Chp 7 Bankruptcy Discharged!! Help still needed!

[chyna1057]

What is the name of your state? NJ

I recently filed chp 7 with the help of a bankruptcy website. I answered their questionnaire and they inturn took my answers and prepared my paperwork. After about 3 months of sweat; wondering if everything came out ok because it seemed almost too easy, I finally received my discharge. I still need some help with getting the court to release the levy that promted this bankruptcy. I tried contacting the court officer and got the run around. Never returned any of my calls when I left messages asking for help. When I did finally get in touch with someone, I had a lady ask me if I felt like I SHOULD get my money back and she also gave me the run around. I remained cool, but still no one would give me a straight answer as to what to do now.

Do I send a copy of my discharge paper to the attention of the court officer? Is there some proper way to address the letter notifying them that I am sending a copy of the discharge and would like them to remove the levy? How about the bank? Should I send them one too? What if the court officer ignores my request?

I really need that money back because it was my entire paycheck. I'm a single parent and I live on my own. I had to borrow money from family to pay my rent and bills and I'd like to pay them back for helping me out. If I didn't have them, My son and I would've been evicted and still held responsible for bills that were due that same week. Any help anyone can provide will be GREATLY appreciated!!!

 

[djohnson]

Unless I'm misunderstanding this post, I'm not sure you can just get it back. The levy was done legally prior to you filing bankruptcy. If it was in a certain time period you could petition the court to have those funds refunded, but that would be a separate order than just your bankruptcy. Did you actually talk to an attorney? Did you file to have those funds refunded? Did you include them as debtors?

 

[chyna1057]

Yes, I did include them as debtors.

No, I did not file to have those funds refunded, becuase I didn't know I had to. I guess that's why I'm here. Just trying to find someone to help me out and let me know what I have to do next to have the levy released.

 

[djohnson]

Has it been discharged? When? It may be too late.

 

[chyna1057]

It has been discharged as of April 22nd, 2005. No Asset case and bankruptcy court says it's been closed according to thier records. I guess the only thing I can do is send a copy of the discharge to the court officer and my bank and a letter requesting the funds be released. I really don't know what else to do.

 

[djohnson]

That's not going to get them released. Because it was paid (or levied) prior to you filing, the bankruptcy filing alone doesn't effect it. You need to contact your attorney to see if it is too late to open it to amend and request for the funds to be returned. I don't know if it is or not. I do know they aren't going to just hand it back to you just like everyone else that was paid before you filed isn't.

 

[chyna1057]

The creditors didn't receive the funds yet. The levied amount was placed into a seperate levy holding account at my bank(Dec 04) and they (creditor's) would have to file motion for turnover of the funds, which they did (Jan 05.) Once I filed bankruptcy(Also Jan 05), there was an automatic stay put into play which meant that all collection attemps had to stop. So the creditors had to withdraw the motion for turnover(Feb 05), which they did just before my 341 meeting took place. I listed the debt in the bankruptcy and it along with everything else listed was discharged (Apr 05). So now what?? I talked to a lawyer who told me to contact the bankruptcy court clerk and ask them what I should do. I contacted them who said there was nothing they could do for me because according to their records my case is a no asset BR case and it was "case closed" this month. Also said all she would do is send a copy of the discharge to the court officer. I'm just afraid that along with a copy of the discharge, there should be some official request to vacate the judgment and have my levy released since the debt was discharged.

 

[chyna1057]

I guess I'll call the court officer and see if maybe they are in a better mood then the last time I spoke with them and ask what else I need to do. Thanks very much for the advice and I'll keep ya posted! If anyone else has some advice on this subject, I appreciate ALL the help that I receive.

 

[Ladynred]

HOLD ON !

First of all, this is what happens when you don't hire a LAWYER to handle a bankruptcy. You are CLUELESS as to what you COULD have done to get the levied money returned to you long before now.

What you MUST do NOW, is get the JUDGMENT that was rendered against you VACATED - made null and void. They cannot levy anything w/o suing you and getting a judgment FIRST. So, NOW you must file a Motion to Vacate the JUDGMENT. Once the judgment is vacated, they MUST release your funds. The debt was discharged, they can NOT hold that money.

You also need to stop trying to get anything legal done over the phone. You're wasting your breath. If its not in writing, it never happened !!!

 

[chyna1057]

Thanks Ladynred!

