QUESTION

Now that this is dismissed, can they just reopen the garnishment or do they have to go back to court?

Asked on Dec 04th, 2016 on Bankruptcy - Colorado
More details to this question:
I just had my Chapter 13 bankruptcy dismissed. I went into Chapter 13 a year ago to help with a few debts I had and a garnishment that was just started on a very old Credit Card and a horrible car loan with 30% interest where I was paying $600 a month. The garnishment was immediately stopped when I filed. I paid almost $700 for a year to chapter 13 and thought my lawyer had everything in great shape. I told him I was moving to another state and my income would decrease with state tax and rent/utilities etc. would be much higher. He said we could modify. When I moved 4 months ago, he said that I couldn’t change anything. So here I am with $400 more a month in rent/utilities and state taxes I could not afford the payments. My car loan that I had for 5 years now was extend another 5 in the Chapter 13 and the cram down he explained wasn't really what I understood it to be. I had my chapter 13 dismissed last week for non-payment. The judgement the load company had to garnish my wages in the other state was stopped by the Chapter 13. I now live in another state and state law does not allow garnishment on Consumer debt. Will the garnishment hold up here in another state? My employer is in my previous state and I work remote here. Do the state laws apply to my wages or will they go by the other state’s law because my employer is there? I contacted GM and let them know that I will turn in the car. I am now at 5 years into this loan on a car that was a total lemon and still is and somehow still owe $20,000 plus. The original loan was something like $32,000. I have no idea how that can even be possible. When they sell the car at auction and come back to me to sue for the difference that I owe, would the state laws apply with consumer debt or the other state’s law since I purchased the car there?
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2 ANSWERS

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You have asked 3 questions which appear to be related. So I am only going to answer one of these questions to save you some time. While you were in Chapter 13, you were protected from creditor action. Now that your Chapter 13 no longer protects you, you are vulnerable. Your current financial situation will indicate whether you should file another chapter 13, whether you can now qualify to file Chapter 7, or whether you might be able to settle this or other debts for a lump sum of cash. Offering you an answer requires details that you cannot reasonably provide in an online forum.
Answered on Jan 25th, 2017 at 5:19 PM

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When your Chapter 13 is dismissed, you are back to where you were on the date of filing. Creditors can peruse legal remedies against you.
Answered on Jan 25th, 2017 at 5:18 PM

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