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Date: November 10, 2009
Host: Michael D, Siegel View Transcript | Archive Index For All Legal Chats Bankruptcy is traumatic enough as it is, what with facing financial ruin and dealing with a roller coaster of emotions, without adding the mind-numbing details of the bankruptcy code to sort out. Join Michael Siegel, an attorney who deals with bankruptcy and other credit issues, on November 10th at 10 PM Eastern (9 Central, 7 Pacific), to get your bankruptcy or other consumer credit questions answered.
MICHAEL SIEGEL practices in the fields of bankruptcy, consumer rights, commercial litigation
and real estate. His main office is in New York City, and he maintains an office in Jersey City,
New Jersey. Michael spent eight years representing large institutional creditors at large law firms in New York City and New Jersey. Now a partner at Siegel & Siegel, P.C., Michael represents mostly individual consumers and businesses. Michael is a graduate of the University of Chicago Law School. He is admitted to the bars of New York State and New Jersey, as well as the Federal Courts in New Jersey and the Eastern and Southern Districts of New York.
http://www.lawyers.com/siegelandsiegel Live Chat Transcript mister_n: "I own a rental property in FL due to a job relocation (NC - where I currently rent). My mortgage is an 80/20 split and is currently underwater. Every month I struggle to pay the several hundred dollars it takes to make up the difference between the mortgage + fees and the rental income--the rental market has dramatically decreased over the past couple years. After reviewing my financial future, I cannot see a way out of this mess unless I either foreclose or somehow convince the lenders that a short-sale is the best for all parties. My principle lender is currently working towards a loan modification, but my fear is that any modification will be just a bandage job on an inevitable foreclosure as I cannot afford for the property to be vacant for even a month (wages have been severely cut at work). I have never been late on a payment and plan to stay current with all of my other debts. I'd like to know what the best path to take would be??"
ladypep: "garnishment paper were filed and obtained at my residence on sept 28 2009. judge defaulted me on the 19th of october. i called court to complain they vacated the default until the 28th but did not follow through with employer. I get paid bi-weekly. I called creditor before the 28th and he agreed to take payment in full on the 29. However he did not follow up with the courts and I am still being garnished. I'm mad and 173.00 short on my pay check. What legal persuit do i have with the creditor and the courts."
Michael D. Siegel: "Hi shae. Please post."
shae16: "I spoke to you a month or so again and I have submitted my bankruptcy petition to the courts and all went well. not a single mistake thanks to you answering my questions but I have a few more questions"
Michael D. Siegel: "ok."
shae16: "when I filed my income was only unemployment benefits and starting on monday I start a new job. will that overqualify me for chapter 7"
shae16: "do they consider wages after you file in your income ratio"
Michael D. Siegel: "Did you have your 341 meeting yet."
shae16: "not until dec. 4th"
Michael D. Siegel: "What is the filing date of your petition."
shae16: "dec. 30th"
shae16: "sorry oct. 30"
Michael D. Siegel: "The means test looks back at the six months before filing. Thus, you do not have a change to that. Technically, the trustee could move to convert your case to Ch. 13 on the ground of "cause" based on your higher income. thus, the means test does not get changed. When you get to your 341 meeting, the trustee will first ask if there are any changes to your papers. You will note that there are no changes as of filing, but that you now have a job. It should not be a problem, but I have had aggressive trustees if your income is over the median with the new job who have made an issue of it on occasion."
shae16: "well then here is a question"
Michael D. Siegel: "Obviously, it is better to have a job. The key is to play it straight with the trustee. Concealing a job goes to credibility, and you do not want to risk that."
shae16: "my husband makes 1700 base income and 1400 in housing allowance and food allowance with the military and I will be making 3000 per month only until jan and then it drops to 2k a month. they pay me more for training. does that bump me over the median income for family of 3 in texas"
shae16: "i don't want to conceal the job however I am tempted to state my average monthly will be lower than the 3k since it drops in jan."
