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 ]Frequently Asked Questions
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 ]Does my personal bankruptcy release my co-signer or guarantor of a debt?
Chapter 7 does not protect a person who cosigns a debt with you. To protect the cosigner you must repay the debt after the Chapter 7 bankruptcy is completed. Chapter 13 includes protection for a cosigner if the Chapter 13 repayment plan provides full repayment of the cosigned loan.
[ more ]Are there any debts which I cannot discharge through bankruptcy?
Certain types of debts are not subject to discharge. Debts arising from alimony or child support, debts for fines or restitution for a crime, and a claim for personal injury caused by drunk driving are not discharged under bankruptcy. Most taxes and student loans also are not discharged. Under a Chapter 7 the following debts
[ more ]What happens to a garnishment or a creditor’s lawsuit once I file bankruptcy?
Immediately upon the filing of the bankruptcy petition, all creditors must stop any collections against you. The Bankruptcy Court issues what is called an “automatic stay. ” This means that by order of the Bankruptcy Court all garnishments must cease and creditors may not take any further action on any lawsuit pending against you. The
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