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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I have a bankruptcy question about a 2nd morgage. I had a forclosure

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I have a bankruptcy question about a 2nd morgage. I had a forclosure almost a year ago. I no longer have the the house.The company that did my foreclosure had given me the impresion the 2nd would be included. Come to find out i guess in the state of colorado its not included. My question is what do i have to do to save what assets i have (example) 401k, stock, bank accounts,the morgage i am sharing with another person, 2nd vehical wich are paid off and are more then ten years old, ect.,before I decide to file. I would like to know asap before they garnish my check. I am not married and I am a single mom with two kids.
Hi JACustomer,
1) Has the lender or collection agency already gone to court?
2) Is there already a judgment in place?
Customer: replied 7 years ago.

No we have not gone to court. No there is no judgement.

The lender or collection agency cannot do anything until it goes to court and then gets a judgment. This can easily take months from the time the company actually files the court papers. So, the short answer is that you can in all probability file a bankruptcy petition well in advance of this.
As a matter of fact, filing the petition will prevent the company from getting a judgment, and should result in a dismissal of any case that is started.
However, if the company did get a judgment before you filed a bankruptcy petition, they would not be able to touch your exempt assets, such as pension plans (including a 401k), $60,000 equity in the home, and $5,000 worth of motor vehicles.
However, there is no exemption for bank accounts, stock, or wages.
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