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Neil Sader
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Neil Sader’s Answers

38 total

  • What should one expect to happen in court after receiving a summons for credit card debt?

    Wanting to know how everything will happen in court. What should one say or not say.

    Neil’s Answer

    While I agree with much of the prior answer, I hope the following is helpful. If you agree you owe the money, you are free to call the attorney for the plaintiff and ask for a workout plan. It's possible to enter into an agreement that might even allow the case to be dismissed. It all just depends, however, this is also something an attorney can handle for you and may very well be worth the expense. Good luck.

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  • I am four years and 10 months into a chapter 13 bankruptcy second mortgage has been charged off.

    4 years and 10 months ago we filed for a chapter 13 bankruptcy. At that time we were told that everything would be included in the bankruptcy,in five years we would be done. I have just found out that the second mortgage has received only $134.7...

    Neil’s Answer

    There are a number of items that need to be addressed before a definitive answer can be given. Among the questions:
    1. Did the Mortgage Company file a proof of claim and was it reviewed for accuracy?
    2. Did you evaluate the possibility of stripping the lien? When the case was filed, was the home worth less than the amount owed on the first? If so, the lien might be able to be stripped.
    If you have a lawyer, you should evaluate these questions with that person. If you have no lawyer, you ought to engage one quickly. There may be other issues worthy of attention too.

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  • Past Bankruptcy / Current Taxes

    In 2012 we had to file Chapter 7 Bankruptcy due to extensive medical bills, and our home was included in this. The home has recently sold to another buyer. This year we received a 1099-A saying that the amount that was not paid needed to be report...

    Neil’s Answer

    It depends on whether you reaffirmed the debt. If you file Chapter 7 and own a home, you must decide whether to reaffirm the debt. If you do, you sign an agreement and its filed with the Court. If you do that, you are once again fully liable for the balance and if you later have a portion of the debt forgiven, you will receive a 1099. If you do not reaffirm, then any amount forgiven is not taxable. Hopefully you made this decision knowing all the ramifications.

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  • Should we file our back taxes we owe, and go to court for a debt collection before or after we do a bankruptcy?

    My husband and i haven't filed our taxes for 2011 2012 and 2013 we owe about $7000 and now we have creditors suing us too. My husband is 80% disabled veteran 60% from PTSD and I am bi polar. Mentally we both just shut down when it became too over...

    Neil’s Answer

    The advise I give to clients on this topic can be summed up as follows: it is NOT against the law to be unable to pay your taxes; however it is against the law not to file your return. Please file your returns asap, there is no down side.

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  • How do I remove a satisfied judgment from my credit report?

    The judgment was for child support which has long been satisfied.

    Neil’s Answer

    While you may have paid or satisfied the judgment, did you ensure that the person or office you paid filed a satisfaction with the court where the judgment was entered? If you failed to follow up and make sure at the time of payment the payee filed the appropriate satisfaction on the record, the fact you are having a problem now comes as no surprise. The good news is that if you did make the payment, it is not too late to have that person file the satisfaction. Good luck!

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  • Bankrupctcy

    will law firms fill out bankrupctcy forms when you pay the fee but don't use them for representation?looked up forms on line co fills them out for a fee but I file them with the court myself.do you think that's a good idea?

    Neil’s Answer

    No... it is not a good idea. The forms may appear self-explanatory but they are not. Missouri has limitations on exemptions that deal with homes, cars and even personal property. There are consequences if secured debts, liens and reaffirmation agreements are not properly dealt with. Missouri Trustees requests additional information beyond the forms and knowing how to respond is important. My fellow counsel who answered your question were too polite to tell you the truth. There is a great variety of attorneys out there... some charge relatively little. Shop around and treat your financial life with some respect.

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  • Can Missouri head of family exemption be used in a Joint chapter 7 bankruptcy case?

    My wife and I are filling Jointly, we have two dependents. Can we use the head family exemption in addition to our wildcard?

    Neil’s Answer

    • Selected as best answer

    As a Missouri attorney I can confirm for you that you may use the Head of Household exemption under Missouri Statute 513.440 in addition to the wildcard exemption under 513-430.1(3). You can use the Head of Household for a total of $1,950. Best of luck.

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  • Can I request a continuance for a lawsuit brought against me for an unpaid credit card bill?

    I have court in two days and have yet to secure a lawyer to review my options. I definitely do not want my wages garnished. I'm hoping I can secure a bit more time to receive consultation from a lawyer and assess my options!

    Neil’s Answer

    To me, it sounds as if this is not a small claims case. Most credit card collection cases are in Associate Circuit courts in Missouri. Typically, at the first court date you may appear and ask the Judge for a continuance in order to to retain counsel. If this is your first such request, it should easily be granted. A 30 day continuance is pretty standard. Good luck and make sure to retain counsel as quickly as possible.

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  • Can a man reissue a garnishment even when I'm almost done paying it off? What can i do to stop this?

    This man has been garnishing my wages for almost a year. Both of my jobs are paying him. But one of my jobs is taking the money and sitting on it to pay him in full. He is trying to garnish me again and get more money. This man is greedy and keeps...

    Neil’s Answer

    If he has not received full payment yet, he can re-issue the garnishment. However, in no way is he entitled to receive more than owed. So, if more is taken out of your check than owed you need to carefully watch when he receives payment in full and then ask the court to terminate the garnishment remaining. One alternative at this point would be to pay the remaining amount owed and make sure the remaining garnishments are stopped. You are also entitled to have him file a Satisfaction of Judgment when the matter is resolved.

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  • If i plan to reaffirm only the first lien, can the second lender foreclose on my house?

    I plan to reaffirm only my first lien during my Chapter 7 bankruptcy. Can the second lender initiate foreclosure proceedings (even though I will be making timely payments) or the only consequence is having to pay off the second lender at the time ...

    Neil’s Answer

    I will assume you are trying to determine whether after you receive your Chapter 7 discharge a second lien holder on your home can foreclose if you failed to reaffirm that second lien. The answer is if you fail to pay the second, post-discharge that lien holder retains the right to foreclose, however, it's ability to pursue a deficiency balance after foreclosure is gone. By not reaffirming, you have protected yourself from any deficiency owed in the event of foreclosure. Keep in mind it is unusual for a second to foreclose since to gain ownership at the foreclosure sale it would have to payoff the first plus any taxes owed.
    In the event the value of your home is less than the first mortgage, you could look at filing Chapter 13 to strip off the second and actually have the lien removed. A Chapter 13 is available even right after filing a Chapter 7 in many circumstances.

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