Facing wage garnishment and confused

[paintedlady]

What is the name of your state? MA

I just moved to MA from RI (within the last two weeks). Late last month I met with a lawyer in RI to discuss filing Chapter 7 because of out of control debt and an impending wage garnishment. In order for me to hire him, I have to pay him $1000 up front (no payment plan). In order for me to come up with the money quickly (I'm trying to beat the garnishment), I haven't paid my car payment and it is almost 30 days late. I'll need to also miss this month's car payment as well. I'm not so much concerned about the car as I'm paying more than what it's worth and really can't afford the payments anyway. I don't plan on reaffirming the loan for it. Along with my just moving to MA, I'll also be starting another job the week after next. Here's where I'm uncertain about what to do, and any advice would be much appreciated...

Seeing as how I don't want/can't pay for the vehicle that I'm now late on, I know I will end up having it reposessed, voluntarily, if possible. But, I also need a car for work. I have enough right now to purchase a $500 beater to enable me to get to my new job. Or, I can wait two weeks when I will have a total of $1000 to pay the lawyer. If I pay the lawyer and get the ball rolling for bankruptcy, I may lose my car (involuntary repo) before I can get a cheap one and I'll be out of a job. If I buy the cheap beater, I'll have to wait another 4 weeks before I have the money for the lawyer and I risk garnishment (the hearing is at the end of this month). I don't want to have wages garnished (obviously) but I really don't want them garnished from a job I just started. How long does it take for garnishment to take effect if you've changed jobs? Also, now that I live in MA, even if has only been a short time, do I need to now file in MA or can I keep the same lawyer and file in RI?

I'm seperated from my husband and will be getting a divorce, and I'm trying to do the best that I can right now, but I'm just so confused.

Any advice would be greatly appreciated.

[Ladynred]

now that I live in MA, even if has only been a short time, do I need to now file in MA or can I keep the same lawyer and file in RI?

You're going to have to file in RI and use RI exemptions since you have not lived in MA for 180 days yet.

Have you tried calling around to see if you can find a lawyer that DOES take payments for his fee ??

If it were me, I'd get the beater, let the car you can't afford go, and then see what you can do about the garnishment, if it happens. The repo, voluntary or not, won't matter as it will be discharged in the bankruptcy and the bankruptcy on your reports will trump any repo. At least with a vehicle you CAN afford, you can keep your job. If they get the garnishment, you CAN appeal it. IF the lawyer gets the BK filed ASAP - he can do an 'emergency' filing - then any monies taken by garnishment will be returned to you in the bankruptcy. One thing you MUST do, and do ASAP, is get the mandatory credit counseling session DONE and over with. A 45-60 minute session is all that is required under the new law but it MUST be completed BEFORE you file, otherwise your case will be dismissed. If the lawyer didn't tell you this already, .. find another lawyer !

[paintedlady]

That's pretty much what I was thinking, I just needed to hear someone else say it. I'd rather have a beater and let this car go so at least I'll have a job.

The wage garnishment will probably go through and I really can't appeal because I have no case (as long as I'm employed and not on public assistance and make the minimum required, they'll garnish the 25%). I'm just hoping that my job change will throw them off a little and buy me some time to get more money together for the lawyer. And yes, he gave me a password to do the credit counseling online but I can't do it until I'm pretty close to paying him because he gets billed for it.

Thanks for the advice, I feel a little better now.