That's exactly how I worded the letter. I put, Subject: Motion to vacate judgment and started the 1st paragraph as such.

Along with this motion, I am sending copies of my discharge and actual filed petition. Any idea how long that would take to process?

I WISH I could've afforded a lawyer. But obviously, If I couldn't pay off my debts, how could I afford an attorney. None I spoke to were willing to set up a payment plan prior. They all wanted monies upfront and kept telling me that I need to hurry up and file with in the next few weeks if I wanted that money back. Leaving me no time at all to try to scronge up an additional $1000 from friends and family, because they've already lent me that much to pay my rent and bills when my bank account was levied upon in the first place. Jeez! What a mess I've gotten myself in. No sense for me to continue to beat myself up over what I could've done. Only one way to go from the bottom and that's up!

Thanks again to ladynred and djohnson for all your help with my matter. You guys are great!

 

[Ladynred]

I hope you haven't mailed that letter to the court yet.
You can't just mail a letter, it MUST be in a specific legal format. The court clerk or the judge is likely to send it back to you or ignore it because its not a proper Motion.

There is a sample here. Its not for your state, but the general format for a proper motion is what you want/need:

http://courts.state.de.us/How To/?civilmotionpkt.pdf

 

[chyna1057]

Nope! I haven't mailed it yet. Was searching on the internet to see if I could find the proper way to word/format it. I am a worry wort. I don't want to make any mistakes in this matter to cause any delays. I did, however, speak to a court clerk and that's basically what she told me to do. As long as I included the Docket no. and signed it, that's basically all I needed. Didn't sound right to me. So here I am again. Even though I do need my money back ASAP, i figure what the hell is a few more days to make sure I have everything correct before I send forth.

 

[Elmo-1]

It's not too late to see a lawyer

Depending on the details of your case, you may be opening up a can of worms. The money that was levied should have also been listed as an asset in your petition. If you pursue this too passionately without legal advice, it's not impossible to be charged with fraud if you innocently omitted the asset. Get legal advice on this before going any further. If it costs $200/hr for attorney fees, that's the price of knowing it's done right, knowing if it can be done at all, or possibly the price of freedom.

 

[chyna1057]

I did speak to a lawyer and they told me to contact the court clerk and see if they can help me. i spoke to the court clerk and they told me that all I had to do send a copy of my discharge,the bankruptcy petition, and a letter, motion to vacate the judgment, with the docket number and signature. Since this debt was listed in my bankruptcy case and was discharged, they(creditors) can't collect on that, right?

The collection agency who went after me said I owed a total of $4300. At the time when the actual levy was put on my bank account, was the day I got paid and i got direct deposit. The amount that was levied upon was a total of $1100. Leaving my bank account EMPTY. So at the time of filing BK, Schedule B where you list your personal property assets, it asks for checking account current market value and I put $0.00 because there was nothing left and that where it was.

Ladynred, what do you think? Do you think I can be charged for fraud for for trying to get back my my entire paycheck of $1100. It put a financial hardship on my family(single parent). I was unable to pay my rent, buy food, and pay other bills necessary for living for my child and myself. I had to borrow money from my grandmother in that amount and if I get that back, it goes to her.

According to the bankruptcy court my case was a "no asset" bankruptcy case and was closed as of the 22nd of april. So If I don't get the money back neither can the others because the debt was discharged....right?

 

[Ladynred]

they(creditors) can't collect on that, right?

Right, they cannot, it would be a violation of the permanent injunction of your discharge.

I really doubt that any can of worms is going to be opened here by trying to recover levied funds. While it should have been on your schedules as an asset, even though you couldn't reach it or use it, what you would have ACTUALLY had left of that money IF you could have used it ? What would your balance have been on the day you filed IF you had had that money to pay your bills with ??? Its also possible that you could have exempted the entire $1100 anyway. Did you file using NJ exemptions or FEDERAL exemptions ??? If you used Federal, the $1100 would have been exemptable under this exemption:

Homestead • Real property, including co-op or mobile home, to $18,450; unused portion of homestead to $9,250 may be applied to any property;

Unused portion of $9250 is pretty hefty and would shield the $1100 in cash.

On your BK schedules, there are questions that ask if you've been sued and if there had been any recent garnishments, levies, etc. Your answer to these questions SHOULD have been 'yes'.