Bankruptcy and wage garnishment

Submitted by jgt on Mon, 02/22/2010 - 20:25
Forums

I filed bankruptcy in '04 and lost my house due to the economy (both of us were in construction field. I am now in Tenn. I still owe over 20K in credit cards and medical bills. I have been trying to pay little by little, but it is a never-ending battle. Is it a good idea to file bankruptcy again? If so, where? Here in Tenn where I live now or in FL, where I used to live?

If not, can they garnish my husband's wages for the medical bills. It was my medical bill (hospital) in FL. I had no insurance. I live in Tenn presently. I am not able to work due to my back now.

Hi jgt,

Under the statute on garnishment, the head of the family is exempt from wage garnishment. In a marriage, where both the spouse has some income, the person with the greater income is exempt from wage garnishment.

Rather than filing bankruptcy, you can send a letter of hardship to the creditors. Mention that you would like to pay the dues, but is presently unable to continue with the payment process. Thus, you would like to settle the amount. However, you should get all the agreements in writing.

Hope this helps.

Tue, 02/23/2010 - 07:05 Permalink
j g t (not verified)

Thank you Aaron! I really appreciate your input. So it is not a good idea to file bankruptcy again? I had to file Chapter 7 on 2004. I currently owe over 20K now. Do you know what the rules are for filing again?

I do live in a modified storage shed on a piece of property that my parents own. My husband was only able to find work in Texas so we only see each other once a month. It is construction work and you know how that is.

Tue, 02/23/2010 - 17:48 Permalink

Hi jgt,

I understand the problem you are in. However, if you can settle and pay the debt amount, you need not file for another bankruptcy. Bankruptcy adversely affects the future prospect of getting any loans or cards. Moreover, settlement lowers the outstanding debt amount by 40-60%. So, if you think it will be possible for you to pay the settled debt amount you can go forward with the settlement.

However, the rules for filing bankruptcy fort the second time varies according to the type of bankruptcy. You cannot file chapter 7 bankruptcy for a second time if more than 8 years has not passed after discharge of the first one. You cannot file chapter 13 if more than 2 years has not passed after discharge of chapter 13, and 4 years has not passed after discharge of chapter 7, 11 and 12 bankruptcy.

Wed, 02/24/2010 - 10:41 Permalink
crorkz (not verified)

4LPJUZ Really informative post. Great.

Tue, 08/05/2014 - 23:02 Permalink