FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

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Creditors and separation

My husband and I recently separated (not legally yet and not sure yet).

We are trying to pay off credit card debt – are are seriously behind – we have no cash flow, and no borrowing power – but lots of equity and are trying to sell off real estate to settle debt – therefore trustees recommended not doing a proposal or bankruptcy but to continue to hold off creditors until real estate sells – as we would end up in a better position financially.

My question is:

If I inform the creditors that we are separated – are they likely to be more – or – less aggressive – or does it matter.

Also

If I continue to hold off creditors till the real estate sells – what’s the worst that they can do – can they garnishee my husbands pay?? I have been communicating with them -re my intent to pay once real estate sells, or our tax refund comes in.

thanks

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One Response to “Creditors and separation”

A licensed trustee said...

You may want to go back and talk to your trustee again. In the past, we have filed proposals for people that called for small monthly payments while we waited for a house to sell and then a large payment from the proceeds. Based on what you have written, I am uncertain why your trustee asked you to wait until the house has been sold.

Regardless, until you file, your creditors have the right to pursue you by means of collection agents or the Court. In order to garnishee your ex’s income, they must obtain a Court order first, but it is not a complicated procedure.

I don’t think telling your creditors that you are going through a separation will make any difference – they have heard it all before and at the end of the day, what they want is to be paid.

Good luck sorting things out.