Credit Problems

What is the name of your state? Michigan
I have recently been dealing with an old debt which was once a part of my bankrupty which was filed in 1997. The bankruptcy was dismissed in 1999. This of course meant all of my debts came back to haunt me again. Anyway, this is the last one that I am trying to take care of. The problem is that they are asking for $17,000 in 12 months or they are going to sue me for the full $28,000. I want to pay them off, but I do not have access to that type of money in that amount of time. I have tried to come up with a feasable payment plan, and they are unwilling to budge. They stated that they will take me to court for a garnishment of my wages at 25%. They have also stated that they will petition the court if I file bankrupty again. Does anyone have any advice on where I stand legally in this situation? Any advice or help would be greatly appreciated.

[I AM ALWAYS LIABLE]

Originally posted by myshel
What is the name of your state? Michigan
I have recently been dealing with an old debt which was once a part of my bankrupty which was filed in 1997. The bankruptcy was dismissed in 1999. This of course meant all of my debts came back to haunt me again. Anyway, this is the last one that I am trying to take care of. The problem is that they are asking for $17,000 in 12 months or they are going to sue me for the full $28,000. I want to pay them off, but I do not have access to that type of money in that amount of time. I have tried to come up with a feasable payment plan, and they are unwilling to budge. They stated that they will take me to court for a garnishment of my wages at 25%. They have also stated that they will petition the court if I file bankrupty again. Does anyone have any advice on where I stand legally in this situation? Any advice or help would be greatly appreciated.

My response:

You asked - -

"Does anyone have any advice on where I stand legally in this situation?"

Yes, you're standing in "legal quicksand."

IAAL

Thank you! I was already aware of that. I was hoping for something a little more insightful.

[I AM ALWAYS LIABLE]

Originally posted by myshel
Thank you! I was already aware of that. I was hoping for something a little more insightful.

My response:

Like what?

Did you have something in mind, yourself?

If so, post it and we can discuss it.

IAAL

If they due get a judgement against me, will they be able to take 25% of my wages, regardless of expenses needed to live on? Is it possible to file bankruptcy again? I belive the statute of limitations in the state of Michigan is 6 years, if so considering that this account went deliquent in 1996, would they be able to sue me? How does the statute of limitations work if a bankruptcy case has been dismissed?

[I AM ALWAYS LIABLE]

[quote]Originally posted by myshel
[b]


If they due get a judgement against me, will they be able to take 25% of my wages, regardless of expenses needed to live on?

MY RESPONSE: Yes, they can. Your living expenses are none of their concern, nor the concern of the court.



Is it possible to file bankruptcy again?

MY RESPONSE: You can try every 6 years, from the date of your last filing date.



I belive the statute of limitations in the state of Michigan is 6 years, if so considering that this account went deliquent in 1996, would they be able to sue me?

MY RESPONSE: Well, that's true. However, you've never stated whether you made any kind of payment on the debt during the past 6 years - - which would start the SOL clock again. Also, if you acknowledged the debt, e.g., in writing, that would start the SOL clock all over again.



How does the statute of limitations work if a bankruptcy case has been dismissed?

MY RESPONSE: These are two independent theories of law, having little, if any, relation to each other.

IAAL

Thank you.

I have one last question, is the garnishment of wages on a gross or net take home basis?

[I AM ALWAYS LIABLE]

Originally posted by myshel
I have one last question, is the garnishment of wages on a gross or net take home basis?

My response:

It's taken from the gross, just like your taxes are taken from the gross. Think of a garnishment as any other deduction.

IAAL

[Ladynred]

Ok, I'm confused. I thought that garnishments were taken on your DISPOSABLE income, meaning NET (basically). Based on Gross, that can be pretty huge, and, I might add, financially crippling for a LOT of people.

Here's what the MI garnishment law says:

"The amount of wages subject to garnishment in a week is limited to 25% of an employee's disposable earnings or the amount by which his disposable earnings exceeds 30 times the current minimum hourly wage set by Section 6(a)(1) of the Fair Labor Standards Acts, whichever is less."

I found that here: [url]http://www.michigan.gov/dmb/0,1607,7-150-9131_9347-29983--,00.html[/url]