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Would I be better off with wage garnishment?

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sinebar
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Would I be better off with wage garnishment?  Reply with quote  

My take home pay is $750 a week. I am not married and have no children. I have a lot of unsecured debt I want to get payed off. At 25% wage garnishment that would leave me $562.50 a week but if I stopped payment on all my bills except of course the essentials, I think I would be way better off just letting them garnish my wages. Then with money I normally apply to a lot of debt I could apply to one bill at a time until it's pay off then start on the next. The key here is that only one creditor at a time can garnish wages. Does this sound like it would it work?

My other question concerns my cars. I have two cars. A 2002 Toyota Echo and a new 2012 Toyota Yarish. The Echo is payed for but I'm still paying on the Yaris. My state exemption for equity is $5600. The Echo is not worth that so I know creditors could not take it but since its not my only car does that change things?
Post Sun Aug 12, 2012 2:02 pm
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oldguy
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Last week you were going to form an LLC and hide your funds there?

Now you want to stiff your creditors and go wit garnishment?

You seem to be approaching this in an adversarial manner, as if your lenders are your enemies. Remember, you went to them and asked them to loan you money - and they did - so why are you so mad at them?

Why not just stop living large - and just live on what you earn? Your salary appears to be about $60,000/yr - I'm wealthy & retired, but I doubt that I spend that much.

Why don't you sell the 2012 car and get that $4000/year car payment stopped before it drags you under? The Echo is an excellent car, they normally run past 200,000 miles with no troublss. Then use that extra $4000 to pay back your loans.
Post Sun Aug 12, 2012 3:59 pm
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sinebar
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quote:
Originally posted by oldguy
Last week you were going to form an LLC and hide your funds there?

Now you want to stiff your creditors and go wit garnishment?

You seem to be approaching this in an adversarial manner, as if your lenders are your enemies. Remember, you went to them and asked them to loan you money - and they did - so why are you so mad at them?

Why not just stop living large - and just live on what you earn? Your salary appears to be about $60,000/yr - I'm wealthy & retired, but I doubt that I spend that much.

Why don't you sell the 2012 car and get that $4000/year car payment stopped before it drags you under? The Echo is an excellent car, they normally run past 200,000 miles with no troublss. Then use that extra $4000 to pay back your loans.


These forums are for intellegent exchange of information not a platform smart assness and sarcasm. Please don't respond to anymore of my posts.
Post Sun Aug 12, 2012 5:04 pm
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oldguy
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What makes you think I was being sarcastic? You obviously are having trouble understanding the time-value of capital. And I have BTDT, I understand wealth-building, that is how I became wealthy. And I have observed that one of the most commom symptoms of financial failure is cars - people use them as status markers rather than for transport. You mentioned a 2012 car - an obvious barrier to wealth.

An intelligent exchange on your part would be to learn some answers from someone who has the answers.
Post Sun Aug 12, 2012 5:50 pm
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coaster
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mod's note  Reply with quote  

There is a related thread posted by the OP of this thread:

http://www.money-talk.org/thread21487.html

Forum rules require treating other members with respect. One of the posts in this thread treads very close to the edge of that rule. Proceed with due respect, please, or this thread will be closed.

~Tim~
Post Sun Aug 12, 2012 6:01 pm
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clydewolf
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Re: Would I be better off with wage garnishment?  Reply with quote  

quote:
Would I be better off with wage garnishment?

No, you would not be better off.
quote:
Originally posted by sinebar
My take home pay is $750 a week. I am not married and have no children.

That is a very decent take home pay. There are families that live on half that amount.
quote:

I have a lot of unsecured debt I want to get payed off. At 25% wage garnishment that would leave me $562.50 a week

So take that amount and pay it toward your debts. That is certainly something you can do yourself. You do not need the courts or someone else to tell you how. But first you need to stop adding to or accumulating additional debt. Spend less than you make is a sure fire way to financial success!
quote:


but if I stopped payment on all my bills except of course the essentials, I think I would be way better off just letting them garnish my wages. Then with money I normally apply to a lot of debt I could apply to one bill at a time until it's pay off then start on the next. The key here is that only one creditor at a time can garnish wages. Does this sound like it would it work?
NO.
quote:


My other question concerns my cars. I have two cars. A 2002 Toyota Echo and a new 2012 Toyota Yaris. The Echo is payed for but I'm still paying on the Yaris. My state exemption for equity is $5600. The Echo is not worth that so I know creditors could not take it but since its not my only car does that change things?

Sell the YARIS, and then use that money to pay your debts.
You only need one car, one insurance payment, one maintenance headache.
Sell the Yaris!

Spend less than you earn. Pay ALL of your bills on time.
You can do this yourself.
Post Sun Aug 12, 2012 7:08 pm
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sinebar
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Re: Would I be better off with wage garnishment?  Reply with quote  

quote:
Originally posted by clydewolf
quote:
Would I be better off with wage garnishment?

