A little jealous

[mountanddo]

For those of you contemplating whether or not to file C-7 or C-13 please be sure to do all your research first before you make up your mind.

When I filed C-7 seven years ago, I had a good job, no medical issues and was just coming out of a divorce and closing a business. Because I basically got nothing in the divorce and was unemployed for a year I used my cash advances to live and furnish my apartment. I thought life was pretty good then.

Fast forward to today...lost my job due to medical issues and stupidly put the bills on my CC. I have been working very low paying jobs and now am working my THIRD temporary job who says they hope to hire me *the other two said the same thing*. I have no health insurance and have 20k in CC debt. My DMI for my C-13 is $150 but in reality it's really -alot if I put in all the allowable expenses. For now I live without insurance and without a reliable car and living paycheck to paycheck with not a whole lot left over at the end. I am in the process of being sued and am still waiting for the state to send me a copy of my tax return for 2010 before I can file. The attorney told me that they could garnish my bank account 45 days after the supeana and I was served on August 29th so that date is coming up soon. Every time I get in my car I am waiting for the inevitable. I have sent out hundreds of resumes with no responses. Last week I was sick with a very bad virus and only had 16 hours on my paycheck so of course I will be playing catch up for the next couple of months.

I wish I had tried to work out some deal with the creditors seven years ago rather than filing a C-7 then because now I am stuck. I can't afford to have my wages garnished. I am lucky that the attorney said that I could file with my temp job as I have been working most of the time in the last year. I should feel grateful but it seems that for every step forward I am thrown back a few blocks!

So for those of you thinking about filing that C-7 be sure that you look forward 8 years and determine whether or not your situation could get worse because that is what I didn't do. I know a lot of things we can't control. I didn't see things getting worse and didn't plan for that which is why I am in the situation I'm in now.

[keepsmiling]

Are you certain you make enough to be garnished? Isn't there a minimum you need to make in most states? I am sure your attorney discussed this but just double checking.

On another tack... some here have had success stalling with arbitration. Might be worth looking at, perhaps you could buy enough time to do another 7?

[mountanddo]

In MN they can garnish 25%, I don't believe it goes by how much you make but I'm pretty sure I make over that minimum if there is one.

I thought about trying to stall but this is only one credit card suing me and I can't file until next September. I have 3 more that will more than likely start that process as it's been a year since I stopped paying on all of them.

On a good note, because I make under the median I am able to file and only be in a C-13 for 3 years instead of 5. Hopefully I will get an offer of employment from my present temp job after I file. I should get a pretty good bump in pay + benefits but I'm told that won't push me into a 5 year plan if I've already been approved for a 3 year plan. Hopefully that is true. Even if it raises my DMI I will still only have to be in it for 3 years.

I work in HR so hiring people and explaining all the great benefits they get has really taken a toll on me. Being happy for people and upbeat has been hard when all I really want is a permanant position! Plus, two of the companies that said they might have a position have awesome benefits, present one included. It's a little difficult to hear sometimes when people complain

[keepsmiling]

I bet it is!

You might want to double check the math. A while back someone posted that was being garnished for way more than legal.

From your AG's site:
Starting the Garnishment Process. If you don’t pay a bill, creditors can garnish your wages by suing you, then garnishing your wages or bank accounts based either on the judgment they get in court or on the default judgment they could get if you do not respond to the lawsuit. Thus, if you get a "complaint" (the document that begins a lawsuit), you should contact a lawyer to help you respond to the allegations. If you negotiate a payment plan with the creditor, be sure to put it in writing.
Protections from Garnishment. Generally, creditors cannot garnish more than 25% of your net wages. Creditors also cannot take any of your wages for six (6) months after you have received public assistance based on need. This includes the Minnesota Family Investment Program (MFIP), Emergency Assistance (EA), Work First Program, Medical Assistance (MA), General Assistance (GA), General Assistance Medical Care (GAMC), Emergency General Assistance (EGA), Supplemental Security Income (SSI) and Energy Assistance (EA). If you deposit your public assistance in a bank account, creditors cannot garnish your account for 60 days. Finally, creditors cannot take your home, or car, furniture, employee benefits or insurance proceeds up to certain values.
Claiming an "Exemption." If you received public assistance, you may claim that your wages are "exempt" from garnishment by promptly returning to the creditor the "Garnishment Exemption Notice and Notice of Intent to Garnish," which is a form the creditor must send to you at least 10 days before garnishment begins. To claim that funds in your bank account are "exempt," you should sign and return within 14 days to the bank (and the creditor’s attorney) the "Exemption Notice," which is a form the bank sends to you when they receive a Garnishment Summons from the creditor to tap your account.
Length and Amount of Garnishment. If you don’t claim any exemptions, creditors can take part of your paycheck for the next 70 days. Excluding child support, you get to keep either 75% of your net wages or 40 times the minimum wage, whichever is greater.

