will be putting money into the 401k as that is protected.

          I have a BK lawyer who told me I would qualify for a Chapter 7 - and now thinks I will not and is offering a Chapter 13. I think I just wasted $1,000 on retainer with him - and am not interested in finding another lawyer who will take my $$$, as we are living paycheck to paycheck.

          All of my accounts are with in-state lawyers - and I figure it is just a matter of time until ALL OF THEM file lawsuits and arbitration hearings take place. I already have one summons (no court date yet) and one arbitration notice. These alone cover $45k.

          My hope: To "settle" with them one by one. My nightmare: They all get judgments.

          Even with the nightmare - if I am blessed to make more money - I can start socking some away and offer settlements to those near the back of the judgment line. The ones at the back may not get paid for 5+ years - and may never get paid.

          There is also always the risk/negotiation point of Chapter 7 to all of them - that can be used as leverage with them at any time.
          Over Median Income - 10/04/10--Filed Pro Se Chap 7/ No Assets 11/10/10--341 Held 01/18/11-- No Distribution/No Funds 01/19/11--Not subject to dismissal under 521(i)(1) AND --Reaffirmation Hearing Held = APPROVED 02/10/11--Discharged

          Comment


            #6
            If your new job is commission based, I would think that would be to your benefit in a bk 7. I would go get a couple of free consults...FREE consults. The court uses the PRIOR 6 months of income for your filing. Who knows, your first couple of months at a new job may not bump your income up that much. I would bulldog this, and make damn sure a ch7 is out.

            Comment


              #7
              Originally posted by gman View Post
              Token payments - from what I understand - restart the SOL clock. Good point, but if they are going to hit you before bk, what's the difference?

              I MIGHT be making big money (via commissions). If I do - then I can offer settlements. Right now - I am flat broke. Never count on the 'come'. You are flat broke now ergo, bk. I would hit up that lawyer to work out a way to 7. Then you are done. In any case, filing 7 or 13 will get you a stay to think. You could file 13 and amend it to 7 later.

              I will be putting money into the 401k as that is protected. NEVER raid it. Best bargain of your life.

              I have a BK lawyer who told me I would qualify for a Chapter 7 - and now thinks I will not and is offering a Chapter 13. I think I just wasted $1,000 on retainer with him - and am not interested in finding another lawyer who will take my $$$, as we are living paycheck to paycheck. Don't let good money go that easy. Explain to him your desire to 7 and only 7. Is it possible to (this sounds stupid) ask your employer to lower your income and give you a bonus later. I'm not talking about fraud, but a legal 'work around'.

              All of my accounts are with in-state lawyers - and I figure it is just a matter of time until ALL OF THEM file lawsuits and arbitration hearings take place. I already have one summons (no court date yet) and one arbitration notice. These alone cover $45k. Always respond to a summons. Don't give anyone a default judgment.

              My hope: To "settle" with them one by one. My nightmare: They all get judgments. It would be mine too. Let's cooly think about alternatives. You have found a good forum for this.

              Even with the nightmare - if I am blessed to make more money - I can start socking some away and offer settlements to those near the back of the judgment line. The ones at the back may not get paid for 5+ years - and may never get paid. Then why bother? They will still be bugging you.

              There is also always the risk/negotiation point of Chapter 7 to all of them - that can be used as leverage with them at any time.I think you are beyond that bargain point. There has got to be a work around even if you are an asset case. I was and have to pay back for my own stuff.
              'Hub
              If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

              Comment


                #8
                Originally posted by GreenInkOnPaper View Post
                If your new job is commission based, I would think that would be to your benefit in a bk 7. I would go get a couple of free consults...FREE consults. The court uses the PRIOR 6 months of income for your filing. Who knows, your first couple of months at a new job may not bump your income up that much. I would bulldog this, and make damn sure a ch7 is out.
                ABSOLUTELY
                If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

                Comment


                  #9
                  Hmmmm...

                  Your idea about postponing income for a few months has me thinking.....

