Pending foreclosures- filing for Bankruptcy can stop the sale of your home instantly. A Chapter 13 petition in bankruptcy will allow you to catch up back payments on your home. You are allowed up to 60 months to repay the missed payments. An example would be if you are $6,000 behind on your mortgage payments, the Bankruptcy Court would allow us to file a plan in which you could pay $100 per month for the 60 months. As long as you are able to make your regular house payments and pay the $100 each month, the court would not allow the mortgage company to foreclose on your home.
Repossessions - Bankruptcy will stop them immediately. Upon the filing of a bankruptcy petition the law immediately requires that all action taken against you be stopped. The creditor may not take your car. If your car has already been taken, we may be able to get it back. You must file a petition in bankruptcy before it is sold. In Virginia, a creditor is required to give you at least 10 days to redeem your car before it can be sold at auction. Often some creditors will move your car to a distant location and require that you provide proper insurance, pay all storage and towing fees as well as pay to have it returned before it is released to you.
A garnishment is a court order directing that money or property of a debtor be seized to satisfy a debt owed by the debtor to a creditor.
For bankruptcy purposes lets examine two types:
1. A wage garnishment is one that allows creditors to legally require your employer to hand over part of your earnings in order to pay off a debt.
2. A non-wage garnishment is one that allows the creditor to place a levy on your bank account and requires that the bank take funds from your account to pay the creditor in full.
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