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The Consumer Financial Protection Bureau (CFPB) issued a report finding that one-in-five borrowers who take out a single-payment auto title loan have their car or truck seized by their lender for failing to repay their debt. According to the CFPB’s research, more than four-in-five of these loans are renewed the day they are due because borrowers cannot afford to repay them with a single payment. More than two-thirds of auto title loan business comes from borrowers who wind up taking out seven or more consecutive loans and are stuck in debt for most of the year.
“Our study delivers clear evidence of the dangers auto title loans pose for consumers,” said CFPB Director Richard Cordray. “Instead of repaying their loan with a single payment when it is due, most borrowers wind up mired in debt for most of the year. The collateral damage can be especially severe for borrowers who have their car or truck seized, costing them ready access to their job or the doctor’s office.”  Read more..
A picture of a carnivore feeding on its prey comes to mind when reading the statistics on auto title loans.  Those who can least afford to loose and replace their vehicle are hostage to title loans that roll over time and time again, make the overall loan in excess of the value of the vehicle and/or the allowed limits on interest rates in the state where the borrower lives.
I understand an animal hunting to survive, but I do not understand the greed in the hearts and souls of those lenders who make loans knowing that 80% of the borrowers cannot pay the loan and will have to roll one loan into another.  My hope is there is a special place in the after life for these folks.

The post Auto Title Loans One in Three Default, One in Five Repossessed appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.

If your wages are being garnished, or you know they will be, filing an Elkhorn Chapter 7 Bankruptcy will most likely stop the wage garnishment. An Elkhorn Chapter 7 Bankruptcy stops most wage garnishments because the moment you file a bankruptcy petition, an automatic stay immediately goes into effect. The bankruptcy laws are designed to protect you, and an automatic stay does just that.
 
What Is An Automatic Stay?
An automatic stay protects you from creditors. The bankruptcy law requires most creditors to stop all collection activities against you during the automatic stay because your monies, assets, and property are now part of the bankruptcy estate and some portions may be exempt under bankruptcy law. Creditors are not allowed to garnish your wages, attach liens to your property, repossess assets, foreclose on your property, call you, or send you collection letters during the automatic stay.
It is important to note that not all collection activities are subject to the automatic stay. There are certain collection actions that may still proceed during an automatic stay. These may include: criminal actions, child support, certain evictions, certain taxes, court proceedings for traffic violations, domestic violence issues, divorce proceedings, spousal support payments, and paternity law suits.
You also may be given a shortened automatic stay or no automatic stay at all if you have filed multiple bankruptcy petitions in a short period of time. If you filed for Chapter 7, 11, or 13 Bankruptcy during the past year, and the bankruptcy was dismissed, the automatic stay will end in 30 days. However, you can submit a good faith motion to the bankruptcy court to extend the automatic stay. If you had two pending bankruptcy cases in the past year, the automatic stay will not be issued at all. If this is your second bankruptcy within a year, talk to your Elkhorn Chapter 7 Bankruptcy attorney to learn more about filing a motion to extend or initiate your automatic stay.
It is possible for a creditor to ask the bankruptcy court to lift the automatic stay. Creditors who have liens on your property are the creditors most likely to ask the bankruptcy court to remove the automatic stay, although any creditor has the right to ask the bankruptcy court to remove it. The creditor must show good cause for requesting that the automatic stay be lifted.
 
How Do the Appropriate People Know to Stop Garnishing My Wages?
When you complete your Elkhorn Chapter 7 Bankruptcy petition, you will list all of your creditors, along with their addresses. Each creditor that you list will be notified by the bankruptcy court that you have filed for an Elkhorn Chapter 7 Bankruptcy and that an automatic stay is immediately in effect. The creditor must then make every effort to stop all collection activities, including your wage garnishments. Because the court will notify all creditors, you do not have to do anything, but you can always send a copy of your court stamped bankruptcy filing to the creditor garnishing your wages, the sheriff’s office, your payroll department, and any bank processing your wage garnishment.
 
What If My Wages Are Garnished After Filing An Elkhorn Chapter 7 Bankruptcy?
This should never happen, but if it does, notify your Elkhorn Chapter 7 Bankruptcy attorney immediately. The bankruptcy court may penalize creditors who violate the automatic stay and do not return the property or monies seized. You may be rewarded damages and attorney fees if a creditor violates an automatic stay and you win a court hearing against them.
 
If I File an Elkhorn Chapter 7 Bankruptcy, Can I Get Back Wages Garnished Before I Filed?
It may be possible to retrieve wages which were garnished prior to filing an Elkhorn Chapter 7 Bankruptcy. If certain criteria are met, you could be refunded wages garnished within 90 days prior to your bankruptcy filing. Speak with your Elkhorn Chapter 7 Bankruptcy attorney to find out if you meet all criteria and if this is a wise decision for you.
 
Once My Elkhorn Chapter 7 Bankruptcy Case is Finished, What Happens to My Wage Garnishment?
Once your Elkhorn Chapter 7 Bankruptcy case is heard before the bankruptcy trustee and completed, the automatic stay ends. If the debt that was being recovered by means of wage garnishment is wiped out during the bankruptcy proceeding, then the creditor cannot continue to garnish your wages. This will most likely be the case. However, if your bankruptcy case is dismissed or the debt being recovered by means of wage garnishment is not wiped out during the bankruptcy proceeding, then the creditor can continue to garnish your wages.
 
Speak with an Experienced Elkhorn Chapter 7 Bankruptcy Attorney
Wynn at Law, LLC has a 100% bankruptcy success rate. If you are struggling financially and need to stop wage garnishments, an Elkhorn Chapter 7 Bankruptcy may be right for you. Our knowledgeable Elkhorn bankruptcy attorney can discuss with you ways to stop wage garnishment with and without bankruptcy. Contact our Elkhorn bankruptcy attorney to discuss all of your options by calling 262-725-0175 or by visiting our website’s contact page.
 
Find out if you qualify for bankruptcy.
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*The content and material on this web page is for informational purposes only and does not constitute legal advice.
 

As these economic times get tougher and tougher for debtors, I am confronted on a weekly and sometimes daily basis regarding their plight. In the most recent case, a debtor was having a difficult time making his rent payment and was concerned about being evicted. He then remembered that he had hired an attorney four+ Read More
The post Attorney Fee Concept Often Difficult For Clients To Grasp appeared first on David M. Siegel.

Bankruptcy is a legal proceeding to either wipe out the debts you owe or pay the debts back at a lower rate. Filing a bankruptcy can sometimes be the best way to handle overwhelming debt but how do you know … Continue reading →
The post How Do I Know When I Should File Bankruptcy? appeared first on Vonda S. McLeod, Attorney at Law.