QUESTION
If a credit card company has froze my bank account because I have not paid them in over 1 year and a half now can I file cheaper 7?
Asked on Jan 10th, 2013 on Bankruptcy - New Jersey
More details to this question:
I only owed about $12,000 now it's up to $17,000. I don't own a home. I have my car paid off and don't want to lose it. It is worth about $10,000. I owe about 9,000 in other credit card debt. Can I still file chapter 7 if a court has already ruled for the plaintiff and they froze my account? Also I lost my job and am starting a new one and only make $300 a week? That was most of the reason I could not pay it back. I do not know what to do and I have been doing as much research as I can. They took what little mine I had and all my paycheck are direct deposit into that account. Are they going to keep that money as well?
8 ANSWERS
Personal Injury Attorney serving Reno, NV
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Law Offices of William D. Cope, LLP
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First I would change banks and yes you have the right to file bankruptcy and most likely discharge or credit card debt and any other debt to the bank. Also, you have exemptions to protect certain assets like your vehicle.
Answered on Jan 15th, 2013 at 12:04 PM
Chapter 7 and Chapter 13 Bankruptcies Attorney serving Dublin, OH
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Granger Law Firm LLC
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You can proceed with a Chapter 7 filing. The freezing of your bank accounts will not prevent you from proceeding with a bankruptcy.
Answered on Jan 14th, 2013 at 4:45 PM
Tax Controversy Attorney serving Bellevue, WA
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Ortiz & Gosalia, PLLC
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Yes, you can still file for bankruptcy and the credit card debt would be eligible for discharge (there are a few exceptions). You should be able to keep the majority if not all of your assets by using the federal exemptions based on the information contained in your email. The credit card company will continue to garnish your wages until the debt has been satisfied.
Answered on Jan 14th, 2013 at 4:45 PM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Yes, you most certainly can file for a chapter 7. If you file before the return date on the bank garnishment, you should be able to get the money that is in there back.
Answered on Jan 14th, 2013 at 4:37 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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It is still possible to eliminate the debt in bankruptcy, even though the creditor has already obtained a judgment against you and froze your account.
Answered on Jan 14th, 2013 at 4:25 PM
Having a court judgment does not by itself disqualify you from being eligible to file Chapter 7 bankruptcy or to eliminate this debt from bankruptcy. You should immediately file a claim of exemption to protect the portion of your bank account that came from wages. Once money is taken by a creditor to pay a court judgment, it may be impossible to recover.
Answered on Jan 14th, 2013 at 4:24 PM
If you get your Chapter 7 bankruptcy filed before the funds are actually removed from your bank account you should be in good shape. In New York you have the option of using the federal exemptions, which include a $3,450.00 exemption for equity in a vehicle and a "wildcard" exemption of $11,975.00 that can be applied toward anything. Using your vehicle exemption and a portion of your "wildcard" should protect the vehicle from the Chapter 7 Trustee's reach, and the remaining "wildcard" will protect up to $5,000.00 (approx.) in your bank account. If the funds are already seized before the bankruptcy is filed, but the seizure occurred within the 90 day period prior to the bankruptcy filing, the funds can be recovered as a "preference". However, unless the creditor cooperates, recovering the seized funds would require the commencement of an Adversary Proceeding in Bankruptcy Court, and the additional legal fees associated with such litigation could possibly exceed the amount that you seek to recover, making such an action impractical. If you want to pursue a Chapter 7 filing please arrange to speak to competent bankruptcy counsel ASAP, before the funds are actually removed from the account.
Answered on Jan 14th, 2013 at 4:23 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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My recommendation is that you get to bankruptcy attorney in your jurisdiction as soon as possible. Yes, you can file, and your counsel can see if the money has been frozen or turned over. The fact that they have a judgment does not mean that you can not file.
Answered on Jan 14th, 2013 at 4:19 PM