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Ask WALLSTREETESQ Your Own Question
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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i was served a summons by a credit card company re: a closed

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i was served a summons by a credit card company re: a closed account from 2009 for the amount of $4,600. I dont have the money to pay and can only pay maybe $100 a month if i cut the amount of gas and food I use for the month. How can I make arrangements with the company w/o going to court? IF the company does not except my offer should I file for bankrupcy?

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 : This is an unfortunate situation,
WALLSTREETESQ : it is possible the settle the debt, you should contact the collections company and advise them you want to settle the debt, they should offer you 50-40% of the entire amount,
WALLSTREETESQ : A payment plan is rare,
WALLSTREETESQ : you can work with a debt counseling agency and it may be possible for you to negotiate a $100 a month payment,
WALLSTREETESQ : If your only debt is the $4600, a bankruptcyu would not be worth it,
WALLSTREETESQ : a bankruptcy may be a good option if you have more than $10,000
Customer: so even with the 500-40% off I will still have to pay the entire amout at one time?
WALLSTREETESQ : If you negotiate with the lender they will offer 50-60% off the amount, but will want the full amount,
WALLSTREETESQ : so $2000 up front to settle,
Customer: i have other debt medical bills, cable, telephone, but my other accounts car, furniture, student loan etc are current.
WALLSTREETESQ : You can advise them that you will have no choice but to file bankruptcy,
WALLSTREETESQ : and they may allow a payment plan, but will want a large sum up front.
Customer: no i dont have that with the other expenses i have. so how would i go through a debt agency?
WALLSTREETESQ : If the medical bills are high, you can file a bankruptcy and wipe out all other debts,
WALLSTREETESQ : if you cannot afford the settlement
Customer: a large sum like $1000 or will it be less
WALLSTREETESQ : $1000 might be allowed,
Customer: what will happen to my car loan, furniture, and other unsecured loans if i file for bankruptcy?
WALLSTREETESQ : in terms of a debt consolidation, I would conduct a google search, there are many companies online who handle these matters,
WALLSTREETESQ : You could keep your car, if you can make the payments,
WALLSTREETESQ : the other unsecured loans can be wiped out
WALLSTREETESQ : you could keep most of your property, if they are not too exepnsive.
Customer: one unsecured loan has a lien on my car title what will happen in that case?
WALLSTREETESQ : the lien would remain in most cases, but the debt would be discharged,
WALLSTREETESQ : it is possible to remove the lien through bankruptcy, but it is complicated, you would have to file a motion to remove the lien
Customer: oh plus i have 5 yrs of back taxes roughly 3000 per year federal 1500 state. can i include the back taxes in the bankruptcy
WALLSTREETESQ : You can include certain back taxes, such as taxes owed over 3 years, however,
WALLSTREETESQ : you have to make sure that the back taxes are listed and can be discharged in your bankruptcy,
Customer: would i have had to file the taxes first
WALLSTREETESQ : Income taxes can be discharged in bankruptcy if all of the following conditions are met, otherwise the taxes will be due at the end of the bankruptcy.They are income taxes (not payroll, or debt accumulated from fraud penalties, or trust fund taxes)The taxes were assessed at minimum 240 days before you file for bankruptcyThe taxpayer did not commit fraud or try to evade taxesThe taxes have to be due three years from the date of your bankruptcy filing (includes extensions)All tax returns were filed at least 2 years before filing for bankruptcy You must also prove to the court that you filed taxes returns for the last 4 years
Customer: i havent filed so that wont work. on can i itemize the banruptcy and only include the medical bills,other unpaid account including the credit card as long as it totals at or more than 10,000,and not include the car, furniture, and loan?
WALLSTREETESQ : Yes that is possible,
WALLSTREETESQ : Be aware, in NC you can keep the following: A total of $5,000 for clothing, household goods, furnishings, appliances, books, and the like, plus an additional $1,000 per dependent up to $4,000 total. (N.C. Gen. Stat. § 1C-1601(a)(4)). This exemption does not apply if you purchased the property within 90 days of filing bankruptcy. (N.C. Gen. Stat. § 1C-1601(d)).
Customer: ok thats goo to know. its obvious i have no money to pay an attorney. is a bankruptcy something i can do myself?
Customer: im studing to be a nurse. should i decide to file for bankruptcy will it hinder my ability to work as a nurse in general and a federal nurse specifically?
WALLSTREETESQ : yes, you can do it yourself but you can
WALLSTREETESQ : It would not hurt your profession
Customer: i can what?
Customer: how much time do i have to contact the company before they take action? will they garnish my wages?
WALLSTREETESQ : You can file bankruptcy,
WALLSTREETESQ : by yourself or use or paralegal,
WALLSTREETESQ : They would only go after, if they have sued you and got a judgment,
WALLSTREETESQ : after a judgment they will garnish,
WALLSTREETESQ : you, however it could take up 3-6 months, for them to start garnish.
Customer: hey what happened
WALLSTREETESQ : I was cut off,
Customer: ok so i have 3-6 noths to address this matter
WALLSTREETESQ : after court,
WALLSTREETESQ : it will take a few months for them to start to garnish,
WALLSTREETESQ : so if you do plan on a bankruptcy you can file at any time,
Customer: im not sure how to handle this deal with them directly, go through a debt agency or file bankruptcy
WALLSTREETESQ : and all collections will have to stop as per the law,
WALLSTREETESQ : I would call them first and see if they will accept some settlement plan,
WALLSTREETESQ : if not, go to a bankruptcy attorney in your area to see if it is worth it for you to file,
WALLSTREETESQ : if not, consider the debt relief agencies,
Customer: thank you that information helps alot. now one more thing will i be able to keep my car if i file for bankruptcy
WALLSTREETESQ : If you can make the payments to the loan company yes,
WALLSTREETESQ : also, in NC, you can keep any car that has equity under $3500
Customer: what does that mean?
WALLSTREETESQ : If the car is sold, and has equity,
WALLSTREETESQ : as long as it is under $3500 you can keep the money,
Customer: the amount of money paid on the car?
WALLSTREETESQ : if you have a car that is worth $10,000
WALLSTREETESQ : and there is a loan for $7000
WALLSTREETESQ : if you sold the car you would pocket $3000
WALLSTREETESQ : that is the equity,
WALLSTREETESQ : you can keep the equity in NC
WALLSTREETESQ : and you can keep the car, as long as you have less than $3500 in equity
Customer: ahh got it.
Customer: ok thank you for your time. youve been quite helpful.
WALLSTREETESQ : Good luck, and if you have any further questions please do not hesitate to ask.
WALLSTREETESQ : If satisfied please provide us with positive feedback.
Customer: ok thanks
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