I discovered at the courthouse yesterday that an in-state attorney has finally filed suit on behalf of cap1. The amount is approximately $3000.00. I think I have been defaulted on this loan for about 18 - 24 months. I can't remember exactly. Originally I sent a DV request and they supplied verification.
I have not been served yet, and will most likely not file an answer.
I think I now have 6 - 7 judgments on my credit reports. I am currently under 25% wage garnishment. I have wage garnishments backed up in the queue. The writs are valid for 90 days, so each creditor must take their best guess as to timing of serving writs on my employer. Case files at the courthouse show garnishee response forms and creditors can access the court files, but still it is a crap-shoot on their part.
It is clear that I am bankrupt. I spent 1 1/2 hours with a financial attorney the other day. My unsecured liabilities exceed my (exempt) assets by 3-to-1. The biggest issue is still the student loans. Since I have excellent income, the attorney suggested what others have suggested. Wait it out for a few more years. My state is very strict about garnishment of no more than 25% of disposable income. I can continue to push toward the maximum of contributions to exempt retirement funds and consider BK when my income has diminished. It is incredibly unlikely that the local trustee will allow 10% - 15% of my salary to be contributed to exempt retirement accounts. We put pencil to paper and weighed potential outcomes of a 5-year BK plan versus 25% wage garnishment and continued savings into exempt accounts. In order to benefit the greatest, i do need the department of education to garnish 15% of my wages. I have already mentioned to my loan servicer that they should garnish my wages. I'm beyond the 270 day default period, but they must think a miracle will occur, LOL. He suggested that my case is NOT unique these days. In particular, the student loans are a big elephant when it comes to BK 13 and five years of BK payments with little or nothing going to student loans and perhaps only a piddling amount allowed for contributions to retirement accounts.
I have not received any written judgment exams from judgment creditors. My sense from speaking with the attorney is that once the judgment occurs, I should send a declaration of exemptions to the attorney's office, return-receipt. I should also file this in my case file. And, I should update the declaration every now-and-then. The local clerks don't like this, but I can add anything to the file I wish to add. This also puts everyone on notice should they decide to attempt to seize any exempt funds. I will also send a copy to my bank's legal department. I think the point is to provide a verifiable record that I have stated my financial situation and clearly stated my exemptions under oath (notary.) In the event my bank account is attached, I have something in writing and copies of paystubs clearly showing the garnishment. It sounds as if the local judges can turn around an illegal seizure quite quickly if they have easy access to your information. In addition, I can submit the declaration as a response to a written exam. I am most likely to ignore written requests and require the judgment creditor to force me into a hearing. I have nothing to hide. If the judgment creditor wants to throw money down a rathole, that is his/her choice.
I'm also intending to visit with a CPA and get additional financial advice. How to proceed with 75% of disposable income.
I thought I would share this as an update, and perhaps others might gain who are in a similar situation. Cheers.
I have not been served yet, and will most likely not file an answer.
I think I now have 6 - 7 judgments on my credit reports. I am currently under 25% wage garnishment. I have wage garnishments backed up in the queue. The writs are valid for 90 days, so each creditor must take their best guess as to timing of serving writs on my employer. Case files at the courthouse show garnishee response forms and creditors can access the court files, but still it is a crap-shoot on their part.
It is clear that I am bankrupt. I spent 1 1/2 hours with a financial attorney the other day. My unsecured liabilities exceed my (exempt) assets by 3-to-1. The biggest issue is still the student loans. Since I have excellent income, the attorney suggested what others have suggested. Wait it out for a few more years. My state is very strict about garnishment of no more than 25% of disposable income. I can continue to push toward the maximum of contributions to exempt retirement funds and consider BK when my income has diminished. It is incredibly unlikely that the local trustee will allow 10% - 15% of my salary to be contributed to exempt retirement accounts. We put pencil to paper and weighed potential outcomes of a 5-year BK plan versus 25% wage garnishment and continued savings into exempt accounts. In order to benefit the greatest, i do need the department of education to garnish 15% of my wages. I have already mentioned to my loan servicer that they should garnish my wages. I'm beyond the 270 day default period, but they must think a miracle will occur, LOL. He suggested that my case is NOT unique these days. In particular, the student loans are a big elephant when it comes to BK 13 and five years of BK payments with little or nothing going to student loans and perhaps only a piddling amount allowed for contributions to retirement accounts.
I have not received any written judgment exams from judgment creditors. My sense from speaking with the attorney is that once the judgment occurs, I should send a declaration of exemptions to the attorney's office, return-receipt. I should also file this in my case file. And, I should update the declaration every now-and-then. The local clerks don't like this, but I can add anything to the file I wish to add. This also puts everyone on notice should they decide to attempt to seize any exempt funds. I will also send a copy to my bank's legal department. I think the point is to provide a verifiable record that I have stated my financial situation and clearly stated my exemptions under oath (notary.) In the event my bank account is attached, I have something in writing and copies of paystubs clearly showing the garnishment. It sounds as if the local judges can turn around an illegal seizure quite quickly if they have easy access to your information. In addition, I can submit the declaration as a response to a written exam. I am most likely to ignore written requests and require the judgment creditor to force me into a hearing. I have nothing to hide. If the judgment creditor wants to throw money down a rathole, that is his/her choice.
I'm also intending to visit with a CPA and get additional financial advice. How to proceed with 75% of disposable income.
I thought I would share this as an update, and perhaps others might gain who are in a similar situation. Cheers.
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