Thinking of Filing for Bankruptcy.HELP!!

[Anonymous]

Unfortunately they have already started the garnishment. The only reason i  dont want to file for bankruptcy is because I dont want to burn any of my creditors. Havent made a late payment in 2 years. I dont want to throw all my progress out the window. 

[Anonymous]

I totally understand. It is not an easy decision to make. At first, I was just going to let them garnish my wages until it was paid off, but the amount was entirely too much - almost $1,000 per paycheck! Plus, the original amount I was overpaid was around $4,000 - the rest was penalties, interest, fees etc. I was making slow steps to rebuild my credit after a few layoffs, but my debt wasn't unmanageable. The garnishment just threw a monkey wrench into everything. Plus the added embarrassment at work - first the notice of wage garnishment and THEN the notice of bankruptcy to stop the garnishment!

Maybe you can file the bankruptcy to stop the garnishment, try to work with EDD and then withdraw the bankruptcy after you've made arrangements with them? (Honestly, I don't even know if that's legal - maybe someone here can help. It may be some kind of fraud, I don't know. Just a thought that crossed my mind as an option.)

[Anonymous]

Disregard my comment about withdrawing a BK - seems it's harder to withdrawal than it is to initially file:

Can a Debtor Cancel a Chapter 7 Bankruptcy?

If a debtor filed a Chapter 7 petition, he or she does not have the option to voluntarily dismiss the bankruptcy. The only way to dismiss a Chapter 7 bankruptcy is to file a motion to dismiss. That motion is presented to the bankruptcy court. The decision is up to the bankruptcy judge's discretion. The bankruptcy judge and standing trustee will inquire as to why the debtor is requesting a dismissal, voluntarily, of his or her Chapter 7 bankruptcy. For example, if a debtor wants to dismiss his or her case because he or she discovers an asset owned free and clear is at risk for liquidation to repay creditors, the trustee will file opposition to any dismissal request. The trustee's task is to assemble non-exempt property and equity and liquidate same to repay creditors. The trustee will try to keep a debtor in bankruptcy and liquidate his or her property and equity even if the debtor no longer wants to remain in the case. In many cases, the decision to get out of bankruptcy is more challenging than the initial decision to file. It is prudent to promptly consult with consumer bankruptcy lawyer before making any determination.

[medicgrrl]

Just know that if you file BK and then have it dismissed, it will report on the CRA's for up to 10 year's.

[Anonymous]

Can you go into emergency budget mode, cut spending wherever you can, sell things, and maybe get a second job/drive Uber/etc., and live with the garnishment?

[wa3more]

what was the reason for such a large overpayment ? If it is due to some fault of the recipient, BK isn't an option.