topic Re: Thinking of Filing for Bankruptcy.HELP!! in Bankruptcy

Thinking of Filing for Bankruptcy.HELP!!

Anonymous — Mon, 26 Jun 2017 19:02:58 GMT

Hello all. I am so stressed and dont know what to do. I'm at a loss and would appreciate any adivce you all can lend. So I received a notice in the mail that EDD is going to start garnishing my wages. 25% of every check which basically leaves me with abosolutely nothing. They say I owe them close to $10,00.00 from overpayments that were made back in 2011 when I was unemployed. I never received any paper work or anything. I asked them what address they had been sending mail to and it was an address I lived at many years ago. They could care less. Anyways I am seriousely way in over my head here and am thinking about filing for bankruptcy. I dont have anything in collections. Always make on time payments. Only thing bad on my credit is a paid charge off due to fall off in 2019 and a few student loan lates from 2013 and 2014. I dont want to burny any of my creditors. Ive just worked to dam hard to always make on time payments. So If I was to file for bankruptcy this would be the only thing that would be included on it. Please lend me some advice on what I should do. Is this a good idea. Im beyond stressed right now.

Re: Thinking of Filing for Bankruptcy.HELP!!

luxeprw9 — Mon, 26 Jun 2017 20:17:49 GMT

@Anonymous wrote:
Hello all. I am so stressed and dont know what to do. I'm at a loss and would appreciate any adivce you all can lend. So I received a notice in the mail that EDD is going to start garnishing my wages. 25% of every check which basically leaves me with abosolutely nothing. They say I owe them close to $10,00.00 from overpayments that were made back in 2011 when I was unemployed. I never received any paper work or anything. I asked them what address they had been sending mail to and it was an address I lived at many years ago. They could care less. Anyways I am seriousely way in over my head here and am thinking about filing for bankruptcy. I dont have anything in collections. Always make on time payments. Only thing bad on my credit is a paid charge off due to fall off in 2019 and a few student loan lates from 2013 and 2014. I dont want to burny any of my creditors. Ive just worked to dam hard to always make on time payments. So If I was to file for bankruptcy this would be the only thing that would be included on it. Please lend me some advice on what I should do. Is this a good idea. Im beyond stressed right now.

I'm sorry but I don't know what EDD is. But are you able to settle with them?

Re: Thinking of Filing for Bankruptcy.HELP!!

Anonymous — Mon, 26 Jun 2017 20:41:21 GMT

EDD is the unempoyment department for California. And no they will not settle. Already tried that.

Re: Thinking of Filing for Bankruptcy.HELP!!

medicgrrl — Tue, 27 Jun 2017 01:56:30 GMT

If you have any open accounts, then they would also be included in the bankruptcy. I don't think you can choose who to include. Also, you need to check with an attorney to make sure that debt is dischargeable. Have you considered taking out a personal loan?

Re: Thinking of Filing for Bankruptcy.HELP!!

Anonymous — Tue, 27 Jun 2017 09:23:59 GMT

^^What medicgrrl said. If you have no baddies on your CR, you should be able to take out a personal loan to cover the debt which would cost you a lot less than 25% of your income.

Good luck to you!

Re: Thinking of Filing for Bankruptcy.HELP!!

StartingOver10 — Tue, 27 Jun 2017 12:14:18 GMT

Agree with the others - first check that the debt is dischargeable. I would find it hard to believe that it is.....make sure the source of your info is correct.

Re: Thinking of Filing for Bankruptcy.HELP!!

Anonymous — Tue, 27 Jun 2017 16:36:08 GMT

hello all. Thank you all for your responses. I checked into it and it is dischargable. Where can I get a loan for $9000 if I were to go that route?

Re: Thinking of Filing for Bankruptcy.HELP!!

medicgrrl — Tue, 27 Jun 2017 17:09:09 GMT

You can try your bank first. There are also other types of lenders available that you can research on the Personal Finance forum.

Re: Thinking of Filing for Bankruptcy.HELP!!

Anonymous — Tue, 27 Jun 2017 17:34:33 GMT

State owed unemployment income is dischargable? I thought federal and state debts were exempt fron bankruptcy. Did a lawyer tell you this?

Re: Thinking of Filing for Bankruptcy.HELP!!

Anonymous — Tue, 27 Jun 2017 23:14:10 GMT

I was in EXACTLY this situation! I am in California also. However, they did garnish my checks which led me to having to file for Chapter 7. If it's not too late, can you start making payment arrangements with them? Unfortunately, once they have the garnishment order, I believe they are less likely to work with you since they know they have guaranteed money coming via the garnishment. Obviously, bankruptcy is the LAST thing you want to do, so if there's any way to get them to stop the garnishment try it! I know you only have like one or two pay periods before the garnishment starts.

Re: Thinking of Filing for Bankruptcy.HELP!!

Anonymous — Wed, 28 Jun 2017 14:28:21 GMT

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.

Re: Thinking of Filing for Bankruptcy.HELP!!

Anonymous — Wed, 28 Jun 2017 16:46:58 GMT

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.)

Re: Thinking of Filing for Bankruptcy.HELP!!

Anonymous — Wed, 28 Jun 2017 16:55:51 GMT

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.

Re: Thinking of Filing for Bankruptcy.HELP!!

medicgrrl — Wed, 28 Jun 2017 16:55:16 GMT

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.

Re: Thinking of Filing for Bankruptcy.HELP!!

Anonymous — Wed, 28 Jun 2017 17:14:03 GMT

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?

Re: Thinking of Filing for Bankruptcy.HELP!!

wa3more — Fri, 30 Jun 2017 22:20:38 GMT

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