Here is my situation, i was getting ready to file for bankrupcy because i've fallen so behind on my accts there is now way i can off my debt, especially now that i went from a 60k a year job to a 27k job. My father told me not to file for it b/c most of these acct will come off my report in 2011-2012 (7year rule). and the bankrupcy stay with you 10 yrs, and from what i understand it stay on your report forever(public record) is he correct?
Also i have a jugdement agaist me for a cycle loan that was totalled and loan defaulted. i'm in NC so i know my wages can't be garnished but what about my tax refund? i know only child support, taxes, and college loans are what the IRS will garnish but i've read in other sites about a "setoff" where they basically trace your direct deposit and take it out of your bank? is this true?
Yes, bankruptcy may stay in your report for about 10 years and affect your credit score badly and so if you are able to pay off your debt, it is better that you do not file bankruptcy. You can contact your creditor and try to find out a settlement plan and pay off the debt. Moreover, you should first check out the statute of limitation for the debt. If the statute of limitation has expired, you need not pay back the debt and the creditor cannot not do anything to recover the debt once the SOL has expired.
Hi Oscar
It is true that in North Carolina wage cannot be garnished except for outstanding Federal tax and alimony and child support obligations, but your bank account can be garnished and so you should pay off the judgment amount in order to avoid garnishment. The creditor can trace your bank account through your social security number and can deposit a copy of the judgment order with the bank to start garnishing your account.
this judgment was passed back in july of 08, i was never served b/c i assume they have the wrong addrss. if they wanted to garnish my acct they would have done so don't you think?
If they want to garnish your bank account, they they can start garnishing your account anytime. If they have not garnished it yet they have 5 years time in hand from the date the judgment has been passed to start garnishing your bank account, because the Statute of Limitation on judgment is 5 years in North Carolina.
So the statute of limitations is different on judgements than it is on collectin delinquent debt? what happens if the five years passes and they do not collect...do they lose the right to collect or can they refile for another judgement?
i ended up going to an very good attorney, and i settled with the lender for a lesser amount. also had it erased from my report
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