Ziegler Diamond Law: Personal Injury and Debt Attorneys

Garnishment is when a company you owe can reach into your bank accounts or paycheck and legally take your money. Except for the government, creditors can't garnish you when you first fall behind. They have to first file a lawsuit, serve you with the lawsuit, and win a judgment before the law allow them to garnish. The limited exceptions to this rule is if you have a loan with a bank but you also have a bank account with them, they're usually allowed to exercise a right call ""set off"" to take the money in that account (so you might want to move your account to another bank). Even after a creditor has a judgment, you might be able to get the money back and your wages protected if you qualify for any of a number of protections, such as Head of Family, Tenancy by the Entirety, Social Security and VA benefits, or if the account is holding someone else's money.

Most people I work with need their car to get to work and take care of their family, but in some instances, a person who files for bankruptcy may have to give their car up as part of the process. So here are the facts: In a Chapter 7 bankruptcy case, the trade-off for getting rid of your debts is that you are limited on the assets you can start over with. For filers who have resided in Florida for several years, the allowance for a vehicle is $1,000 in equity in the vehicle. Additionally, filers who do not own their home may also be able to access an additional allowance called the ""wild card"" to protect an additional $4,000 in equity in the vehicle. Even if a vehicle isn't in the allowances, there still may be strategies to hold onto the vehicle, including a 'buyback' agreement or by looking at a different debt resolution option. Questions about whether you can keep your car? Call today.

Chapter 7 is what we call a ""liquidation,"" meaning the paperwork is filed and after a review period, the debts will be ""discharged"" (wiped out). There's no monthly payment in chapter 7; however, the filer's commitment for wiping out their debts is that they are limited on the amount of assets they can keep. The government tells us if you're going to get a fresh start on your debts, then you should have a fresh start on your assets as well. In Chapter 13 bankruptcy, the filer is committed to a payment plan for a 3-5 year period of time. There are a number of factors that go into the payment plan, but for most filers, it's based on what they can afford to pay. Choosing between chapter 7 and chapter 13 usually resolves around the ""means test."" The means test is a calculation which says that if you make a little more money and can afford it, that you should pay a portion of your debt

Our law firm is different because we don't exclusively look at bankruptcy attorneys, debt litigation, or debt consolidation; we use all of these tools to evaluate which option is in the client's best interest. Debt consolidation and chapter 13 are similar in that they are both payments plans that usually result in the reduction of debt. But the payment options are calculated differently and there can be different legal impacts. Which option is better will depend on individual circumstances, but some important questions to help evaluate the options are: What is the person's income? What types of bankruptcy do they qualify for and what would be their out-of-pocket commitment in a bankruptcy case? What is the expected resolution in debt consolidation? What are there risks for each option? If you have questions about which option may be in your best interest, schedule a complimentary consultation with one of our qualified attorneys.