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David Prelle Eron
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David Eron’s Answers

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  • Our business owes around 4 months rent, but we don't have the money, if we file chapter 11, will stop the landlord case?

    the court after tomorrow, what if the judge evicts us?we need to delay the move out another month or 2...this company almost dead,we are looking for the best solution to remain another 2 months in the location, and if we get money we need it to m...

    David’s Answer

    Though this question has been amply answered, please note that filing a bankruptcy case for the sole purpose of obtaining the benefit of the automatic stay can be construed as a "bad faith" filing. Dismissal for filing cases in bad faith can carry rather draconian consequences. I mention this only because posting questions like this on a publicly accessible forum may not be the wisest course of action. Seeking the advice of counsel in private where the attorney-client privilege will apply is the best way to go when in doubt.

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  • Chapter 11 in central ca district court

    Thinking of a possibility of filing chapter 11 in CA, I heard of atty fees of about $ 11,000, is this correct? to low?or too high?

    David’s Answer

    My fees in chapter 11 cases generally range for $25,000 on the low end to well over $100,000. And I mainly handle chapter 11's for individuals and small companies (debts/assets under $10,000,000). Large business cases require substantially more time and money. I require initial deposits of at least $20,000 for a chapter 11 case. The court filing fee alone is $1,717. Simply stated, $11,000 will get you through the first month at best.

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  • Should I get another lawyer in the middle of my Chapter 13 bankruptcy?

    My husband and I filed for Chapter 13 Bankruptcy in December '13. Initially our lawyer asked us what we could pay towards our debt on top of our car loans. The amount that we ended up paying monthly to the trustee is at least double. Our income...

    David’s Answer

    There may well be ways to improve your situation. Changes in income and expenses may change the amount of your plan payment. A second look at your plan, schedules, and means test may also reveal errors. There may be other solutions as well. On the other hand, it may be that things are simply tight because by design a chapter 13 requires you to pay any "excess" income to your creditors. I typically charge a $200 fee for a "second opinion" and would be happy to have you set an appointment with my office for that purpose. If your case does merit a change in approach, I typically require a $1,000 retainer deposit for taking over a chapter 13 case. Ultimately, the Kansas Rules of Professional Responsibility require that your attorney maintain adequate communication with you. That said, if your attorney has already explained the basis of the plan payment and nothing has occurred to change that analysis, the Rule do not require your counsel to continue communicating the same thing.

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  • What can I do to stop my wages from being garnished?

    I filed for bankruptcy in 09. My first mortgage was discharged but the second was reaffirmed. We had to leave our home and it has since gone into foreclosure. Now the second mortgage company wants to garnish my wages, more than I was even payin...

    David’s Answer

    You need to consult with bankruptcy counsel. An attorney fee only chapter 13 is a very real possibility. Feel free to contact me for a free consultation.

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  • How long can the mortgage company seek payment once the loan has defaulted?

    Home was awarded to ex-husband during the divorce. He failed to re-finance after the divorce and he defaulted on the laon. (I am still legally responsible by the bank) How long can the bank seek payment from me due to the foreclosure/default? Can...

    David’s Answer

    • Selected as best answer

    Before a court judgment is entered, they will have 5 years from the date of the last payment or written acknowledgement of indebtedness. That is the period of time for filing a lawsuit. After obtaining a judgment, they will have an unlimited time to collect, as long as they comply with the procedures for renewing their judgment. Collecting on a judgment can include procedures for levying bank accounts and other assets, and garnishing wages. A bankruptcy can be used to eliminate the liability. I strongly recommend that you speak with an attorney as the laws can be difficult for a lay person to understand.

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  • Facing 500.00 per month wage garnishment, do I have any options?

    A lawyer representing a hospital took me to court and stated my only option was to either pay 300.00 a month or they will garnish 500.00 a month from my pay checks. Trying to pay for college here and 300.00 a month is cutting my budget rather steep.

    David’s Answer

    I agree that bankruptcy is the obvious answer. Would depend on a number of other factors. Please feel free to contact me directly for a consultation to discuss whether it would make sense in your case. Happy to help.

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  • I had a title load with citifinancial using my old cadillac as colateral. I filed chapter 13 and agreed to give them the car.

    Because of the age and actual value of the car they didnt want it. So it sits in my driveway. Can I get the title back since there wasnt any payment agreement made for them in the chapter 13 or what. Citifinancial told me to apply for a lein avo...

    David’s Answer

    Technically you don't have legal grounds under the bankruptcy code for avoiding the lien. This is more of an equitable thing. If they won't repossess the car, you will be stuck with the taxes, etc. So, as the previous writer suggested, file a motion with the court to avoid the lien. Talk to your attorney about this issue. Since Citifinancial probably didn't file a proof of claim, or otherwise appear in your case, certain rules will apply about how you serve them notice (it will probably have to be the same way you would serve summons).

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  • When a parent is put in an assisted living unit, are the children responsible for outstanding debts?

    The parent only receives social security and has no other assests.

    David’s Answer

    You must agree to be bound in one form or another, or have a court order that you take responsibility for your parents. The law does not automatically impose liability for a parent upon a child. It can work in reverse and can also work between spouses under the doctrine of necessities.

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  • I was in a accident two years ago and still cannot pay off the debt because i had no insurance at the time. what can i do

    low income, three kids, and im a single mother in school, paying off 20,000 dollars or even coming up with the 1000.00 deposit is out the question

    David’s Answer

    A bankruptcy could work, but if you have no income, it may be premature. If you are judgment proof, it can often be a better choice to wait this out. Feel free to contact my office for a consultation to discuss your situation.

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  • Can Kansas garnish my SSI check for state taxes or take my checking account after it an automatic deposit?

    They took 100% of my husbands check Friday and we would be at the food bank if I didn't save stuff. We are waiting on word from his HR on how much the garnishment is supposed to be.

    David’s Answer

    They can certainly garnish payroll and levy bank accounts. SSI is very questionable as it is exempt under federal law. That exemption does not apply to the federal government itself. If you owe state taxes, you should seriously consider filing a chapter 13 case. Discuss your specific situation with an attorney. I would be happy to assist you if you call me, or I could provide you with a referral.

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