                  Has anyone every tried this? I could push off some income until after 1/1/2009 and still make ends meet around my household.
                  Over Median Income - 10/04/10--Filed Pro Se Chap 7/ No Assets 11/10/10--341 Held 01/18/11-- No Distribution/No Funds 01/19/11--Not subject to dismissal under 521(i)(1) AND --Reaffirmation Hearing Held = APPROVED 02/10/11--Discharged

                  Comment


                    #10
                    Originally posted by gman View Post
                    Hmmmm...

                    Your idea about postponing income for a few months has me thinking.....

                    Has anyone every tried this? I could push off some income until after 1/1/2009 and still make ends meet around my household.
                    If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

                    Comment


                      #11
                      Originally posted by gman View Post
                      Hmmmm...

                      Your idea about postponing income for a few months has me thinking.....

                      Has anyone every tried this? I could push off some income until after 1/1/2009 and still make ends meet around my household.
                      I know that I can defer my income. Ask your new employer and tell them you are doing some tax planning.
                      Very fortunate in the grand scheme of things but have learned my lesson.

                      Filed 12/15/08, 341 1/12/09, Cont to 2/12/09, cont to 3/12/09, cont to 4/15/09, cont to 5/11/09, cont to 6/02/09. Discharged 9/16/09, Closed 10/23/09

                      Comment


                        #12
                        Originally posted by Lajazz947 View Post
                        I know that I can defer my income. Ask your new employer and tell them you are doing some tax planning.
                        GOOD IDEA 'Jazz
                        If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

                        Comment


                          #13
                          I have to agree with the others...WIth that much debt and judgements looming, you will be MUCH better off FIGHTING for that Chapter 7. The BK attorney is likely trying to push you towards a 13 so that he can charge you more fees (13's cost more than 7's). Be adamant about a chapter 7, defer your income if necessary. Get that Chapter 7.

                          With a chapter 7 you will pay your lawyer, most likely be declared a no asset case, and be done in a few MONTHS. If you go the negotiation, judgement, garnishment route, then you will be dealing with this for 10+ years...any debts you don't pay will NEVER go away...they may not be able to get a garnishment, but they will call you, harrass you, relist it on your credit report. It will just be a giant PITA...

                          My recommendation: Get it over and done with now. Insist on a chapter 7. Get free consultations with other lawyers if necessary. Insist on a chapter 7, talk to your employer to do some "tax planning" income deferment, and make your situation work for a chapter 7.

                          If you must do a chapter 13, there are benefits to chapter 13 (even if you have no real assets). They are:
                          Creditors can't call and harass you...they can't even send you a letter.
                          you make one monthly payment to one person to cover all your debts.
                          all debt in chapter 13 is 0% interest
                          If you file a 13 before a judgement, you avoid having to pay attorney's fees and court costs (which will be added to your debt upon securing a judgement).

                          If you must go the Chapter 13 route, definitely get some free consultations with several attorney's and find one that can work out a chapter 13 plan that you can work with.
                          Oct 9, 2007 - Filed my Chapter 13! Scores: 527/509/528
                          Jan 1, 2009 - Sent in my last payment! Scores: 635/628/585!
                          Feb 11, 2009 - DISCHARGED & CLOSED!
                          I AM NOT A LAWYER. ANYTHING I SAY IS NOT LEGAL ADVICE.

                          Comment


                            #14
                            Originally posted by gman View Post
                            Hmmmm...

                            Your idea about postponing income for a few months has me thinking.....

                            Has anyone every tried this? I could push off some income until after 1/1/2009 and still make ends meet around my household.
                            This is classic Bankruptcy Planning, which is not illegal at all. It's a strategy as Bankruptcy is... wait for it... wait for it... a technical proceeding. (I love that phrase)

                            Careful planning... including income deferral, can be very advantageous. Remember, we're not talking about hiding assets... but using the technical nature of the code to Plan your bankruptcy. Many people do it. i wish that I did!
                            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                            Status: (Auto) Discharged and Closed! 5/10
                            Visit My BKForum Blog: justbroke's Blog

                            Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

                            Comment

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