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Douglas Gist Farquhar

Douglas Farquhar’s Answers

75 total

  • Should I file jointly with my Husband?

    My Husband is in the process of hiring a lawyer to file Chapter 7. What are the pros and cons of filing/not filing jointly with him? I have about $8k in credit card debt that has gone to collection. I recently started an LLC in my name alone, t...

    Douglas’s Answer

    $8,000 is possibly low for you to justify a filing of bankruptcy but that depends upon your income. If you can't pay this debt then you might want to file bankruptcy.

    You could jump on board with his bankruptcy and you would then most likely get rid of that debt.

    You do have to report your LLC as an asset in the case but if there are no assets owned by the LLC and it is just basically an empty shell then it would not be hard to exempt it.

    You should meet with your husband's attorney or hire your own. It would be cheaper to file jointly with him.

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  • Can a credit card collection agency freeze or garnish my checking account if my only deposit is old age social security benifit

    I'm 78 yrs old and unable to continue paying on my credit card due to lack of funds

    Douglas’s Answer

    I agree with the others that they cannot garnish or freeze your bank account that contains your social security payments. Call the bank if you are concerned.

    On of my clients did this and the bank assured her that they could not and would not freeze or allow the siezure by a creditor of her social securtity funds deposited in her bank account even if the creditor was armed with a garnishment order.

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    My husband and I filed Ch 7 Bktcy, and was DISCHARGED August 2005, PRIOR to the Bankruptcy Reform of 2005. At the time, we were living in an RV/Fifth-Wheel, that was owned by Fifth Third Bank. We continued to make payments on the RV, eventhough we...

    Douglas’s Answer

    From what you have writen here it appears that this Fifth wheel vehicle was listed in your bankruptcy and the debt associated with it was discharged and no reaffirmation was signed yet the creditor is still trying to collect on the debt.
    To make matters worse this creditor is threatening you with jail if you don't pay. This appears to be a violation of the Fair Debt Collection Practices Act. A collector cannot threaten to take any action (like imprisonment) that cannot be legally taken according to the act. Nor can they threaten any action that they have no intention of taking.
    Also there is a bankruptcy discharge violation. If this collector is indeed attempting to collect on a debt that was discharged in bankruptcy then that is a violation of bankruptcy laws.

    Both issues need to be addressed and I agree with you when you said that you need a San Diego attorney.

    Phone: (619) 702-5015, E-mail:

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  • I rec'd a debt collection letter from a law firm in CA for an three year old credit card debt with US Bank.

    The original debt is with US Bank for $12K and have been through 1 collection agency already. Apparently it was sold to a second collection agency and this law firm represent them. I sent a debt validation letter the same day but, out of curiosi...

    Douglas’s Answer

    Assuming the debt is valid you could have an attorney try to settle the debt for you. If a bankruptcy attorney who represents you negotiates with the creditor then the creditor might realize that there is a chance that you could file a chapter 7 bankruptcy. If you did file and get a discharge then the creditor would probably receive nothing.

    This sometimes helps to get creditors to agree to a settlement that would be more beneficial to you.

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  • My husband has a unemployment overpayment charge with penalities

    if we file bankruptcy on the overpayment and they dispute it can we file a chapter 13 instead of chapter 7 and if i file chapter 7 can i file just the amount i was overpaid and not the penalties and pay them back on the penalities what are the ch...

    Douglas’s Answer

    I have not faced this question but I did a quick google search and the consensus out there among attorneys seems to be that this debt is a dischargeable debt in bankruptcy. It becomes a unsecured debt which a 7 will wipe it away if you are not currently receiving unemployment any longer.

    If you are still receiving unemployment then the overpayment will be deducted from future payments by "recoupment" and apparently this can not be stopped by a bankruptcy.

    I would read about this online and then call an attorney in your area and tell him what you discovered and see if the attorney agrees that this is a dischareable debt.

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  • Can chapter 7 or chapter 13 be cleared out after 7 years?

    My friend told me bankruptcy either chapter 7 or chapter 13 will remain permanently in records, is it true? If it is true, how can one need it to be removed?

    Douglas’s Answer

    I see there is a disagreement here. I believe that it is 10 years before the bankruptcy completely drops off the credit report but it is also true that you can re-build your credit score within a much shorter period with the right moves.

    I believe significant improvements can be made to your score within 2 years after you file if you take out new credit cards, use them (make charges each month), keep balances low (below 50%), and pay on time each month. You can even pay the full balance each month.

    Also get several cards to do this with and charge things you would buy anyway like groceries and gas. You can even pay bills with them and then turn around and pay off the credit card online.

    If you do this diligently you should re-build your score rather quickly after bankruptcy. Good luck!

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  • I owe business credit card $35,000 max limit, I cannot afford to make minimum payment, will my business be foreclosure by bank?

    I spent $25,000 of my business credit card and $10,000 personal credit card, but I cannot afford to make minimum payment because of my business is too slow. Can the bank of credit cards foreclosure my business?

    Douglas’s Answer

    I agree with what the others said. The credit card companies will probably eventually sue the business for the debt if it remains unpaid. If you signed a personal gurantee then they could sue you too but yes credit card debt is unsecured and they can't "foreclose" on the business.

    For bankruptcy advice on whether to file for the business, you personally, or both it would be best to contact an attorney to get legal advice once all the facts are known.

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  • Bankruptcy attorney in San Diego

    Looking for a bankruptcy attorney in San Diego to help ASAP. Was served with a summons on April 8 (left on my door). I don't have a lot of money as I am struggling financially and looking for some discounted help. Any suggestions??

    Douglas’s Answer

    I would call a bankruptcy attorney in San Diego right away so you can understand your options and protect your rights. There are alternatives to bankruptcy but it is best to file an answer to the lawsuit in a timely fashion if you are not going to file for bankruptcy. You do not want to this creditor to get a default judgment which is what will happen if you don't file an answer timely.

    (619) 702-5015.

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  • We might need to file Bankruptcy but I need to pay back the money I owe from my aunt in different country.

    I an buying money order and mail it to her.(That's what we have been doing in the past) But I just read that if I pay more than $600 to a commercial creditor within 90days, bankruptcy trustee can take the money back... I need to send her money now...

    Douglas’s Answer

    Be careful! There are stategies to get the money to her without violating the rules against recent payments to insiders. One strategy would be to wait to file the bankruptcy until a certain time period has elapsed.

    The rules for transfers of money or payment of debts prior to bankruptcy are a bit complicated so it is best to contact a bankruptcy attorney to make sure you are doing the correct things and so you can discuss strategies wiith the attorney.

    You are allowed to send money to relatives and it is possible that your aunt would not be considered a creditor but I would have an attorney go over it with you to make sure.

    She is probably considered an insider so if she was considered a creditor (which she may not be) then you would have to list the payment in your bankruptcy if you filed within the next year.

    Douglas G. Farquhar, Esq. (619) 702-5015.

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