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Ross M. Mumme

Ross Mumme’s Answers

124 total


  • If I file bankruptcy before I am served in a lawsuit, is the lawsuit considered invalid?

    Would the lawsuit be considered invalid if I haven't been served yet and I file bankruptcy?

    Ross’s Answer

    As Mr. Gambrell has pointed out, the filing of a bankruptcy puts a stop to basically all collection activity including law suits. If the law suit is filed before your bankruptcy is filed, there is no way to remove the law suit from the public record or erase the fact that it was filed, but provided the law suit is to collect a debt that is eligible for discharge in bankruptcy, the law suit will have no legal effect after the bankruptcy discharge and it cannot proceed beyond the point of your bankruptcy filing. I hope this info helps.

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  • I have 5 registration loans and one says I have 30 days to reply or they are filing a judgment

    What does that mean I have 3 kids I couldn't afford anymore to pay on them I don't want to go to jail I really want to settle it but I can't afford it right now what does judgement mean

    Ross’s Answer

    Thanks for the question. You will not be facing criminal charges, only civil liability. A judgment just gives the creditor an opportunity to collect money from you if you have assets that are not exempt. Depending on your overall debt, you should speak with a bankruptcy attorney to see if bankruptcy makes since for you. Good luck.

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  • Can personal loans be exonerated through bankruptcies?

    I loaned a friend of mine some money, and she has not paid it back. I have served her. She responded by notifying me that she is filing for bankruptcy, and that this debt was not being factored into the bankruptcy. I am worried that she will now i...

    Ross’s Answer

    Thanks for the question. Your friend has no choice in the matter. The debt owed to you by your friend is without a doubt a part of her bankruptcy. All debts are included in a bankruptcy. Unless one of the exceptions to discharge apply and assuming the case is a "no asset" case, your debt will be discharged whether your friend listed it in her schedules or not. If your friend chooses to pay you back she can, but unless one of the exceptions applies, you will be prohibited from collecting. You might want to speak to a creditors rights attorney to see if it makes sense to file a proof of claim in your friend's bankruptcy. Good luck.

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  • Chapter 7: Is it ok Not taking the EIC credit as we have in the past two years and max our lawful deductions to zero our refund?

    We are considering not taking the EIC credit this year as we have in the past two years. Also We have no real assets either. Just unsecured debt. Plus we changed our deductions to the max allowed by law and have decided not to take the EIC cre...

    Ross’s Answer

    I would recommend filing your taxes in the same manner you have been for the past several years. If your bankruptcy trustee observes you trying to minimize your tax refund, he/she can amend your tax return for you to claim the EIC. Adjusting your deductions is one thing but passing on the EIC is likely to be an issue. In AZ, the EIC is not exempt. Your post didn't indicate whether you have already filed your case or not but I am assuming you have. If you have not, please consider consultation with an attorney before proceeding.

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  • What constitutes an arrest in AZ for unpaid debt?

    No job, no assets, on disability. I have massive debt- credit cards, medical, with no way to repay. I failed to appear in Mesa court, thus have a judgment against me. Can I be arrested for unpaid debt?

    Ross’s Answer

    You cannot be arrested for failure to pay a consumer debt. Debt collectors will try to make you believe that you can be arrested, to try to intimidate you into paying the debt, but it is not true. If you are ordered to appear and give testimony and you fail to appear, then a warrant for your arrest may result. So don't ignore any such orders. Consultation with a bankruptcy attorney would be something to consider.

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  • I am filing for bankruptcy but withdrew money from my 401k months before. Will I get asked where it was spent

    I withdrew about 50,000 about 5 months ago I used most of the money but do not have receipts on it on this years income tax teturn it shows I wothdrew it and already paid theIrs the penalty will I need to show the trustee exactly where I spent thi...

    Ross’s Answer

    How you spent the money is a question that is quite likely to come up. It would be in your best interest to have as much detail and documentation (ie receipts) to support your explanation for how the money was spent, as possible. If you pulled out all of this money in cash and don't have receipts, expect a big problem. If your bank statements clearly show how the money was spent because you wrote checks and used your debit card, it might not be that big of an issue, depending on what you used the money for. For this one, I think you need a lawyer. Usually consultations are free and you can get some detailed advice on how,
    when, and if you should file bankruptcy. If you have already filed, still best to seek advice of counsel. Best of luck.

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  • If the trustee request tax returns and full refunds be forwarded after discharge, what do you do if the taxes were offset?

    My income taxes were offset by child support arrears so the amount I was refunded is significantly less than the refund stated on the return. I haven't gotten a response from the trustee as to how I should proceed. Do I wait for the offset stateme...

    Ross’s Answer

    I agree with the other attorney responses. Send the refund check, unsigned, with a brief note explaining the offset. Do this right away. Follow up by sending the trustee a copy of the offset letter as soon as you get it.

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  • Co ownership of vehicles, ex wife files bankruptcy...whats the procedure to not be liable for vehicle she took responsibility of

    I was served divorce papers and my divorce was finalized aprox. 2 years ago, Ex wife stated in the divorce papers that she would take ownership of one of the vehicles, and I would take ownership of the 2nd vehicle. She has remarried, purchased ano...

    Ross’s Answer

    If your ex filed chapter 7, her obligation to you pursuant to your divorce decree may not be discharged which means you should speak with your divorce attorney to see about enforcing your rights under the decree. If she filed a chapter 13, her obligation to you pursuant to your divorce decree may be discharged depending on how things are worded in the decree. Either way, the lender on the car can collect from either you or your ex (assuming the car was purchased and financed while you were married and living here in Arizona or another community property state) because the lender's rights are unaffected by your divorce decree. I hope this info helps.

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  • Do statutes of limitations apply to judgements 12 yrs old?

    My employer was served with papers for writ of garnishment for a judgment that is 12 yrs old. The Judgement was a credit card from retailers national bank. I responded with a request for hearing, because I believe this is a time barred case and i...

    Ross’s Answer

    If your employer was served with a writ of garnishment, that means a judgment already exists. A statute of limitations limits the time frame that a creditor has to sue you and obtain a judgment. The law suit need only be initiated before the statute of limitations expires. Judgments are typically valid for a period of time (5 years in Arizona, no idea what the law in Illinois is), and then they expire. But, in Arizona (again, no idea what the law in Illinois is) a judgment can be renewed for another 5 years as long as the creditor renews prior to the expiration date. Hope this info helps.

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  • My question is “If I file for divorce, how will his bankruptcy effect me?”

    My husband and I have been separated for quite some time. He has advised me that he will be filing for bankruptcy but was advised since we are still married that my income will need to be taken into consideration. All the credit cards that he has...

    Ross’s Answer

    It is a little difficult to give you a definitive answer because I don't have all the facts. If you and your husband have no community debt and no community assets at all, his bankruptcy shouldn't impact you much. And I agree with Mr. Berkus that your income need not be included in his bankruptcy of you are living in separate households. If you do have community debt, he will be the only one of you receiving a discharge. Also, if there are community assets, like a car purchased during the marriage, etc., those community assets can be impacted by his bankruptcy filing. Hopefully this info helps.

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