Q: Question about wage garnishments/liens
I am currently gathering all of my information to file bankruptcy. Yesterday, I received a phone call from a lawyer trying to collect a past debt. She says the motion will be filed to serve me tomorrow unless I pay what is due. I do not have the money to pay this by tomorrow. She threatened wage garnishment (i make about $600/month), and threatened to put a lien on my car loan. I am wondering if she can do this? Will my interest rate on my car loan go up? Should I just proceed with bankruptcy or somehow try to handle this? Please help! I need to call her back very soon.
A: This cannot be done without a judgment first. As soon as you file you will be able to discharge this liability. I would move forward with the bankruptcy as soon as you can.
As soon as you file your Bankruptcy case, all collection action stops. So whether this threat and ensuing motion is a "problem" depends on how soon you plan to file. That in turn depends on how soon you can afford to file; whether pro se (without counsel) or via an Attorney.
In any event, the longer you remain outside of Bankruptcy the more damage can be done to your credit and assets, including the repossession of your vehicle, etc. I recommending acting as soon as possible and to take immediate action if possible. Best of luck.
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