Where to start, First thing, I have a debt for 10400.00 on a volentary repo. Last partial payment was in 6/03. I have rececvied a letter from the attorney stating they were going to file suit unless i called them. I called them and left a message for the paralegal and havent heard back. That was last week. Next, I have about 5000.00 in credit card debit on two card. I just received a letter from a collection agency on one of them. They are also about 6 months since payment. At this point I'm seriously considering bankrupcy. I make about 380.00 per week take home. I'm 24 years old. Allready bought a house and wont need a new car for a several years. I'm not worried about the house. That payment always gets made. But if they begin to garnish my wages I could have problems with it. Im just not sure where to go from here. As my understanding goes. My credits already screwed, so i might as well go ahead with the bankrucpy. Any help is greatly appericated. Thanks, CJ
i'm no expert on bankruptcy, but personally, I'd never choose to file bankruptcy unless it meant I'd lose my home, so i completely understand your reasoning. However, I think I've read somewhere here that you cannot be garnished if you make below a certain amount of money, or if there are other deductions that add up to a certain percentage of your income. (someone correct me if i've got that wrong.) you should do some searches here and read up on the garnishment laws/proceedures for your state. flyingifr (i think thats how ya spell it) has a good post about this i think. do a search. it might not be a good idea to talk to that CA/attorney on the phone. I'd get a validation letter to them right away. anyway, i wasnt much help, but at least I'm bumping this for you so that someone out there with more knowledge will give some advice. I felt so bad for you after reading your post. good luck with everything.
Im in NC. I'm really new to this stuff. I guess i just got in over my head and now Im gonna pay for it. As i said. I'm not worried about my house. As I understand it, they cant touch it, even if I file for bankrupcy. I just cant afford to have my wages garnished. Like i said I'm takin home about 380.00 a week. I did a search, but I didnt find anything specific about NC. But maybe I missed it. I even though about having my employer take me off the payroll and start 1099'n me. That way Id be self emplyoed and they couldnt get to my money. He'll do it if I ask. I just dont know what to do. And what exactly is a validation letter. I assume that that is a letter validating the debt. And my admitting that I owe the money.
. I just dont know what to do. And what exactly is a validation letter. I assume that that is a letter validating the debt. And my admitting that I owe the money. ================= Read my Links,Read my Links Read my Links !!!
Take it from someone who has been there - 1099 does not mean you can't get nailed. Really. Instead of garnishing, they take out a levy against every one of your potential clients. If they want to play hardball - and $10k is enough incentive to play fairly hard - they'll figure out your biz relationships and go after them. And there is no worse conversation in the world than explaining to past and potential future clients why they're getting these levy notices. There is a measure where you can effectively take a lien against your home, through someone that will work with you. That will secure your home in that anyone else will be next in line. There are some threads about making yourself judgement proof, do a search. Also, consider turning the tables on the $10k debt. Consider the validation route, but remember they could honor your C&D and just take you to court.
Call a Lawyer..........they consult for free. They Know the NC laws and can give you answers. DON'T make a decision THAT day...BK lawyers get paid to do a BK. Mortgage Guys get paid to do a mortgage. Thats why us mortgage guys ALWAYS think that YOU refinancing is a good idea......a good idea on how to fill MY wallet. Squeeze this guy for info and then if they are available call yer folks and see what they advise..sounds stupid? I don't care if they don't have a lick of sense they will give you a different prospective. Oh, and as for that towel that you threw in the ring....pick it back up..that's an easy habit to create and will serve you no good throughout your life. Good Luck bud.
CJ -- You mention that you already have your home... but don't mention what your equity position is. Do you have sufficient equity in your home to perhaps settle or pay-down some of these debts? Perhaps I missed it, but I didn't see your REASON for the debt you describe. Did you buy something and still have it? Was it medically related? As a Real Estate Broker and Sr. Lending Officer, I rarely counsel people to file for BK (it costs money and, as you're aware, makes your future more difficult). Even with low credit scores, you still may be able to pull some equity from your home, get those creditors off your back, and move on with your life.
Broker or Willy, Email me...yours is blocked. I'm in Texas and would like to do what you're talking about....and get these CA's off me!
If you have sufficient equity in your home you could use a HEL or HELOC to pay off your unsecured debt. Do you know the pros and cons of moving debt from unsecured to secured? |0w
The home is only 3 years old. So theres hardly any equidy in it. The 10400 is from a volentary repo on a vehicle. The other two are credit cards from differenet companys. They sold the vehicle and that was the remaining balance. I guess I ll call an attorney and see what happens. Thanks for all the help.
The home is only 3 years old. So theres hardly any equidy in it. The 10400 is from a volentary repo on a vehicle. They sold the vehicle and that was the remaining balance. The other two are credit cards from differenet companys. I guess I ll call an attorney and see what happens. Thanks for all the help.
I'm not a lawyer, you need to check it out but I believe that the only wage garnishments allowed in North Carolina, are for Child Support, Student Loans, or Back Taxes
http://www.nclabor.com/wh/garnishments.htm Your right. Ok, what now. They cant get my money. Do i need to do anything else? I guess send letters for validation. Right?
Re: Re: Re: I'm in trouble. I was thinking the same thing, but lb thinks he has to be the last post so I thought maybe it would just be ignored.
They can't garnish your wages, but they can probably put a lien on your other property if they get a judgment. The judgment will just sit there growing with interest until you sell the property, or until it is paid off. You need to read the links about validation here, as well as familiarize yourself witht he SOL laws in your state in order to fight this
