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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2897
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Hi. I had a credit card judgment against me for $22K. I own

Resolved Question:

Hi. I had a credit card judgment against me for $22K. I own a dental office, and my office manager called today stating that the collectors are routing all the insurance money to themselves until the debt is paid-what can I do to stop this-this might put me into financial ruin, since I do not take home this money, most of it goes to overhead... I did not file bankruptcy, should I?(Michigan)
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 8 years ago.
Is this a personal debt or a corporate debt?
The creditor has the right to freeze assets, garnish wages etc.
Normally the court has a hearing to determine what a creditor can attach/garnish.
Once you file bankruptcy, then this will stop.
You should speak to a local attorney to get advice, since this is tied to the business now, and you need to still make a living.
Customer: replied 8 years ago.
This was old personal debt from college/dental school. I tried to work with them but no cooperation (it's Citibank). How do I find out what took place at the hearing? My husband was office manager and was supposed to see into this, and this is one of the main reasons of the divorce-financial neglect. Thanks.
Expert:  Terry L. replied 8 years ago.
Are you incorporated? if so, you should hire an attorney to help sort out personal/business assets, as the business is a separate entity. Bankruptcy can help, but the court will look at the value of your business to determine if you qualify for filing a chapter 7. If you are not incorporated, or an LLC, then they can go after the AR/insurance. You may be able to negotiate with the lender to avoid them from taking the business capital. Also, discuss this with your divorce attorney, so that they design that case in your best interests as well. Good luck
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