Need help with possble bankruptcy?: Hi, my 25 yr old daughter was in a car accident in which she didn't have enough insurance for the other driver's inflated medical bills. That driver has an uncle who is an attorney who is suing my daughter for more than $25,000 (they are even making up a 4th passenger who wasn't even there) . My daughter only carried a small amount of medical payout amount on her ins. ($10k per passenger) The ins can only pay out the max but this attorney wants more (for a fender bender). My daughter only makes $30k after taxes and can barely afford her rent. A wage garnishment would leave her unable to pay rent and homeless. Can a bankruptcy attorney help us? Is there any exemption or small payment plan for this large judgement she is about to get against her? She will have to attend court alone as she can't afford those kind of attorney fees. Any help would be appreciated!
Mark’s answer:
Yes, this is something with which a bankruptcy can assist. It would be far less expensive than any payment plan she would negotiate for the payment after a judgment is entered.
I suggest that she schedule a consultation with a bankruptcy attorney to discuss her options.
Does a Declaration of homestead in CA prevent a judgment lien from attaching to the homestead?: Can a judgment creditor perfect a lien against a property, with a recorded Declaration of Homestead, when the amount of the judgment is less than the exemption amount, such that discharge of the judgment debt in BK would be uncomplicated by the additional requirement of the judgment debtor to strip the lien?
Mark’s answer:
You're asking two opposing questions. A Declaration of Homestead merely gives you the ability to sell your property voluntarily and to be paid your homestead exemption in that sale ahead of any judgment liens which are recorded AFTER you record the Homestead Declaration. It does not apply to involuntary sales of the property.
Can a judgment lien be perfected with a homestead declaration recorded? Yes, of course. The lien may be removable in a bankruptcy if certain criteria are met depending on the value of property, amount of exemptions available, and amount of other liens against the property.
Midland funding placed a lein on my house from 2014. how do i get it removed?:
Im trying to get a loan and midland funding placed a lein on my house from some old credit card debt.
It says placed in 2014 from a debt from years ago
Mark’s answer:
I am assuming this is a judgment lien. If so, that can be removed in bankruptcy if you meet certain mathematical criteria. It depends on the value of the property, the amount of all liens and mortgages against the property, and the amount of the homestead exemption to which you are entitled under California law (assuming California exemptions apply in your case).
Bottom line is you should have a consultation with an experienced bankruptcy attorney to get the specifics and determine your options.