Daniel Edward Mueller's Answers

How do I get a collection agency to stop calling?

I agree that there is a potential problem in that you did not list the debt in your bankruptcy schedules. However, you may have a Statute of Limitations defense, if it has been more than four years since you last made a payment on the account, not including the time that your Chapter 13 case was active. (Chapter 13 tolls the Statute of limitations, if it has not run out already.) The Statute of Limitations on open-ended accounts, such as a credit card debts, is 4 years in Pennsylvania. The...

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Should I pay taxes/insurance on my home in PA that's now delinquent?

I agree with the previous respondents regarding the taxes and insurance. There is little point in paying the taxes, if you are no longer able to make the house payments. The bank will pay for an insurance policy, if you do not. However, the paying the insurance yourself will ensure that the contents of your house are covered. You may consider speaking to a foreclosure defense attorney. Often the banks do not follow proper procedure during the foreclosure or initial application process, and...

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Collection agency is apptempting to collect on debt that over 10+ years, will have to pay the collection agency?

The Statute of Limitations has almost certainly run on the debt, meaning that it is too late for the creditor to sue you for payment. In Pennsylvania the Statute of Limitations is 4 years on open accounts (such as a credit card), written contracts (such as an auto loan), oral agreements, and promissory notes. (Judgments liens run for 5 years and may be renewed and executed upon for up to 20 years. However, it does not sound like your creditor reduced the debt to judgment.) Generally, the...

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I'm filing chapter 7 and my dad wants to buy me a car soon, should we wait until the case is over?

If you are not making the payments, it should not be a problem. However, you may need to list it in the statement of financial affairs as property held for another person. On the other hand, if you are making the payments, then you may be considered to be the equitable owner of the vehicle. In that case, you must list it as personal property on schedule C. Most likely, the car will not affect your bankruptcy, but you should discuss the matter with a bankruptcy attorney before making a...

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When I get married, could my husband be held responsible for my massive debt?

Your husband will not be responsible for your individual premarital debts. However, you may wish to resolve your debt issues before you marry through bankruptcy or debt negotiation. Although it is possible to file for bankruptcy individually after your marriage, at least a portion of your husband's income will count towards your household income (as a previous contributor pointed out). Nonetheless, if you decide to wait until after your marriage to file, it may still be possible to...

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If I got a notice of judgment against me for an unpaid debt, can they garnish my bank account if its in my wife's and my name?

Generally, a debtor can levy a joint bank account. However, there is no law requiring you to continue to deposit money into that account. Most likely, the creditor knows of the bank account because you paid them from that account (unless the creditor is a bank, and you have your accounts there.) In either case, you may wish to cancel all direct deposits and automatic bill pay, remove your funds from the account, and open up a new account at another bank with which you have never done business. (...

IS IT LIKELY THAT MY CREDIT UNION WILL ACCEPT A REAFFIRM ON MY CHAP 7 AND DOES THE REAFFIRM ALLOW FOR A PERCENT OF THE BALANCE

Most creditors will accept a reaffirmation agreement on the same terms as the original agreement. However, many creditors will agree to a modification of the interest rate and other terms in order to obtain your signature on the agreement. In the case of vehicle loan, some creditors require you to reaffirm the debt in order to keep the vehicle. Many others will simply accept the payments and allow you to keep the vehicle without a reaffirmation agreement. (The lender retains a security...

Should I file for bankruptcy? I have spoken with two lawyers, who gave me different advice and I still cannot decide.

Just FYI regarding student loans, there is proposed legislation in Congress that would make private student loans dischargeable in bankruptcy. However, it is apparently stalled at the moment. Nonetheless, it is possible that the legislation will pass down the road. Also, there is a hardship discharge available for student loans. It is a high hurdle to jump, but not impossible. To qualify for a hardship discharge, you must show that (1) you cannot maintain a "minimum standard of living"...

I live in PA. I am married but not on house deed or mortgage. Can I file chapter 7 without risking the house?

Under the circumstances you describe, you can file for Chapter 7 bankruptcy without risking your home. The personal property you mentioned would be exempt. However, if any of the other $17,000 in debt is joint debt with your husband, he would still be responsible for the joint debts after your liability was discharged in bankruptcy. This is generally not a problem, as the bankruptcy would not appear on his credit report. As to whether you should file, it depends to some extent on how...

Can i have my wages garnish by a credit card company if i am taken to court?

Absolutely not. If you live and work in Pennsylvania, credit card companies cannot garnish your wages. In Pennsylvania garnishment of wages is not permitted, except to collect a judgment issued by a Pennsylvania court for (1) child or spousal support, (2) financial obligations related to a final divorce distribution, (3) student loans under the Pennsylvania Higher Education Assistance Agency Act ("PHEAA"), (4) back rent on a residential lease, or (5) room and board (four weeks or less)....