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VanDLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 833
Experience:  Chapter 7 & 13
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I am an RN and total support for myself and my husband who ...

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I am an RN and total support for myself and my husband who has not worked for 1 year due to layoff...we filed a chapter 7 about 4 years ago for debt relief...we recently had our home foreclosed on.i want to find out about pay wage garnishment as it is my biggest worry and should i consider a chapter 13 . I had my credit rebuilt but now feel it is hopeless with the foreclosure to rebuild it.. can you advise.. thank you.

Chapter 13 can be filed 4 years from a prior Chapter 7 filing so you are eligible to file a Chapter 13 should you decide to do so. The Chapter 13 can be filed as long as the sale date for the home has not occured. This will stop the foreclosure action, and allow you to get back on your feet and payments caught up.

If the foreclosure goes through and the house is sold, the mortgage company will get what is called a "deficiency judgment" this is the difference in the amount owed on the note and what they got at the sale. This judgment can be executed and your wage or bank accounts garnished. The process is not a quick one, but it could happen at any time once they receive the deficiency judgment.

If you are still within the timeframe to file Chapter 13 before the sale of the house, you may be able to keep your home, if that is what you want. If you want to surrender the home, filing Chapter 13 will let you do this and will keep them from getting a deficiency judgment.

I think it is worth it for you in this situation to consult with a bankruptcy attorney right away!

VanDLaw and 5 other Bankruptcy Law Specialists are ready to help you