No, you would not be better off.
quote:
Originally posted by sinebar
My take home pay is $750 a week. I am not married and have no children.

That is a very decent take home pay. There are families that live on half that amount.
quote:

I have a lot of unsecured debt I want to get payed off. At 25% wage garnishment that would leave me $562.50 a week

So take that amount and pay it toward your debts. That is certainly something you can do yourself. You do not need the courts or someone else to tell you how. But first you need to stop adding to or accumulating additional debt. Spend less than you make is a sure fire way to financial success!
quote:


but if I stopped payment on all my bills except of course the essentials, I think I would be way better off just letting them garnish my wages. Then with money I normally apply to a lot of debt I could apply to one bill at a time until it's pay off then start on the next. The key here is that only one creditor at a time can garnish wages. Does this sound like it would it work?
NO.
quote:


My other question concerns my cars. I have two cars. A 2002 Toyota Echo and a new 2012 Toyota Yaris. The Echo is payed for but I'm still paying on the Yaris. My state exemption for equity is $5600. The Echo is not worth that so I know creditors could not take it but since its not my only car does that change things?

Sell the YARIS, and then use that money to pay your debts.
You only need one car, one insurance payment, one maintenance headache.
Sell the Yaris!

Spend less than you earn. Pay ALL of your bills on time.
You can do this yourself.


No, you would not be better off.[quote]

Why not?
Post Sun Aug 12, 2012 7:46 pm
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oldguy
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quote:
Keep in mind that even if all of the equity in your car, van, motorcycle, or other automobile is exempt in Chapter 7 bankruptcy, you still might lose the car to the lender of your car loan.


Is that $5600 a Fed CCPA car exemption or a Georgia exemption? Or another state? You have a large loan on the new Yaris so the lender will take the car. (according to the above quote). But if you sell the car and use the proceeds to clear the loan, you will get way more money (than if you allow the car to be repo'd & whole saled).

Instead of going thru the bk and making your credit worse than it is now, you can volutarily pay about 25% of your income to your lenders. That saves you the cost of a bk, lawyers, etc - and keeps you solvent.

But in either case, you need to sell the car. Then it should be fairly easy to pay off the other loans. With your $60,000 income, pay about $20,000/yr to your lenders. There are families of four living on less than $40,000, you are single, it's not that hard to do.
Post Sun Aug 12, 2012 8:54 pm
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sinebar
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quote:
Originally posted by oldguy
quote:
Keep in mind that even if all of the equity in your car, van, motorcycle, or other automobile is exempt in Chapter 7 bankruptcy, you still might lose the car to the lender of your car loan.


Is that $5600 a Fed CCPA car exemption or a Georgia exemption? Or another state? You have a large loan on the new Yaris so the lender will take the car. (according to the above quote). But if you sell the car and use the proceeds to clear the loan, you will get way more money (than if you allow the car to be repo'd & whole saled).

Instead of going thru the bk and making your credit worse than it is now, you can volutarily pay about 25% of your income to your lenders. That saves you the cost of a bk, lawyers, etc - and keeps you solvent.

But in either case, you need to sell the car. Then it should be fairly easy to pay off the other loans. With your $60,000 income, pay about $20,000/yr to your lenders. There are families of four living on less than $40,000, you are single, it's not that hard to do.


I'm so upside down on the Yaris I would have to come up with a huge amount of money to make up for the difference and I don't have it. I don't want to file bankruptcy. Instead I want to take all the money I would normally pay on all my debt and apply towards one creditor. That way I could pay off one creditor pretty fast. Then when that one is payed off I start paying on another and so on untill they are all payed for. Its my understanding that only one creditor can garnish wages at a time. That means that the others can't until the first one is done which would be a long time in my case. That would give me time to pay off the others while one is garnishing me. That's why I think a garnishment would actually work to my advantage since I make a decent wage.
Post Sun Aug 12, 2012 9:50 pm
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oldguy
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First you have to get judgements filed against you, then the Courts can garnish.

But it doesn't help you - the minimums on your individual loans isn't much more than the garnish, it just means that you have to write a few checks. And dragging the loans out by paying one at a time will add lots of interest to the other loans. (Lenders won't loan money to you for free while they wait for you to pay other loans).

But the important one is to get rid of thecar. It is losing $4000/yr in value just sitting there.
When you sell an upsidedown car - first you advertise and find a buyer. Then set-up a meeting with you, buyer, lender. The buyer gives his check to the lender, the lender gives the title to the buyer, and he give you a personal loan for the shortfall. (I've done this - & your lender has done it many times - it's not hard). As I said, that will get the bleeding stopped, that $4000/yr or $5000/yr bill goes away. And then you apply it to the loans. BTW, what did you buy with the borrowed money - can you sell any of it?
Post Sun Aug 12, 2012 10:31 pm
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