Due to medical problems and me being unable to work much the last 3 years, we find ourselves approx. $35K in debt and our house in foreclosure. About 3K in cc debt, the rest is medical. We are looking at Chapter 7.
My husband's paycheck was garnished a few weeks ago and it's really hurting us to the tune of $600 a month. ( We couldn't afford to pay the hospital $200/mo, and now we're being garnished $600-doesn't that just make sense????)
I saw a bankruptcy atty the other day, and he told me if we filed chapter 7, it would stop the garnishment.
The problem is that it costs $1300 to have him file and we don't have it (obviously).
On a positive note, we accepted an offer to sell our house yesterday and will probably get out of it with about $10K when the mortgage is pd and the foreclosure fees are taken care of.
I have 2 questions though and would appreciate the help!
1. When does the garnishment get stopped? Is it after we file, or after we retain the atty? He said we could retain them for $50 and refer the creditors to them. That would put a stop to the phone calls, but what about the garnishment?
2. Apparently, we are allowed to keep up to $39K here in OR when a house is sold. We are very fortunate that we can buy a piece of property with a home from my parents and they will accept the $10k down. My question is, when we file the bk, will they come after the property we are buying? The atty told me to make sure we draw up a contract and file it with the title company or they would consider it an illegal transfer. Any input? We have to have a home and don't want to have it taken away when it's all we have left.
My husband's paycheck was garnished a few weeks ago and it's really hurting us to the tune of $600 a month. ( We couldn't afford to pay the hospital $200/mo, and now we're being garnished $600-doesn't that just make sense????)
I saw a bankruptcy atty the other day, and he told me if we filed chapter 7, it would stop the garnishment.
The problem is that it costs $1300 to have him file and we don't have it (obviously).
On a positive note, we accepted an offer to sell our house yesterday and will probably get out of it with about $10K when the mortgage is pd and the foreclosure fees are taken care of.
I have 2 questions though and would appreciate the help!
1. When does the garnishment get stopped? Is it after we file, or after we retain the atty? He said we could retain them for $50 and refer the creditors to them. That would put a stop to the phone calls, but what about the garnishment?
2. Apparently, we are allowed to keep up to $39K here in OR when a house is sold. We are very fortunate that we can buy a piece of property with a home from my parents and they will accept the $10k down. My question is, when we file the bk, will they come after the property we are buying? The atty told me to make sure we draw up a contract and file it with the title company or they would consider it an illegal transfer. Any input? We have to have a home and don't want to have it taken away when it's all we have left.
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