mortgage garnish wages
There are two forms of debt, and some very effective ways to eliminate them. That’s what this article is about: what secured and unsecured debts are, what bankruptcy is, and how to file to effectively discharge all your major debts. This guide defines key terms in order to make the process easier.
Secured Debts
Secured debt is money you owe for an asset. The major secured debts are your home and car, debts which, if unpaid, can lead to foreclosure or losing your car via a repossession. Secured debts are usually higher amounts, but with credit and medical debt being so common, it doesn’t always mean more money is owed, just more money owed for one asset.
Unsecured Debt
Credit cards and medical bills are unsecured debts. It does not mean creditors, those you owe money, have no means to get their money from you; it just means that your debts involve no major assets which can be taken back. If you have $20,000 in credit card or medical debt, creditors can still do things like garnish wages. However, with bankruptcy you can discharge debt and in most cases keep all your paycheck and every asset you own.
Chapter 7 Bankruptcy
This is a liquidation. The most common reason for Chapter 7 bankruptcy is to discharge medical debt. Recent studies have pointed out an inability to pay on medical debt is a leading cause of bankruptcy, which makes sense because medical bills can go from zero to $100,000 in months. Still, credit card debt is very common too. With Chapter 7 bankruptcy, you can effectively discharge these unsecured debts.
Chapter 13 Bankruptcy
Chapter 13 is less common because you have to pay some if not all the secured and unsecured debts you have. Technically, however, you have a better chance of losing no assets. If you have a lot of secured debt,such as a high mortgage, discharging these with Chapter 7 isn’t very smart. This because you are losing the debt, but also losing the property. There are many cases where you can negotiate to keep the home. The best method is still to pay these debts in affordable installments by filing for Chapter 13 bankruptcy.
Asking for Help
If you’re unsure of where to start, contact a professional bankruptcy lawyer in your state. Do not wait too long, as debts tend to grow and lead to countless problems. Filing for bankruptcy is not always the best option, but in many cases it can be the most effective.
Jacob Malewitz is a professional writer specializing in informing readers on law topics for many top sites and blogs. For Chapter 7 and 13 bankruptcy help in New York, Nevada, and California, he recommends http://www.PriceLawGroup.com.
mortgage garnish wages Questions
Upon filing bankruptcy, if I don’t reafirm an equity line can that bank force a sale or garnish wages, etc.?
I plan to reaffirm the first mortgage. Can the second mortgage holder collect in any way? How long will the lean stay on the property?
The other scenario is if the second mortgage holders note is dismissed in your bankruptcy then they can do nothing.
As far as how long it should take to remove the lien your lawyer should be able to answer this for you.
Has anyone ever had there house foreclosed on?
I just recently lost my house and the mortgage company is taking me to court to garnish my wages. Does anyone know what i can do to prevent this from happening. I heard that there are companies out there that will buy my home. Does anyone know what i can do?
First let me say I am so sorry for your circumstances. Now, let me explain what is happening so that you wil understand.
The foreclosure eliminated your interest in the home and removed your name from the title to the property. You are no longer the owner so you may not be a seller on the property. If, however, the mortgage company is pursuing a deficiency judgement, which is what it sounds like, you do have a 1 year right of redemption which means you have one year from the date of the foreclosure sale to pay any and all funds required to redeem the home. Since that includes all attorney fees and costs associated with the foreclosure action, that may not be a viable option for you as you will, in all probability, end up owing more on the property than it is worth should you do so.
The judgement the mortgage company is seeking is to recover the difference between the home’s current value and the total amount due. A judgement is two things, it is a debt and a lien. You may be able to extinguish the debt portion through bankruptcy. Once the judgement is obtained, the lender may garnish your wages and any asset accounts, such as checking and savings, that they can locate. The lien portion , however, will attach to any other propterty you may own now and in the future. You will want to check your state’s statutes, but traditionally, judgements are good for 10 years and may be renewed for another 10. In addition, the judgement is considered derogitory credit and will impact your credit scores until such time as it is satisfied. At some point in the future you are going to have to deal with this judgement in one way or another. Perhaps at some time in the future they will agree to settle with you for less than the full amount due in order to recover something rather than nothing.
It sounds to me as if bankruptcy is your only recourse in order to avoid the lender’s recovery attempts via garnishment.
Good luck.
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