Malik W. Ahmad

Archive for April, 2011|Monthly archive page

How to stop wage garnishment in Nevada?

In Loan Modification, Nevada Loan Modification attorney Malik Ahmad on 04/24/2011 at 5:07 pm

As we had stated many times, when someone file Chapter 13 or Chapter 7 bankruptcy petition, any pending garnishment (except for child support) will stop immediately. It also control any funds seized after the date of your bankruptcy filing will be returned to you.

How about Judgment Entered Against You
State Court Judgments Can Result in Significant Seizure of Your Income

In most cases, wage garnishments arise from lawsuit judgments. There cannot be any wage garnishment in Nevada except child support and student loan without a judicial process. For everything else, a judicial process is required. The judicial process means you have be issued a summons along with a complaint for which you have a right to confront and appear in a court of law. Judgments come from lawsuits and after you lose or ignore lawsuits. For example, if a credit card company filed suit against you for non-payment and you did not answer, a default judgment would issue against you. These judgments do not disappear into thin air but stays and the judgment/creditor waits for an appropriate time to pounce against you just like cheetah in a jungle who wait endlessly to prey on the animals. If you were involved in litigation and lost, a judgment would issue against you. These judgments can be executed personally against you or your business, and the judgment creditors is watching your assets or searching for them and the appropriate moment to execute against these assets.

It is not surprising that our clients many times report that they were not even aware of a pending lawsuit, much less a judgment. This is possible as the judgment creditors might be a different entity than the original lender and this credit transactions has been sold and resold many times, and the final holder are entirely different people now. This type of unpleasant surprise happens more often than you might think. Sheriff’s deputies, who are responsible for serving the lawsuit, are permitted to leave the lawsuit with an adult who answers the door to your house. This is also called personal service in Nevada. We sometimes see cases where a spouse accepts service but fails to deliver the lawsuit papers to the named defendant. Also, these papers can get mixed up with lots of other papers and one just ignore them or do not understand the implication of these judicial papers. I had seen many many times the original papers and the client does not even know what kind of papers are they and their purpose.

Most of these cases revolve around credit card debt. As you may know, the cardholder agreement provides that payment disputes shall be referred to an arbitrator out of State, or that a specific court in another State shall be the venue for any collection lawsuit. These collections needs to be validated and usually requires 30 days time period. Defending a lawsuit is not an easy thing, it is expensive, time consuming, and basically you have no defenses other than the statutory time period, if you had used the money and is not paying it back to your creditors. Also, it is quite possible that the original paperwork may be lost or is not transferred to the current credit holder. If your creditor possesses an out of state judgment, it can “domesticate” the judgment in your home county. Once a judgment is domesticated here, you will be subject to wage garnishment, bank account levy and any other remedies otherwise available to a winning plaintiff here in Las Vegas.

Wage Ganishment Threatens 25% of Your Net Pay and Possibly Your Job
Once a judgment has been issued, your creditor can ask the local sheriff’s office for a summons for continuing garnishment and execution of judgment. Your employer will be served with this garnishment summons and ordered to withhold 25% of your after tax earnings. In addition, your employer may charge a handling fee for the extra paperwork involved with fulfilling the garnishment requirements.
Be aware that your employer cannot choose to ignore a summons of continuing garnishment. If your employer does not honor the summons, your employer will become responsible for payment of the entire debt.

As you might imagine, human resource and payroll coordinators for most employers find wage garnishments troublesome for a number of reasons. Firstly, your employer must expend time and effort to complete the paperwork associated with calculating and processing garnishment orders. Secondly, until the garnishment is paid in full or otherwise released, your employer has potential financial liability if there are errors with the paperwork. Finally, your credibility may be called into question as a defendant found liable for a judgment in a lawsuit. It would not be an understatement to conclude that your job might be at risk if you involve your employer in your personal business and wage garnishment.

Law Office of Malik Ahmad is experienced in these matters and can stop any pending garnishment no matter where you fall in the process. If you contact us before the pending lawsuit against you goes into default, we may be able to avoid a judgment from issuing. If a judgment has been issued, the judgment creditor’s right to seize your wages terminates the instant we file your bankruptcy case. Sometimes, money that has been seized can be returned to you or it can be used to pay non-dischargeable debt like taxes.

