How to avoid foreclosure amidst disability and bankruptcy

Author Message
morrisett

Guest






PostPosted: Thu Jul 05, 2007 6:32 pm    Post subject:

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.
Mikee

Guest






PostPosted: Thu Jul 05, 2007 8:49 pm    Post subject:

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.
Mikee

Guest






PostPosted: Sat Jul 07, 2007 9:02 am    Post subject:

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.
Icon Mini Profile Niicss
Niicss



Joined: 03 Oct 2005

Posts: 2620
Location: New Jersey
409.63 Dollars($)
PostPosted: Sat Jul 07, 2007 7:25 pm    Post subject:

Quote:
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.


You are right Mikee. In PA wage garnishment is only possible for child support, student loans and federal taxes. Your wages cannot be garnished for recovery other debts. On this page also you will find confirmation of the fact that wage garnishment is not possible for consumer debt - http://www.cccsintl.org/susan/garn.htm

Niicss

_________________
Good is the Enemy of Great.
Mikee

Guest






PostPosted: Sun Jul 08, 2007 8:28 pm    Post subject:

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.
Icon Mini Profile blue
blue



Joined: 21 Oct 2005

Posts: 1138
Location: MARYLAND
137.84 Dollars($)
PostPosted: 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

_________________
Lets help each other. Try my blog
Mikee

Guest






PostPosted: Mon Jul 09, 2007 8:21 pm    Post subject:

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 ?
Icon Mini Profile sara
sara
Moderator


Joined: 05 Jul 2006

Posts: 1679
Location: New Brunswick, New Jersey
315.11 Dollars($)
PostPosted: Tue Jul 10, 2007 12:29 pm    Post subject: RE: can mortgage be included in bankruptcy chapter 7?

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
Icon Mini Profile blue
blue



Joined: 21 Oct 2005

Posts: 1138
Location: MARYLAND
137.84 Dollars($)
PostPosted: Tue Jul 10, 2007 4:45 pm    Post subject:

Quote:
If you might know about this-if a mortgage company goes ahead with a deficency suit, can it be included in a bankruptcy #7 ?


Mikee, if foreclosure occurs before you file chapter 7 and lender is able to get a deficiency judgment for the balance dues then this balance amount can be included in Chapter 7 case.

Thanks
Blue

_________________
Lets help each other. Try my blog
Mikee

Guest






PostPosted: Wed Jul 11, 2007 3:40 am    Post subject:

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?
Mikee

Guest






PostPosted: Wed Jul 11, 2007 3:44 am    Post subject:

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?
Icon Mini Profile Samantha
Samantha
Community Mentor
Community Mentor


Joined: 16 Sep 2005

Posts: 1602
Location: MASSACHUSETTS
149.70 Dollars($)
PostPosted: Wed Jul 11, 2007 4:27 am    Post subject: RE: bankruptcy chapter 7 and foreclosure deficiency

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

_________________
Know how to compare lenders with mortgage booklet
Mikee

Guest






PostPosted: Wed Jul 11, 2007 1:28 pm    Post subject:

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.
Icon Mini Profile carnahandavid
carnahandavid



Joined: 21 Dec 2006

Posts: 239

58.41 Dollars($)
PostPosted: Wed Jul 11, 2007 1:59 pm    Post subject:

Hi Mikee,

Quote:
If the foreclosure happens after I file #7 I would not be able to add the deficency suit to it, would this be correct?

Court gives order granting discharge of all dischargeable debts which exists on the date chapter 7 case is filed. So if lender is not able to get court orders to recover balance amount through deficiency judgment before you file chapter 7, you will not be able to include it in the case.

We will all prey that you be able to come out of this big financial crisis presently in.
Mikee

Guest






PostPosted: Wed Jul 11, 2007 5:02 pm    Post subject:

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."
Quick Reply
Your Name
Subject
Message body

All times are GMT - 7 Hours
 Previous  1 2 3 4  Next  
Page 2 of 4

 
Ask Questions
Community Experts
Cliff Pape - market Analyst Cliff Pape
Market Analyst
Houston, Texas







Highlights
Related Readings
Bankruptcy
Mortgage Loan Modification
Mortgage after foreclosure
Avoid Foreclosure


Helpful References
Mortgage Terms
Mortgage News
Book Center
Mortgage Guide
Shop and Compare lenders


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

New and upcoming tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool






DebtConsolidationCare    Insurance community: We Make You Insurance Smart    CreditMagic: Helping you build up credit


We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0