[jacko]

The 25% weekly garnishment does not kick in unless you make more than $290 per week. So up to $290 weekly earnings is exempt. If I am wrong please advise.

Are you certain you make enough to be garnished? Isn't there a minimum you need to make in most states? I am sure your attorney discussed this but just double checking.

On another tack... some here have had success stalling with arbitration. Might be worth looking at, perhaps you could buy enough time to do another 7?

[keepsmiling]

^that's what I'm sayin
40 x minimum wage, whatever that is nowadays

[mountanddo]

I make more than that so the 25% will be garnished.

[IHateChase]

any public assistance last six months?

[AngelinaCatHub]

I make more than that so the 25% will be garnished.

Yes but it will go to what may have to be paid in an agreement with the creditor. It would be easier to make a payment plan with them for less than a hundred bucks a month. Asking them or even ask the Judge at your answer hearing if he could order a mediation and that you would pay through the mediation. The Judge may order to have interest frozen and/or the penalties reduced. Not a thing wrong with asking. Only one answer if you do not. 'Hub

[IHateChase]

I agree, try all alternatives first.
And not to beat a dead horse, but it may not be a full 25%. Especially if you even qualified for assistance with utilities, as we do.
Also try reading up on playing the arbitration card. Fascinating stuff. I think Treehugger has been thru it? Tree are you out there? a few others as well. It bought a lot of time and costs much less than a 13. It could be months before you even get the court date. Brings you that much closer to getting your 7.

[mountanddo]

I would love to be able to do this but not only is Capital One suing me, Barkley bank has just started calling eveyday and have asked for money as well. As my C-13 will be $150 dealing with trying to hold off two creditors and possibly the two more before I am eligible for a C-7 doesn't look great. Unfortunately I signed a contract with both my cellphone and cable and it isn't up for a year. After the year is up I will be able to drastically reduce these expenses so the plan will be manageable. It's only a year right? I could let both the cable and cellphone go but I'm just not willing to do that if I don't absolutely have to.

I am only waiting for my 2010 tax return from the state before I can file. I have my counseling done, my money order for the filing fee and all the other documents. I just really want to get this information before Capital One gets a judgement and garnishes my wages as just one or two months would really put me in a bind.

[IamOld]

mountan, I can share with you about Barcleys' - I went about...well since - well around April to now with not paying Barclay's - nothing more than phone calls and 50% settlement offers...

How long till your court date with Cap one?

[mountanddo]

I stopped paying all my CC one year ago. Barkley stopped calling me but now "milton" has become my best friend.

I don't have a court date, the summons didn't even have a court number or date on it. I was served at my apartment. My attorney said that they could seize my bank account 45 days after they served the summons and they did that on August 29th. Do you actually have to go to court before they can garnish your wages? Since the 45 days is close I am thinking I should cancel my direct deposit and not use my bank account until I am filed? I really just want to be able to file, pay the $150/month and not have to worry that someone is going to be freezing my money and then trying to get it back.

[msm859]

I stopped paying all my CC one year ago. Barkley stopped calling me but now "milton" has become my best friend.

I don't have a court date, the summons didn't even have a court number or date on it. I was served at my apartment. My attorney said that they could seize my bank account 45 days after they served the summons and they did that on August 29th. Do you actually have to go to court before they can garnish your wages? Since the 45 days is close I am thinking I should cancel my direct deposit and not use my bank account until I am filed? I really just want to be able to file, pay the $150/month and not have to worry that someone is going to be freezing my money and then trying to get it back.

You need to talk to your attorney if you were just served. They cannot garnish your wages until they get a Judgment. It should be pretty easy to delay that for 1 year.

[mountanddo]

It's really not easy though people keep saying this. I did not respond to the summons because it cost $330 to file a response and I just didn't have it. Even if I did respond my attorney said it wouldn't matter as I don't have any reason why I shouldn't of paid the CC. So I will most likely get a default judgement. I only make $500/week take home so if they garnish my wages 25% then that leaves very little left to pay rent and other expenses. Also, because I work temporary if I am sick or there is a holiday I don't get paid for it. I don't have anyone to borrow money from so if I don't work I don't have the money. I have fibromyalgia so I am also trying to deal with this without medical insurance. I make too much money for state health care though I could get it for $179. This is all my DMI which is supposed to go to the C-13 payment. Honestly, I would be in a much better position if I worked a minumum wage job

I am in the position where I make just enough to survive but too much to get assistance. Any money that they take from me brings me one step closer to living in my car which actually would probably then qualify me for assistance. Go figure.

For those of you that are able to plan for your banckrupcy and purchase new cars and stock up on household items for 6 months, you should consider yourself very lucky. Not everyone files bankrupcy because they are just insolvent, some people file because they are actually broke.