i am on ssd--limited fixed income. i filed for bankruptcy when i was working and was not able to complete it so now those people that i owe are calling me all the time. i paid an atty for chp 7 and instead he got me chap 11. can the creitors go in my bank acct and take money out??????
Anonymous
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The only way the can get into your bank account is to go to court and sue you first. Once they have a judgement, they can go after your accounts, or even property like a car. They can not, by lay, garnish your Social Security.
I think what you meant to say is you file a chapter 13, and you were not able to keep up the payments to the trustee, right? Don't feel bad. Over half of the people who go with a Chapter 13 fail.
File again. The problem before is that you were working, and they based your payments on your previous year earnings. Now that you are off work and living on SSDI, they will adjust your payments accordingly. You need to contact your attorney on this.
icsowesmemoney
I think that you need a new Attorney. A CH 11 is reserved for Business only and no person can file a Ch 11. individuals can only file a Ch 7 or Ch 13.
Your SSd check is exempt from garnishment, BUT, if you make any other type of deposit in the checking account then it becomes "co-mingled funds" and the exemption is gone. Which means if you get a $10 birthday check form your grandma and deposit it in to the same account that your disability check goes in to, then the entire account is now free game for a period of up to 12 months in some states.
I would check with an Attorney in your area to find out more and to review your states laws.
Good Luck!
thylawyer
When was your c. 11 filed? Where? Docket number? Why was it not completed? Have you made a claim against your lawyer?
If the creditor is a tax authority (IRS, DOR), they can sweep your account or attach your SSDI up to 15%. Any other creditor should not be able to levy on your SSDI, but you may have to go to court to stop it.
You may be able to refile, this time as a chapter 7. The new law allows the filing fee to be waived. You might want to get another lawyer, and should be able to find one to do a c. 7 for around $500-600, maybe less if you qualify for special programs for low-income people.
Anonymous
no they cannot go into your bank account and take your money...the people you owe money to will eventually sell the account to a collections agency. All they can do is call you and send you letters regarding the account. I can tell you this though, your credit is not going to be very good if those accounts don't get paid.
Lisa
You money can be garnished only if:
1. it is something the creditor normally does
and
2. if it is legal in your state.
I would check the state law and I would speak to another attorney about them filing the wrong chapter for you. Chapter 11 is a restructing and usually only for businesses.