Lawsuits, Judgments & Garnishments

Belleville 618.236.7000
Granite City 618.656.7941
Mt. Vernon 888.400.6763

The end result of an unpaid bill is frequently a lawsuit. The victorious creditor will get a judgment against you, which will allow him to garnish your wages or put a lien on something of value that you own, so that he will get repaid as quickly as possible, regardless of the consequences to you and your family at that point in time.

Below are examples of how TBC has stopped lawsuits and garnishments for its clients, and helped them to eliminate the debts they could not afford, or to repay them at an affordable rate. Their names have been changed, but their situations were absolutely real.

Contractor Lawsuit:
Martin is a contractor, who got sued in state court by an unhappy customer. The customer hired an attorney to represent him, but Martin didn´t have the money for an attorney, so he appeared in Court without one. The Judge entered a judgment against Martin, requiring him to pay $175,000.00.

TBC´s Solution:
Martin came to TBC to find out about his options. We were able to file a Chapter 7 bankruptcy for him. The customer once again hired an attorney, but the $175,000.00 debt was wiped out by the bankruptcy.

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Judgement Lien:
Mike was sued by a creditor, and had a judgment lien put against his property. Altogether, he was facing $51,000 in debt. At the same time, he was expecting $3000 in proceeds from an insurance company, which he wanted to use for home repairs.

TBC’s Solution:
Mike´s TBC attorney reviewed his complete financial situation and then presented Mike with his options. He could file a Chapter 7 to get rid of the lien, but he would not be able to keep his insurance proceeds. Or he could file a Chapter 13 and keep the $3,000 in insurance money; however the extra attorney’s fees alone for the Chapter 13 case would be $2,500, and the case be ongoing for a much longer period of time. The client opted for the Chapter 7, discharging $51,000 in debt for $4,348.00 -- $1,348 in court costs and attorney´s fees, and the $3,000 he had to turn over to the Trustee, who used this money to send partial repayment to his creditors.

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Garnishments and Repossession:
Alice fell behind on a couple of her bills, and as a result had garnishments coming out of her check. With less take-home pay, Alice fell into a downward spiral of getting farther behind on more and more bills, including her car payment and some pay day loans. The car she needed to get to work was about to be repossessed.

TBC´s Solution:
Her TBC attorney was able to file a Chapter 13 for Alice, to stop the garnishments being taken from her check, and to prevent her car from being repossessed. Alice paid $325 to get her Chapter 13 filed. Her plan payment of $170 per month was half of her previous car payment, and allowed her to catch up on all of her bills over the course of the Chapter 13.

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Lawsuits and Utility Disconnect:
Rick & Miranda came to TBC to discuss their financial options. They were dealing with three pending lawsuits and a pending disconnection of their utility service.

TBC’s Solution:
Rick & Miranda´s TBC attorney filed a Chapter 7 for them, immediately stopping their three lawsuits and utility disconnection. He also filed a Motion to Continue Utility Service and Set Utility Deposit with the Court.

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Lawsuit and Repossession:
Deborah had filed a Chapter 7 four years ago. Due to continuing financial problems, she was having trouble keeping up with her car payment and her other bills. One creditor had filed a lawsuit, and she was several months behind on her car payment, and facing repossession.

TBC’s Solution:
Although Deborah was not eligible to file another Chapter 7, since she had filed one within the previous eight years, she was eligible to file a Chapter 13, as it had been four years since her Chapter 7 was filed. In order to pay back her creditors what she can afford, and catch up on her car payments, Deborah is paying $400 per month for 5 years.

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Garnishment and Lien Against Home:
Emma was struggling with $45,000 in unsecured debt. One of the credit card companies filed a lawsuit, which would soon result in a judgment that would entitle the creditor to attach a lien against her home and garnish her wages.

TBC´s Solution:
Emma´s TBC attorney determined that she would lose her home in a Chapter 7, as she had quite a bit of equity in it. Therefore, Emma filed a Chapter 13 bankruptcy, immediately stopping the lawsuit and protecting her home and her paycheck. Emma made one plan payment of $300 per month for five years, ($18,000) to eliminate $45,000 in debt.

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Lawsuits and Foreclosure Deficiency:
Jeff was a mortgage loan modification professional who worked as an independent contractor. A year earlier, he had lost his own home to foreclosure, and still owed the mortgage company $48,000 on the deficiency (the difference between what he owed on the mortgage and what the mortgage company was able to get when they sold the house). By the time he came to TBC he had been sued by three of his creditors.

TBC´s Solution:
Jeff´s TBC attorney determined that Jeff qualified for a Chapter 7 bankruptcy. As soon as the bankruptcy was filed, his three pending lawsuits were stopped. The bankruptcy eliminated the deficiency on Jeff´s old mortgage, as well as his other unsecured debt, so that he was once again able to keep up with his monthly bills.

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Child Support, Mortgage and Lawsuits:
Sam was a self-employed plumber who owed $7,000 in back child support. He and his wife, Adrian, were several months behind on their mortgage payments and were fearful they would lose their house and vehicles. They had also been sued by one of their creditors.

TBC’s Solution:
Sam & Adrian scheduled an appointment with a TBC attorney several days before the hearing for their lawsuit. They decided to file a Chapter 13 bankruptcy, and they were able to immediately bring in all of the necessary documents and fees, allowing TBC to file their Chapter 13 just in time to stop the lawsuit. The back child support was paid through the Chapter 13 plan, along with the arrearages on their mortgage and their cars. By the time their case completed, Sam & Adrian had paid off the child support and the arrearages on their house and cars, and were able to move on with their lives.

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Don't wait until till it may be too late to seek protection under the bankruptcy law. Schedule a FREE Consultation with one of our bankruptcy attorneys and learn how the bankruptcy law applies to your specific situation. Call TBC today at 618-236-7000 (Belleville, IL) or 618-656-7941 (Edwardsville, IL).

Memberships & Associations

memberships

Belleville Location

The Bankruptcy Center
5312 West Main Street
Belleville, IL 62226
Tel: 618.236.7000

Granite City Location

The Bankruptcy Center
2021 Johnson Road, Suite 1
Granite City, IL 62040
Tel: 618.656.7941

Mt. Vernon Location

The Bankruptcy Center (In the US Bank Building)
123 South 10th Street, Suite 202
Mt. Vernon, IL 62864
Tel: 618.236.7000

Disclaimer

The Law Offices of William A. Mueller is a debt relief agency, helping people file for bankruptcy relief under the Bankruptcy Code.