LIVESTREAM Q&A - Bankruptcy, Debt Collection Lawsuits, Wage Garnishments

TL;DR

In this live Q&A session, the host discusses bankruptcy, debt collection lawsuits, and related issues, providing helpful information and answering viewers' questions.

Transcript

hey everybody welcome to thursday night welcome to the consumer warrior uh consumerware youtube channel appreciate everybody checking in today um man the week seems seem to go by quick i know that uh once it's thursday night uh the week's almost over so so we're here and we're getting ready to start um each and every thursday night in the youtube c... Read More

Key Insights

• 🏆 Chapter 7 bankruptcy requires qualification through the means test, based on income and household size.
• 🏘️ Mortgage payments must continue in bankruptcy if the debtor wants to keep the house.
• 🎟️ Chapter 13 bankruptcy helps catch up on missed mortgage payments and provides a timeframe for repayment.
• 🤨 Wage garnishment and account freezing are common tactics by creditors, but objections can be raised.
• 📼 Transferring assets and repaying loans before bankruptcy filing can have negative consequences.
• 📁 It is generally possible to make purchases after filing bankruptcy but better to wait for the meeting of creditors.

Questions & Answers

Q: Does mortgage forbearance affect bankruptcy?

Mortgage forbearance may impact Chapter 13 bankruptcy calculations but generally won't affect Chapter 7 bankruptcy. In Chapter 7, mortgage payments must still be made to keep the house.

Q: Can I have two bankruptcy cases active simultaneously?

It is possible to have multiple bankruptcy cases, such as a Chapter 7 followed by a Chapter 13, but it is not necessarily recommended. Each case has its own implications and requirements.

Q: Can I make large purchases immediately after filing bankruptcy?

While it is generally permitted, it is advisable to wait until after the meeting of creditors, which usually occurs 4-5 weeks after filing. Financing a purchase is usually preferable to paying with cash.

Q: What should I avoid doing before filing bankruptcy?

Avoid transferring assets out of your name within the two years preceding bankruptcy filing. Also, refrain from repaying loans to family or friends in the 12 months before filing, as these may be deemed preferential transfers.

Q: How should I prepare for trial in a debt collection lawsuit?

Understand the burden of proof lies with the plaintiff. Familiarize yourself with the case elements they need to prove, object to hearsay evidence, and be aware of courtroom etiquette, such as seating arrangements.

Summary & Key Takeaways

• The host discusses the means test required for Chapter 7 bankruptcy qualification, explaining income limits based on household size.

• He addresses how mortgages are treated in bankruptcy, emphasizing that mortgage payments must continue if the debtor wishes to keep the house. In Chapter 13 bankruptcy, a plan can help catch up on missed payments.

• The host mentions the impact of mortgage forbearance on bankruptcy, explaining that it might affect disposable income calculations but won't impact the overall case.

• He provides insights into judgment-proof status, wage garnishment, freezing of accounts, and negotiating settlements.

• The host advises on preparing for trial, responding to motions for summary judgment, and objections to hearsay evidence.

• He discusses bankruptcy case coordination, purchasing assets before and after bankruptcy, and considerations for divorce property settlements.