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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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We filed for chapter 13- right after filing my husband- was

Resolved Question:

We filed for chapter 13- right after filing my husband- was a pedestrian and was struck by a truck. We received a settlement in 02-10. Also within 6 mos of the payment set up, I had to decrease my hours of employment to part time since I had to care for my husband. For the past 18 mos we have been paying the amount set up by the trustee. We did not know that we could petition to pay less once our income dropped. Now our BR lawyer is telling us that we were to pay some of the settlement to the Trustee as well, and wants to know how we spend the money from the settlement- we have approximately $5000 left-Basically we used it to live off of since we were over $ 2600 in the hole each month due to my decrease in salary- My husband is retired. I realize these items are 2 separate and distinct issues ie in terms of what we have to pay back and the PI case. Our lawyer is going to petition to have the payments reduced but he is telling us that I may have to go into my retirement account to pay the trustee back some of the PI dollars. Here is my question- if we renig on the bankruptcy and stop payments he said the creditors would put a lien on our house - which we are still paying off - how will this affect us in the future? Is there any other reprecutions to this avenue?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 6 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

If you stop paying the plan, the chapter 13 would be dismissed, and you creditors who were not paid can come after your assets.

WALLSTREETESQ :

However, if you do have your case dismissed, consider refiling a chapter 13 in 6 months or so, and have your payments reduced as per your income level. You can refile a chapter 13, after it is dismissed.

WALLSTREETESQ :

I would not use the retirement money for a bankruptcy case, I would have your attorney file a motion to dismiss, and refile later.

Customer:

What happens if there are no assets? And what is considered an asset?

Customer:

Sorry I was not done sending you the rest of this question. We still owe 12 more years on our home. The only other asset is our cars- a 2008 -paid for and a 2007 that is still encumbered by the bank. Other than that there is really nothing else left. in terms of the PI - we had to use it to live since we were in the hole every month because my income dropped.

WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.
Customer:

What happens if there are no assets? And what is considered an asset?</pCustomer:

Sorry I was not done sending you the rest of this question. We still owe 12 more years on our home. The only other asset is our cars- a 2008 -paid for and a 2007 that is still encumbered by the bank. Other than that there is really nothing else left. in terms of the PI - we had to use it to live since we were in the hole every month because my income dropped.

Expert:  WALLSTREETESQ replied 6 years ago.
In terms of assets, that is real estate, cars, bank accounts, anything in your name that can be taken to be sold or liened by a creditor.

If you have no other assets, you should not worry too much about creditors, if you can pay your mortgage, than your home will be protected, and if you pay the car loans you would be able to keep them as well.
Customer: replied 6 years ago.

In terms of bank accounts.. is there a particular amount you can have in there ie enough to pay your expemses each month?

Expert:  WALLSTREETESQ replied 6 years ago.
It will depend on your State exemption, as well as the source of the money, if it is from social security, the account cannot be garnished, if you tell me what State you are in I will see the exemption amount.
Customer: replied 6 years ago.
We live in pa but i work in nj
Expert:  WALLSTREETESQ replied 6 years ago.
PA has limited exemptions, only $300 of any property, including cash, real property, securities, or proceeds from sale of exempt property
42 Pa. Cons. Stat. Ann. § 8123
Customer: replied 6 years ago.
I do not understand what you mean. Are you saying they could only get up to 300 $ and what about the fact that I work in NJ? Do they garnish wages in NJ?
Expert:  WALLSTREETESQ replied 6 years ago.
No, only $300 would be exempt from collections. They would be able to garnish wages in NJ, if they have a judgment.

Customer: replied 6 years ago.
Is there a dollar amount they could garnish?
Expert:  WALLSTREETESQ replied 6 years ago.
In NJ, the law states Garnishment may not exceed 10% of gross salary. Monies may not be withheld if disposable weekly earnings are less than $154.50 per week or $309.00.00 every 2 weeks
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