Articles Posted in Bank Levy

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ONLY $675 ATTORNEY FEES FOR A ST LOUIS CHAPTER 7 BANKRUPTCY

The only way a creditor can garnish your wages or levy a checking account is by first receiving a judgment against you in a court of law. Otherwise, they cannot do it (regardless of what kind of threats they happen to tell you). But we can fix that situation very quickly!! Below is a full description:

When you fall behind on payment to your creditors (regardless of whether it is a credit card, medical bill, or payday loan), the creditor will eventually sue you for breach of contract. When you are sued, the law states that you must be given notification of this action. This notification comes in the form of a summons that is delivered to you by way of a process server.

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ONLY $675 ATTORNEY FEES FOR A ST LOUIS CHAPTER 7

There is only one way that a creditor can place a levy upon your checking account: by getting a judgement against you in court. This judgment must first be achieved before the creditor may take any such aggressive actions against you. Of course, the creditor will not tell you about all the steps involved before they put the levy upon your account!! They will just make it sound as if they can levy whenever they feel like it. Below is a more thorough description of how it works:

When you fall behind on your debts, the creditor will call and call (and harass you over the phone, and send you many threatening sounding letters). If no payments are made, the creditor can do one of two things at that point: 1) sell the debt to a collection agency; 2) or sue you for breach of contract.

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ONLY $675 ATTORNEY FEES FOR A ST LOUIS CHAPTER 7

When a creditor receives a judgment against you, it can enforce the judgment in one of three ways: 1) garnish your wages; 2) levy your bank accounts; 3) attach a lien to your property. Below is a description of the process (and what can be done about it):

To begin with, a creditor cannot just decide one day to garnish your wages. It must follow the necessary procedures laid out by the court. The creditor must file a breach of contract action against you, they must serve you with a summons, there must be a hearing on the matter, and the court must rule in the creditor’s favor.

Once the creditor has this judgment in hand, it may enforce the order in one of the three ways listed above. The primary method the creditor would employ to enforce would be to attach a garnishment to your wages. This is done by way of a Writ of Garnishment that is filed with the court. This Writ is then served upon your employer (usually to the payroll department). Your employer will have no choice but to begin deducting 25% of your net earnings (or 10% if you claim Head-of-Household status).

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ONLY $675 ATTORNEY FEES FOR A ST LOUIS CHAPTER 7

When a creditor receives a judgement against you for an old debt that you owe, it may pursue a few different remedies. One such remedy is to place a lien upon your banking accounts (checking or savings). This lien will remain until the full debt is paid, or if you file a St Louis bankruptcy.

A creditor judgement entitles the creditor to retrieve delinquent funds owed to it in one of three main ways: 1) a wage garnishment (which is the most common method); 2) by placing a lien upon a major asset (such as a piece of real estate); or 3) by placing a lien upon your bank account.

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Yes they can. But only after certain procedural steps are taken. In other words, a creditor cannot simply walk into your bank and demand that the teller drain your account and hand it over to them.

When you have an agreement with a creditor (whether it is a credit card, medical services, payday loan, etc.), the contract you sign spells out the particulars of the agreement. Included in this agreement is what constitutes a breach of the contract. This is usually in the form of non-payment. So if you are unable to make monthly payments on your loan, the lender will start calling you crazy, send you nasty letters, and even threaten to sue.

Eventually, the creditor will file a lawsuit based on a breach of the contract. But there are certain procedural requirements that must first be done. To begin with, you must be properly served with a summons. This document is typically presented to you (or someone above the age of 18 who can take it on your behalf) at your home or place of work. The summons will give the court date and time, and should also provide all the documentation regarding the suit against you.

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Only certain kinds of debts are paid back in a St. Louis Chapter 13 bankruptcy. These would include mortgage arrearage (in other words, the amount of money you have fallen behind on your house payments), car loans, tax debt, back child support, and sometimes a portion of your unsecured debt (like credit cards, medical bills, and payday loans). But the exact amount you pay back per month depends on a several key factors.

A Missouri Chapter 13 bankruptcy is described as a repayment plan over the course of three (3) to five (5) years during which you pay a certain monthly amount to the Trustee. The Trustee then distributes these funds to the various creditors listed in your Chapter 13 plan. At the end of the plan, all the remaining unsecured creditors are discharged (i.e. knocked out forever). This in contrast to a St. Louis Chapter 7 bankruptcy, where all the unsecured creditors are discharged right away.

The main reason why someone would file a Chapter 13 would be because they have fallen behind on their mortgage, are risking foreclosure, but are not in a position to come current on the note right away. Filing a Chapter 13 will stop the foreclosure sale from going through, and allow you pay back the arrearage over a period of years (which is far better than coming up with the funds immediately). Another major example would be a case in which your car is repossessed. A 13 will allow you to get the car back, and pay off the balance of the loan with a much better interest rate than you are probably handling right now. In addition, it may also be possible to cram down the amount owed on the car to the actual fair market value of the vehicle. This can often end up shaving several thousand off of what you owe.

