What to do if I’m being sued by a creditor after filing Chapter 7 bankruptcy?

UPDATED: Dec 16, 2011

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What to do if I’m being sued by a creditor after filing Chapter 7 bankruptcy?

I am being sued byan electronics store. I owe $7,000. I got my other debt discharged under chapter 7. My home was foreclosed, so I rent. I receive $2,000 per month off social security disability. This was my only debt not discharged. I signed a reaffirmation agreement, but misunderstood the monthly payment amount, thinking it was lower. When they take me to court, can they garnish my disability, and what can I do? I can’t afford the reaffirmed amount.

Asked on December 16, 2011 under Bankruptcy Law, Nebraska


Michael D. Siegel / Siegel & Siegel, P.C.

Answered 11 years ago | Contributor

Well, you really messed this one up.  This is the reason why an attorney is so important.  First, you never should have reaffirmed.  You bought into the scare tactic that you were going to lose your stuff if you did not sign.  Never happens.  Now, you are going to be sued for a debt you never had to pay, which was the whole point of the bankruptcy.  You are going to lose.  Lack of understanding will never fly if you thought that was a defense.  Disability cannot be garnished, but you will have a judgment post bankruptcy, which really makes the whole bankruptcy not worth it.

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