Credit, Repossession and Judgments

Will a bankruptcy hurt the credit of my cosigner?

Cosigned loans may be repaid after a Chapter 7 is completed so the cosigner’s credit is not damaged. Often the loan will be left solely in the name of the cosigner and payment arrangements are made informally between the cosigner and the person filing bankruptcy so that the payments are made on time. The bankruptcy

[ more ]

Can I lose my home, my car, or my furniture if I file bankruptcy?

Bankruptcy law allows you to keep items that are paid for such as furniture and personal belongings as long as the total resale value of those items is within the allowed amount of exempt property. This limit is $10,000.00 per person or $20,000.00 per married couple filing jointly. Additional property may be kept for specific

[ more ]

What is a default judgment?

If you fail to appear in court as ordered by subpoena to defend this action, the court will enter in a default judgment against you and in favor of the creditor.

[ more ]

What are my rights if I am sued for a debt?

If you owe a debt, your creditor can sue you for the amount owed. You have the right to be notified of the creditor’s lawsuit and to dispute the amount which the creditor claims you owe. If the creditor proves you owe the money, he will get a judgment against you for the debt amount

[ more ]

How much of my paycheck can be garnished at one time?

It depends on your state, but generally about 25% of your TOTAL NET (after tax) earnings can be garnished. But, government benefits life AFDC (Aid for Families with Dependent Children), Social Security or Veterans benefits cannot be garnished.

[ more ]

What is a garnishment?

It is a court order telling your employer to deduct a part of your wages and send it to the court to pay your creditor. It can only occur after your creditor has sued you and gotten a judgment against you, and it can happen only if your earned income after taxes is more than

[ more ]

Can the creditor repossess goods if I try to stop him?

Not without going to Court. Repossession must be peaceful. A debtor need not hand over or even open the door to the person doing the repossession, unless it is the Sheriff carrying out a court-ordered repossession, then the debtor must cooperate.

[ more ]

What is the Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act of 1978 is a federal law enacted by Congress as part of the Consumer Credit Protection Act. Its purpose is to protect consumers from harassing and abusive debt collection methods.

[ more ]

What does equity mean?

Equity is the amount of value left in your property after subtracting what you owe to any creditors who hold mortgages or other liens from the fair market value of the property. Fair Market Value is the amount the property could be sold for today, not the amount you paid for it. If nothing is

[ more ]