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Shelly Crocker

Shelly Crocker’s Answers

123 total


  • We have business debt that forcing us to file of chap 7. Will we required into a payment plan ? or just liquidate our assets?

    - the debt was due to a failed commercial property. After fore closure, we still owed about 1Million of deficency. - We are making about 200K per year. - Will Chapter 7 (business) only liquidate our asstes? or do we still have to make payment ...

    Shelly’s Answer

    • Selected as best answer

    One thing the prior answers overlook is that a "business debtor" can often qualify for Chapter 7 relief even if they earn too much to be a "consumer debtor." If the deficiency is your primary obligation, and it totals more than half of your total debt, you could qualify to be a "business debtor" and you can use a Chapter 7 case to liquidate your remaining non-exempt assets and receive a discharge. In that case, you would not have to make payments of your future earnings.

    I would urge you to seek the help of a qualified bankruptcy lawyer before you make a decision about how to proceed. Good luck to you!

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  • Help with filing bankruptcy

    I am legally separated and currently on long term disability through my former employer. I am supporting a family of four and desperately want to file bankruptcy. I can't keep up with my medical bills. I have but one c card that i defaulted on, bu...

    Shelly’s Answer

    Call the King County Bar Association for a referral, and ask about the Debt Clinic. A lawyer at the Debt Clinic will meet with you for free and help you decide what you need to do. You may not need a bankruptcy if you are "judgment proof." Good luck!

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  • I am in foreclosure and the trustee has postponed the sale several times. I have since filed CH7. How long can I postpone?

    I have understood that if the foreclosure has been postponed longer that 120 days then the trustee must start over. Is that true?

    Shelly’s Answer

    Depending upon the particular stage your Chapter 7 is in, the trustee will have to seek relief from the automatic stay to hold the foreclosure sale. Generally, the stay is lifted when the discharge is granted. If saving your house is your primary concern, you may want to investigate whether a Chapter 13 (either by conversion or after the Chapter 7 is complete) is in your best interest.

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  • Our Ch 7 has been discharged but our attny says the trustee did not file an NAR- & wants another retainer to address this.Yikes.

    We don't mind paying for services, but we're a little lost and not getting answers. We own and live on our business property and are current on the mortgage. We hoped to retire, and tried to sell it to prevent the bankruptcy but could not find a b...

    Shelly’s Answer

    It sounds to me like the trustee might be investigating the value of your business and its property, and that a gentle nudge from your attorney might be all that is needed. Your attorney should have provided you with a written engagement letter or fee agreement at the beginning of the case, so you can see what is covered under that agreement. Certainly, you should be able to get your questions about your case answered. Good luck to you!

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  • Bankruptcy and Post-Divorce Debt on Credit Card acquired during Marriage

    Washington State-Community Property (and debt) State. I acquired a credit card in 2006, while married. I ran up a substantial balance (>20K). We then divorced in Feb 2008. I was ordered to pay the credit card in the divorce decree. I paid off...

    Shelly’s Answer

    Although I agree that your ex-wife should not be liable for the debt, your question is a good illustration of the importance of opening new accounts after a divorce so that there is no confusion by the creditor.

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  • A construction company going bankrupt owes me 1,200.00. Is it worth filing a claim?

    if so, would I need an attorney?

    Shelly’s Answer

    Filing a claim is fairly straightforward. You can find a proof of claim form on most bankruptcy court websites, or the attorney for the debtor should provide you one. If you have a general unsecured claim, just fill out the form and attach invoices. If there was a contract, you can attach that. The form will have instructions about where to send it, or you can call the Clerk of the court where the bankruptcy was filed and ask if you can mail it in. For the price of a stamp and a few minutes filling out a form, it seems worth the trouble. On the other hand, it is rare that there are any assets to distribute to creditors in these construction cases we are seeing. Good luck to you.

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  • Should I file bankruptcy or try debt consolidation??

    I've had my home foreclosed upon in San Antonio, Texas. I've also had multiple credit cards that have been sent to collections and have other assorted bills in collections as well. I obviously have had a rough few years and am trying to rebuild my...

    Shelly’s Answer

    We often are asked whether debt consolidation can work, and our experience has been that many of the so-called debt consolidation services are shams. Watch for large upfront fees or percentage-based fees, which are strong indicators of a potential for abuse.

    On the other hand, an individual can only file bankruptcy after they have received consumer credit counseling from an approved agency. The United States Trustee's Office maintains a list of approved agencies. We have had very good luck with Consumer Credit Counseling Northwest, ClearPoint, Hummingbird, and the LFI, but others are good too. We have found them to offer an honest assessment of whether they can help with a debt repayment plan. If they say that bankrutpcy is a better option, then you would want to speak with a bankruptcy lawyer. Many firms will offer a free consultation to help you decide if bankrutpcy is right for you. Our website has additional information.

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  • Can a creditor come after you in they repossessed your boat but want what they didn't make on it.

    We had a boat in minnesota and became unable to repay our debt. They repossessed our boat and auctioned it off for a considerable loss. They now what us to pay the diffeerence and they haven't given us a breakdown of charges. They have said we can...

    Shelly’s Answer

    The short answer is "yes." Unfortunately, you do still owe what is known as the deficiency once the collateral has been sold. They are required to give you an accounting of the debt and the sale results and costs. There is a very good debt collection firm in Minnesota. I'll attach the link below. Bankruptcy can be a good solution. We have some general information on our site, www.resolvelegal.com, but you will need a local attorney to either help resolve the issue or file for bankruptcy. Best of luck to you.

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  • Can the mortgage company come into my home and winterize it and change the locks before the foreclosuer sale

    my was to be sold on courthouse step on 2-2-09 but our mortgage co agreed to redo our loa . We were informed of this on 1-23-09 over the phone. They said the foreclosure had been stopped and that we would receive our new loan papers to sign befo...

    Shelly’s Answer

    You should locate a HUD housing counselor in your area immediately to help document you loan modification. We have seen instances of mortgage companies failing to follow through on modifications. Whether the lender has violated the law is most likely determined by the language of your mortgage. Some documents and some state statutes do permit what is known as "re-entry" to "protect" the property. We have represented clients in just this situation, but unfortunately it is not an easy road. You will definitely need the help of a lawyer or a housing counselor in your area. Try your local bar association for a referral, or any local legal aid society. I really wish you all the best of luck. Be persistent and keep calling people until you get some satisfactory answers.

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  • Can a creditor garnish our wages if our only income is social security disability, can we get the money back

    my husband [name removed] was Garnish for 2100 we both are on SSA disabilty this money was taken out of our bank account . Can they legal keep the money since we Share the acct and it is basicly in my name. but on December 11,2008 they went in o...

    Shelly’s Answer

    You will need help from a lawyer to protect this money, and you need to act quickly. You probably should try to contact the Northwest Justice Project. They offer free legal assistance to some people. I posted their web address below, or call 211 and get a referral from the King County help line. Good luck to you.

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