Bankruptcy I have a 120K judgement (from a foreclosed mortgage) against me, wage garnishment and credit debt.?
I have a judgment against me from the second mortgage holder on an investment house I bought that was foreclosed on. The first mortgage company foreclosed and sold the house (in Nevada) at auction. The second mortgage company didn’t get settled thru foreclosure because of some law in Nevada so they came after me and won the judgment 120K. Now they have garnished my wages and I am barely making it (Single income, three kids high rent in So. Cal) I do not have ANY assets, and do have large credit card debts and reside in California. I was asked if the judgment was non-dischargeable- it does not say non-dischargeable.
Is it my only solution to go bankrupt(not credit consultation nor counseling)
1) I’m not sure if I which chapter I should file under.
2) I do not have money for a highpriced lawyer- what are my options? (I have found flat rate attorneys and cut rate bankruptcy specialists)
3) What questions should I ask of prospective legal help before I commit to one service/attorney?
Oh, more info, the home was bought on little down with our very good credit. There was no equity in it but was in an area of high rising appreciation (three years ago). But one day the developers of the housing tract lower the prices of the newest tract accross the street. They cut the price of the new identical homes by 100,000 dollars. We found our investment home devalued by 100,000 overnight and had aprox 90k in negative equity. We were previously renting it for a 300.00 a month loss- banking on quick equity by appreciation.
2 Responses
Patrick
11 Feb 2010
chatsplas@sbcglo
11 Feb 2010
You took this $120,000 out of your investment home and did what with it?
The foreclosure laws state that a first mortgage being foreclosed on, wipes out all junior liens, thus your 2nd.
Often you can get a free or lowcost consultation with an attorney to discuss your options.
Chapter 7 gives you a fresh start. However if you have alot of expensive toys or material possessions they may want to grab them. They list your material assets at fire sale value (garage sale priced) and your allowed to keep a certain amount of assets and cash. I was stressed out financially for a couple of years and when I decided to let go, things got alot better. No more chest pains, phone calls, sleepless nights……My lawyer cost 1,700…..bankruptcy for dummies is a great book, answers alot of questions. Grab an attorney that comes highly referred. Your first meeting with him/her is usually free, you can get references from attorneys that don’t handle bankruptcies so ask your friends for a name of a good lawyer, then call them and ask them to refer you to a good bankruptcy attorney. If you have alot of assets……non retirement assests (because those are protected), then you may have to file chapter 13 which would help you reorganize your debts and set up a plan to pay them back at a reduced amount and interest rate. Good luck to you…….remember you can’t take it with you, so don’t let it take you to that place.