Summary Judgments and wage garnishments function as powerful tools used by creditors to seize your money. When we file your bankruptcy case, your creditors are powerless to take any action and they lose their right to seize your wages. You can file a bankruptcy at any point in the pre-judgment or judgment process to put an end to creditor action. Don’t wait until your wages are at risk – call the Law Office of Malik Ahmad at (702) 270-9100 as soon as you suspect any risk of wage garnishment.

Can you save your home via bankruptcy?

In Uncategorized on 04/23/2011 at 5:18 pm

Home Foreclosure and BankruptcyI have dealt with this topic many times here, one more time I like to dwell this very important topic in somewhat greater details.
When You Are Facing Imminent Foreclosure?
A bankruptcy may stop imminent foreclosure regardless of the time if you file it before the fall of hammer, even if it is done few minutes and is intimated to the auctioneer. I have filed bankruptcy many times and then rushed to the auction place and stopped the foreclosure by showing the bankruptcy papers to the auctioneer. It is only done in emergency when the homeowner is either very lazy or hesitant to do any action or does not know his choices and the lender backed out from a loan modification promise at the 11th hour. It does not make difference if you had merely filed a skeletal i.e emergency bankruptcy regardless of the chapter you had chosen. Of course these measures are temporary. As you should know, the filing of bankruptcy petition an automatic stay is issued which is inherent in the petition of bankruptcy. In Chapter 7, you can prolong the stay if a mortgage negotiation is conducted during the mandatory period and before the creditor requests a motion to lift stay from your petition. However, when the discharge is granted, it is likely, that your creditor/lender would start the foreclosure proceedings again and try to evict you. It is different in case of Chapter 13 where debtor/homeowner might be able to cure the defaults on the mortgage under the plan and keep up ongoing payments. If so, the Chapter 13 debtor may be able to save the home from foreclosure.
One should understand that the bankruptcy can stop only the foreclosure for a short term. You need to handle the basic cause and cure the deficiency or negotiate the loan modification. If someone tells you that filing a bankruptcy is a permanent cure, then he/she is lying to you big time. Bankruptcy can buy some essential time for negotiation and cure of the loan. Again, the loan can be transferred from the underwriting department to the bankruptcy department of the bank and they now permission from your bankruptcy attorney to talk to you or some of your representative and that may be time consuming.

Reaffirmation of Mortgage
If you are willing to continue making the required monthly payments, you could still lose your home if you file for bankruptcy under Chapter 7.
In other words, in Chapter 7 filing, if you have no equity in your home and you have not made your payments, the creditor can foreclose on your home during or after bankruptcy (after the motion to lift stay is taken away, or within 30 days, or when your bankruptcy is discharged.

Would Trustee Take Your Home?It depends on two basic factors. (1) How much equity you have? (2) how much of the home value is sheltered under the exemptions?

Please remember under Nevada laws, the exemptions of homestead is $550,000.

What is Homestead Exemption?The homestead exemption is the amount of your home’s value that the law puts out of the reach of your unsecured creditors. Mostly, in Nevada, Trustees are shying away from doing this extreme action because basically very few home owners have value which is non exempted and has otherwise equitable interests in their properties in this struggling economy.

Finally, Nevada Sued Bank of America

In Loan Modification on 04/09/2011 at 5:48 pm

We all know that Bank of America is the slowest, laziest bank when it comes to loan modification. There customer service is horrible, and when it comes to simple straight forward loan modification, they keep on dragging their feet, and find some excuse to delay the loan modification. Tired of this fiasco, the attorney generals of both Nevada and Arizona mustered courage and sued the BOA. Let us hope that bring some quick good result for the homeowners in Nevada.

http://www.nytimes.com/2010/12/18/business/18mortgage.html?ref=foreclosures&pagewanted=print

Military Families Targeted in Foreclosure Crisis

In Loan Modification on 04/09/2011 at 5:42 pm

New York Times has recently reported in a detailed article that even military families are not spared in this ongoing foreclosure mess and targeted by lenders, foreclosure scam agencies and others. How shameful it is that these families suffer from the hands of these predators. Here is the full article.

http://www.nytimes.com/2011/03/12/business/12military.html?_r=1&ref=foreclosures#

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