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  1. #1
    Join Date
    Oct 2008
    Posts
    3

    Default Wage Garnishments on Chapter 13

    My question involves bankruptcy in the state of: PA
    I filed for chapter 13 to save my home, so I wouldn't have to go through a foreclosure. But it doesn't seem that was a great idea, either. When I was told I would have my wages garnished, I said fine. But I didn't know that the mortgage company I am with set me up on a LIBOR percentage rate, which means if the economy is going great within every 6 months, they take out more in my paycheck. And if the economy is not doing so well, it stays the same. This is hard on me, just to pay for the other bills in my home, along with food and transportation. It is a complete joke. I want to move out of my home and get an apartment or rent a townhouse, but I can't do anything when my funds are tied up. My car is also in the chapter 13 and I don't even drive it, my ex-boyfriend drove it, but we are no longer together. So now I'm stuck with a car, which needs work and is not moving. I told my lawyer and all I got was, "your case is fine. don't worry about it." Well that's easy for him after I explained to him, that my funds are going to the chapter 13 - like 80% of it and I have nothing. And I feel if I try to get an apartment, I will get turned down do to a low credit score, because I can't pay the full amount due on bills, once again due to my funds, which is taken away from me every 6 months? Why can't the courts and my mortgage company work on a lower amount that is due or is there such a thing as only taking garnishments out of one paycheck a month and not twice a month? I don't mean to sound stupid, but I do have to live. Also, my mother is with me and she has a medical condition (MS) that affects her limbs. And she can't go up steps, so that is another issue I have, if and when I try to move.
    Any suggestions would be helpful. I would like to thank you in advance for taking time out to read my entry.

  2. #2
    Join Date
    Apr 2007
    Location
    Southeastern Michigan
    Posts
    1,226

    Default Re: Wage Garnishments on Chapter 13

    If you filed Ch. 13, the wage garnishment should have been stopped in light of your filing and including the mortgage payment included in your bankruptcy filing.

    Am I missing something?

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Wage Garnishments on Chapter 13

    I'm a little confused, too. Are you saying that in addition to the payments to the trustee, you are making regular house & car payments directly to the lenders - payments "outside the plan."? Thanks.

  4. #4
    Join Date
    Sep 2008
    Location
    wayne county
    Posts
    23

    Default Re: Wage Garnishments on Chapter 13

    I would consult another lawyer if I were you. Sounds fishy to me too. You may have to refile. Something is wrong there.

  5. #5
    Join Date
    Oct 2008
    Posts
    3

    Default Re: Wage Garnishments on Chapter 13

    No the payment are not outside the plan. They are included. But its hard on my everyday life: transportation, food, etc.

  6. #6
    Join Date
    Apr 2007
    Location
    Southeastern Michigan
    Posts
    1,226

    Default Re: Wage Garnishments on Chapter 13

    In all honesty, you should do absolutely NOTHING without first consulting your bankruptcy attorney!!! Anything you do outside of the plan, or that places your plan in jeapordy, could put you in a situation were you have no legal recourse and leave you at the mercy of your creditors.

  7. #7
    Join Date
    Oct 2008
    Posts
    3

    Default Re: Wage Garnishments on Chapter 13

    The wage garnishment is part of the chapter 13. which is horrible due to the fact there is a libor rate increase of every 6 months. So I'm trying to modify my loan with HSBC by dropping the chapter 13 and or refinance or try to move, but the credit score is low, due to the snowball event that is taking place.

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