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Yes, it does. And depending on how quickly you get your Missouri or Illinois bankruptcy filed, you can actually prevent the creditor from taking any action at all (so as to avoid any money being garnished from your pay checks).

The filing of a bankruptcy is accompanied by what is called an Automatic Stay. This is a fancy way of saying that everything stops. All creditor activity must immediately cease, including phone calls and letters. This Stay also extends to anything awarded to the creditor by way of a hearing. When a creditor sues you for breach of contract on a debt that you owe, the judgment from the court allows the creditor to do one of three things: 1) garnish your wages; 2) levy your bank account; 3) place a lien against your property. The creditor can execute one of these options, or it can do all three at once. The most likely, of course, is the wage garnishment. The creditor simply sends your employer the necessary documentation, and the payroll department begins to deduct.

But once a bankruptcy is filed (whether it is a St. Louis Chapter 7 bankruptcy, or a St. Louis Chapter 13 bankruptcy), the garnishment must end. Your bankruptcy attorney simply notifies the creditor’s attorney of this fact, and that attorney then sends a Release of Garnishment to your payroll department. In addition, the underlying debt is discharged, along with the rest of your unsecured creditors (whether they be in the form of credit cards, medical bills, payday loans, deficiencies from a repossession or foreclosure, etc.)

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My suggestion would be, yes, you should appear in court on the day of your hearing. Not doing so can have negative consequences (even if you end up filing a Missouri or Illinois bankruptcy later on). let me explain why.

If you fall behind on your debts, one of the things that a creditor can do is to sue you for breach of contract. In other words, you agreed to make certain payments per month, you failed to do so, and now they want the court to recognize that you have breached your end of the deal. In order to make this happen, the creditor (through their attorney) will file the Petition for Breach with the proper jurisdiction, and then have you served with a summons. The summons is very important, because this is the document that informs you that a hearing has been set on matter, which includes date, time, and location. If you are not properly served with a summons, the hearing cannot take place.

Assuming you are properly served, the summons will indicate the date and time on which the hearing will be held. This hearing is your opportunity to make any argument you might have as to the validity of the debt in question. But if you do not appear on the designated date and time, the creditor will receive what is called a ‘Default Judgment.’ A default judgment is an order from the court essentially saying that the creditor wins by default (because you did not show up). Once the creditor receives this type of judgment, it may then move forward with its range of remedies. These would include a wage garnishment, bank levy, or placing a lien against your property. So this is why it is important to make an appearance.

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There are certain limitations, but it depends largely on what type of Missouri bankruptcy you wish to file. The two main options are a St. Louis Chapter 7 bankruptcy and a St. Louis Chapter 13 bankruptcy. These chapters have substantive differences in how debt is handled (or whether you would even qualify for one). But the debt limits proscribed by the Bankruptcy Code are very clear.

When you file a Missouri Chapter 7, there are no limitations as to the amount of unsecured debt to be discharged. A Chapter 7 gets rid of these kinds of debts forever, such as credit cards, medical bills, payday loans, deficiencies from a car repossession, gym memberships, and even magazine subscriptions. Once the debts are knocked out, you can immediately begin to rebuild your credit rating as you move forward with life. So if the amount of unsecured debt you are currently carrying is $30,000, or $300,000, or even $3,000,000, it’s all going to get discharged.

There are, however, debt limits in a Missouri Chapter 13. A Chapter 13 is described as a repayment plan over the course of three to five years during which certain debts are paid back. Primary examples of the kinds of things to be paid back would be mortgage arrearage, car loans, tax debt, back child support, attorney fees, and sometimes a percentage of your unsecured debts. If the amount of unsecured debt is above $336,900, then you will not qualify for a Chapter 13. Or if your secured debts (like house mortgage or car note) are above $1,010,650, you again will not qualify under this chapter of bankruptcy. In this kind of situation, you may wish to consider a Chapter 11 bankruptcy (which is described as a reorganization).

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Yes, you absolutely can. In fact, it is rare when such bills are not a part of a bankruptcy. Very frequently, people will have upwards of several thousand (if not tens of thousands) in medical-related bills.

Medical bills (whether they originate from your doctor’s office or the hospital) are described as unsecured debts. Unsecured debts are debts that have no collateral attached to them. In other words, there is nothing securing the underlying amount that you owe. A secured debt (like a home mortgage or car note) does have collateral attached (like the house or the automobile). With a secured debt, if you don’t pay the monthly installment, the remedy for the creditor is to either foreclose on the loan, or repossess the car. But with an unsecured debt, the remedy for non-payment would be to call you relentlessly, and then eventually sue you for breach of contract (and once they get a judgment, they could move forward with a wage garnishment, bank levy, or lien against your house).

But these kinds of debts can be taken care of in a Missouri bankruptcy. In a St. Louis Chapter 7 bankruptcy, all unsecured debts (credit cards, medical bills, payday loans, etc.) are discharged. This means that the creditor can never again demand payment from you, call you, or anyway attempt to collect on the debt ever again; and you will never again be obligated on the debt, to either make any further payments or answer the creditor’s questions. It simply goes away for good.