Michael D. Siegel: "I am an NY lawyer. I have no idea what the TX median is. I would think not, but you only need to visit this issue if it becomes one. You can get a lawyer at that time. State your pay as you stated it here. Do not lie. If the trustee asks for pay stubs, you need to be accurate."
shae16: "ok another question"
shae16: "in the bankruptcy i would like to reaffirm my car lease since it is so inexpensive and we need the extra vehicle. they did not allow me to include a reaffirmation agreement in the original paperwork submitted when i filed. when do i file the reaffirmation aggreement"
Michael D. Siegel: "The leasing company will prepare it, and send it to you to sign. The leasing company will file it. Each company has their own form"
shae16: "oh so they must get notification of the bankruptcy and then do they try to contact me to question whether i want to reaffirm the debt"
shae16: "i am so afraid they are going to take my car when I am willing to keep paying the lease"
Michael D. Siegel: "Keep paying. They will not take your car. They want your money more than your car back. They will contact you."
shae16: "will i also have a reaffirmation agreement that I have to do on my leased apartment"
Michael D. Siegel: "No. Landlords are not that savvy. Again, just keep paying. they want your money more too."
shae16: "ok great. I plan on keeping paying. i just wanted to make sure that I am not missing paperwork that needs to be turned in and then I get evicted and lose my car. :) I am a detail fanatic and I hate the waiting game until the 341 meeting. I feel like there is more i should be doing or that I missed a form somehow"
Michael D. Siegel: "Finish your financial management course. The court and/or trustee will let you know if they need anything else."
shae16: "I did the pre-filing financial course and I understand I have a pre-discharge course but am I supposed to wait until after the 341 meeting to do the pre-discharge course"
Michael D. Siegel: "No. You can do the course now."
shae16: "ok perfect i will do that so it is over with since the other one is done"
Michael D. Siegel: "Good luck"
shae16: "Thank you for your advice. I hope all goes well and it gets discharged quickly so we can just move forward!"
Michael D. Siegel: "You are welcome"
Michael D. Siegel: "I will now do the 2 preposted questions."
Michael D. Siegel: "mister_n: "I own a rental property in FL due to a job relocation (NC - where I currently rent). My mortgage is an 80/20 split and is currently underwater. Every month I struggle to pay the several hundred dollars it takes to make up the difference between the mortgage + fees and the rental income--the rental market has dramatically decreased over the past couple years. After reviewing my financial future, I cannot see a way out of this mess unless I either foreclose or somehow convince the lenders that a short-sale is the best for all parties. My principle lender is currently working towards a loan modification, but my fear is that any modification will be just a bandage job on an inevitable foreclosure as I cannot afford for the property to be vacant for even a month (wages have been severely cut at work). I have never been late on a payment and plan to stay current with all of my other debts. I'd like to know what the best path to take would be??""
Michael D. Siegel: "A short sale is only good if you are not going to be liable for the shortfall. Call the bank and see if they will work with you. Another option is a deed in lieu of foreclosure, which is the classic handing the keys to the bank. If you just let things go, you will find yourself responsible for a shortfall on the foreclosure proceeds, which will be problematic."
Michael D. Siegel: "ladypep: "garnishment paper were filed and obtained at my residence on sept 28 2009. judge defaulted me on the 19th of october. i called court to complain they vacated the default until the 28th but did not follow through with employer. I get paid bi-weekly. I called creditor before the 28th and he agreed to take payment in full on the 29. However he did not follow up with the courts and I am still being garnished. I'm mad and 173.00 short on my pay check. What legal persuit do i have with the creditor and the courts.""
Michael D. Siegel: "You do not say what state your are in. Collection procedures vary by state and county. Obviously, a creditor can only collect once. It may be the money is with a Sheriff or Marshal. If so, you need to contact them. You need to file a satisfaction of judgment form with the court once payment is made. Then, you can make a motion for return of suplus payments if the creditor got the money in addition to the amount of the judgment."
Michael D. Siegel: "That brings us to the end of the hour. I will be back in 2 weeks. Until then, use the message boards on this site."
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