Judgement/lien/bankruptcy

[prplegal]

What is the name of your state? PA

I defaulted on a loan from Beneficial. There is a judgement placed against me. (12k)

I became ill and unable to work for a period of time- and am now back to work on Intermitten FMLA-I have a chronic, lifetime condition, but am determined to remain employed.

I offered a repayment plan and the attorney's office representing bene said they would not agree to my terms and have been garnishing my checking accounts every 4 months.

I have also fallen behind on my other cc's but have been keeping my mortgage and car payments current with help from my family. I am not married and I have 2 minor children.

My Father co-signed my mortgage loan and a friend co-signed my car loan, in an effort to not damage their credit I am keeping those 2 accounts up to date... with their help, as they agreed to as co-signers. This, the attorneys office claims, is the reason bene will not accept my offer of $100 a month. Because I should be paying them, and not my mortgage. They want $450. Way beyond my means and even more than the original loan payment was, twice, actually.

I am considering bankruptcy- and want to know if this will clear the judgement- are there hardship clauses in PA-Can I be forced to sell my home to pay this judgement?

My employer only pays by direct deposit and therefore all of my paycheck is being held while the garnishment paper work is being handled. Although wage garnishment is not allowed in PA- it sure feels like they are garnishing my wages..

How quickly will the stay be put into place if I intend to file bkt? Will this release the holds on my checking accounts?

Thank you in advance.

 

[seniorjudge]

You really need to talk face-to-face with a bankruptcy attorney.

You have lots of good questions but with all the details, it really takes a lawyer you can talk to to answer all these problems.

 

[prplegal]

Bkt

Thanks for your time SeniorJudge.

It's an embarassing, horrible place to be.

 

[prplegal]

bkt

I've been researching every possible other avenue besides filing bankruptcy and I see no other way.

I spoke to my H.R. dept about possibly cutting me a check instead of directly depositing into the account with the hold on it, and they refuse.

Anyone with advice about securing a good attorney?

What red flags should I be looking for, if any?

Thanks in advance..

 

[IrishNodak]

I agree that you need to talk to a BK attorney. However, I don't think judgements are dischargable so you will most likely find it won't help you. Even so, with the value of your home and car you may not be eligible.

It really sucks tho' that your employer only pays by DD.

Good Luck! I hope something works out for you.

 

[Ladynred]

There is NOTHING about that judgment that is non-dischargable. It most certainly CAN and will be discharged in a bankruptcy. What needs to be done after your BK, by your BK lawyer or you, is to have the judgment VACATED. The bankruptcy will discharge the debt, but the judgment itself will remain until you ask the court to nullify it.

Filing BK WILL stop the hold on your bank account, ALL collection activity MUST CEASE once you actually file your bankruptcy. The automatic stay goes into effect immediately, as soon as the case is filed and given a case number, you're officially in bankruptcy.

To find a good attorney, I'd start with the court dockets at the BK court. Those lawyers that are there ALL the time are the ones to start with. If you find one that has served as a Trustee, even better - they know BOTH sides.

There is also NOTHING about the value of your home and auto that would 'disqualify' you from filing bankruptcy.

 

[prplegal]

continued...

Just an update...

I did find an attorney who explained everything - Even getting the lien removed from my house.. I understand that's one of the biggest things overlooked.

The difficult part, for me, is trying to pay to have the BK filed, without having access to my last 6 weeks pay because of the garnishment. Catch 22.

Thanks to everyone who advised.

--------------------------------------------------------------------------------------------------------"When life hands you lemons, find someone who's life has handed them vodka, and have a party."----Ron White.
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