How to avoid foreclosure amidst disability and bankruptcy

Guest

Thanks Mikee for sharing information on when wage garnishment is allowed in pa. I was also looking for information on this very topic for the last few days.

So it seems that after getting a deficiency judgment the lender cannot garnish wages for recovery of his dues. That's a big relief.

Guest

Wow, that felt good to give something back to this site after all they have helped me with. And your not just whistlin' dixie when you say that's a big relief. Still, if anyone has a comment on this, please post it.

Guest

In case I was confusing when I was asking for comments, I was asking about the wage garnishment. I'm struggling as it is and although from my other post it looks like garnishment can't be done for a deficiency suit. My thinking has become now like everything that can go wrong, will. So if there are other comments about the garnishment thing, please post them. Thank you.

Niicss · Posted: Sat Jul 07, 2007 7:25 pm Post subject:

Guest

Niicss, thank you for the confirmation on garnishment. It's so important and when it seems like everything is going wrong, getting confirmation on anything positive is a big relief. You like to hear it over and over that something, anything went right for once.

blue · Posted: Mon Jul 09, 2007 2:54 pm Post subject:

Mikee, every state has its own laws about garnishment and you live in one of the four states where wages cannot be garnished for recovery of consumer debts. The four states are Texas, North Carolina, South Carolina & "Pennsylvania".

Thanks
Blue

Guest

Blue, Thank you for that response, like I said before, when everything is going wrong, it's a relief to hear something positive once in a while. If you might know about this-if a mortgage company goes ahead with a deficency suit, can it be included in a bankruptcy #7 ?

sara

Well Mikee, I don't think it is possible to include the mortgage debt in the bankruptcy Chapter 7. This is because the lender will already take back the money he has invested through foreclosure and then ask for a deficiency judgment. So, I don't think there's any need to include the loan in the bankruptcy.

Take Care

blue · Posted: Tue Jul 10, 2007 4:45 pm Post subject:

Guest

So there is an advantage to waiting on the BK until after the foreclosure and the time allowed to file a deficency suit has passed. If I were to file #7 before the lender filed the deficency, I can not include it in my BK? Would this be correct?

Guest

Sorry, I need to add to my post above. If the foreclosure happens after I file #7 I would not be able to add the deficency suit to it, would this be correct?

Samantha

Hi Mikee,

Welcome back to the forum.

If the bankruptcy is filed prior to the foreclosure, then the lender cannot initiate the auction until and unless he receives the permission from the bankruptcy court to move on with the home sale. So, till the court gives permission, the lender cannot hold the auction and even ask for the deficiency if at all the sale price is lower than the outstanding balance.

Hope this helps..

God bless you.

Samantha

Guest

So as long as the lenders are in the BK, this deficency stuff will be taken care of. If the BK is first it's like Samantha said the lender can't initiate, if it's after it's like Blue said it can be added to the BK. I think I might be able to sleep tonight. Thanks a million again to the folks of this site, you have a life saver web site going on here. I don't know if you realize how much good you do for people. Keep treating people who have run into some bad times like human beings.

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.41 Dollars($)

Hi Mikee,

Guest

Carnahandavid, with the understanding that the BK puts everything (foreclosure) on holdbut wouldn't I be including the lender in my BK as a debt I can no longer pay (mortgage)? So if the lender files the deficienty suit sometime it wouldn't matter because they are included in BK. Confuses say "this is confusing, don't go to sleep just yet."

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