Making bankruptcy more affordable part 2
I gave one suggestion a couple of days ago about how to make Chapter 7 bankruptcy more affordable by paying court filing fees post-petition. The dilemma still remains that attorney fees in the typical Chapter 7 must be paid in advance. For folks whose wages are being garnished this creates a real conundrum. You are bringing home less money because a huge chunk of your pay is being seized, but you cannot stop the garnishment without filing the bankruptcy.
One option to explore arises if you are garnished more than $600.00 by any one creditor in the 90 days prior to filing. This creates a preference. If your attorney properly exempts those funds, then you can pursue recovering the money. If the expected return is sufficient, you might be able to assign the right to recover those garnished funds to someone else who, in exchange, covers your attorney fees. Your attorney may even be willing to do this, though not likely for the entire fee because there is some risk that the funds will not be readily surrendered.
No comments yet.
-
Recent
- New Deadlines for Filing Tax Returns as Required by Section 1308
- Late Secured Claim Disallowed Under 12/01/2017 Amended Rules
- Increases in Prime Rate of Interest and in EDKY Trustee’s Fee
- Delinquent Property Taxes and the EDKY Chapter 13 Plan
- Chapter 7 and Student Loans
- Bitcoin and Bankruptcy
- The New Chapter 13 Plan in Operation: The Good, The Bad, and The Ugly
- Prime Rate; Bar Dates; & Other New Plan-Related Topics
- Trends and New Developments: Learning from Court Orders
- Summary of Changes to Federal and Local Rules and Forms Eff. Dec. 1, 2017
- Plan Payments by Payroll Deduction
- Claims Based on Time-Barred Debts in Kentucky
-
Links
-
Archives
- January 2019 (1)
- November 2018 (1)
- October 2018 (1)
- May 2018 (1)
- January 2018 (3)
- December 2017 (2)
- November 2017 (1)
- September 2017 (2)
- July 2017 (1)
- June 2017 (1)
- May 2017 (3)
- April 2017 (3)
-
Categories
- Adoption
- Alternate Debt Relief
- attorney fees
- Bankruptcy
- Assets
- Automatic Stay
- Business debt
- Cash Advances
- Chapter 11
- Chapter 13
- Chapter 7
- Conversion
- Credit Counseling & Debtor Education
- Debt solution centers
- Discharge
- Disposable Income / Budget
- Exemptions
- Foreclosure
- Fraud
- Home Loan Modification
- Home loan modifications
- Means test
- Plan payments
- Planning
- Pre-filing planning
- Preference / Preferential payments
- Proof of Claim
- Property (exempt
- reaffirm or surrender)
- Redeem / Redemption
- Security interests
- Student loans
- Tax Debts
- The estate
- Blogroll
- Business & small business
- child custody
- child support
- Civil Procedure
- consumer bankruptcy
- consumer debt
- Debt collection
- dissipation of assets
- Divorce
- Estate Planning
- Family Law
- Financing
- Fraud
- Gratitude
- Guardianship
- Life & Law
- Marital Assets
- Mediation
- Negotaion & conflict resolution
- Parenting
- Paternity
- Politics
- property allocation
- Solo & Small Firm
- Spirituality
- Uncategorized
- Visitation/Time sharing
- Words & Phrases
-
RSS
Entries RSS
Comments RSS
Leave a Reply