Welcome. My name is Maverick. I very much enjoy what I do and I hope that you will benefit from the information or assistance that I provide.
1. Under MINN law and these facts a foreclosure by the 1st lien holder wipes out all junior liens. This means that the property is no long encumbered by those liens. It does not mean that you, as the former homeowner, no longer owe money for the 2nd mortgage.
2. You need to contact a bankruptcy litigation
lawyer who can advise of both bankruptcy and non bankruptcy options. He may be able to use the threat of a bankruptcy as a way to get the case settled for pennies on the dollar.
3. Yes, if they get a judgment, they can garnish your wages subject to some limits imposed by federal and state laws.
4. One Motor vehicle is exempt to the extent of $1,200 in value or equity.
See ArK Code 16-66-218(a)(2); Or, if you use federal exemptions
you get to keep a Motor vehicle in value up to $3,675. See 11 U.S.C. § 522 (d)(2).
Plus, under federal bankruptcy law you add $1,225 to any property you want to keep. See 11 U.S.C. § 522 (d)(5)
You can also keep the one that you are making payments on if you can keep up with the payments.
5. BK would be filed on all debts, but you can choose to reaffirm the debts that you want, such as the one on the car and keep making payment and keep driving
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