I'm new and not sure where to post different types of queries, etc. Here's the short version of my story. I have good income, but declining. I've considered Chapter 13 BK, but want to explore every other option first. I have not been able to pay on several of my unsecured obligations. I'm trying to work with the local creditors as they have the quickest route to the small claims court and justice court (Oregon). I let one slip by but made a tentative agreement with them. I'm working with CitiBank and BOFA/MBNA to see what can be done. So far, most folks have been cordial. I'm not concerned with my credit as this point, and I'm more concerned with the ramifications of "not paying." I have no assets other than wages. In my state wages can be garnished at 25% of net. By the way, I can live like a king on 75% of my takehome pay (he, he). I do suspect that I will have to live with a garnishment or two (or many) for a while. My first question is: I have two financed vehicles, both of which I owe more than they are worth. Should a creditor get a judgment and "second" lien, can they take the vehicles and attempt to sell them even when they clearly could not even satisfy the first lienholder? More important, what are the chances they would even attempt this? I know all about the laws related to collections, garnishments, exemptions, etc for my state. My very simple household furnishings, equiptment required in my trade, etc. are all safe under the state exemptions form seizure. I have been studying my situtation intently for a couple of months. Under the new chapter 13 bankruptcy laws, I will fair far worse by filing than if I simply let creditors garnish my wages. I'm not concerned about losing my job as I am a public employee and would not be fired by an entity that is required to abide by their own state laws. I am 51 years old with a significant amount of money in pension funds, 403's and other retirement type accounts. These are perfectly safe from any creditor/DC. My second question is: How long can one go on with judgments and garnishments? I will fight every step of the way, but realistically, I will have to live with some garnishments. Does anyone here have experience with multiple judgments and garnishments? This is somewhat comical in my state, as even if a creditor gets a garnishment, it has to be renewed if the garnishment does not satisfy the judgment within 90 days. I guessing my creditors realize this and that is why they "appear" to be willing to work with me in these intial stages.
I'll presume you do not qualify for Chapter 7, lol. Seriously, Citibank will work with you every step of the way and given that fact, you would be wise to work with them accordingly. MBNA, now Bank of America, will settle for roughly 50 cents on the dollar even before charge-off. Take it . . . Otherwise, sit back and see what comes down the pike via litigation. With that said, invoke every state and federal protection you can in the mean time in hopes of accuring off-sets. Dispute tradelines, dispute charges directly with creditors in writing, etc., etc. Regarding garnishment, I cannot speak to that inasmuch as I do not possess a Oregon bar license and doing so absent that would constitute UPL. Towards that end, consider consulting a consumer attorney in your jurisdiction.
I can only dream about a chapter 7. I am guessing that in the near future there will be plenty o ffolks like me who may very well have to live with long-term possibility of wage garnishments to avoid a forced living after calculating their "disposable" income using the new BK forms and schedules. Citi has been great to work with. In fact, when I had to miss a partial payment last month under a year plan we set up, they went out of their way to stop the ACH against my banl account within 24 hours of it being applied. BOFA/MBNA have only called me once to discuss what we might work out in the near future. We are discussing the possibility of a five-year payoff plan at 1 - 2%. I would hate to take the 50% payoff (can't afford it anyway) and then get stuck with taxes (I'm not insolvent). I have two credit union visas totalling $13K and these might be problematic. I'm carrying $70K in unsecured and CC debt with another $70K in student loans (ran out of forebearances, deferments, etc). I'm up-the-creek looking for a paddle. I've met with Bk attorneys while exploring my options and they were no pressure and informative. I have most of the state consumer revised statutes book-marked. I had not thought of a consumer attorney. It might be worth my time to buy some of his/her time. Can one buy the time of an attorney to ask questions, or does one need to retain?
