Debt Relief Law Offices of Tampa Bay

Tampa Bankruptcy Attorney 727-849-3328

Mortgage and Credit Card Garnishing

Posted on May 28, 2014

Host: Well, well, well, well, well young lady. Okay, just stand by we’re going to do that right now. Welcome to the program. It’s a debt relief program. With me of course is, Ziona Kopalivich. Who’s had a busy weekend young lady. What is the thing? You’re just out riding a bike, or going to Sarasota, you’re going hanging down in Venice.

Ziona: Well that’s why we just had three days to rump around Florida and get acquainted. Obviously we wanted to pay our respects to the fallen.

Host: Absolutely.

Ziona: And we’ve done that.

Host: Yes, ma’am.

Ziona: And then you know, we had three days away from work.

Host: Which was nice

Ziona: Which is what Americans do.

Host: We, we, we do. We do enjoy our time off. And you know what’s funny though? And this is really nothing to do with debt relief, but I think they, the Europeans, really have just got it down. And when pretty much like Britain shuts down in August.

Ziona: And yeah and they go to southern France.

Host: Yeah, they go to southern France, they go to Spain, they go to Orlando.

Ziona: Right, right, right. Take a month and rump around. Well we took three days to rump around.

Host: Well there was some rumping done.

Ziona: Lovely, I mean West. The West Coast of Florida is so beautiful.

Host: It is indeed.

Ziona: And see that when it’s touristy it’s not as bad as the Miami side.

Host: Amen. That is the truth.

Ziona: You can just see the gorgeous sights. Wonderful restaurants. And wonderful tourists. We had a great time but the bicycling was so much fun.

Host: Good for you. Yeah the Pinellas parks, have a lot of start and stops. And when your bike guy and you just like to get your head down and just go. There’s a lot of starting and stopping on the Pinellas trails. That’ll drive you crazy, but every week Ziona comes in.

Well every other week I should say when we talk about debt relief and with something that you do. Do on a regular basis is help people when it comes to their debt and whether or not they should consider bankruptcy and such.

What’s really been eye-opening to me since you’ve allowed me to come in to sit in here with you and do this show is that I am much more cognizant now. In just with the education that I received from listening to you is, when you see things. When you see, for lack of better terms, they get off just as an example car deals, leases, pay-as-you-go, 90 days the same as cash. You start to realize these are all traps.


Ziona: These are traps that have to be very savvy and very careful before you get into a transaction. Because you can be trapped in one of those. Because feel you have no choice and that the best deal you can get. And on one hand and the other hand. People get into contracts and they don’t really know the value don’t know the value of the contract. What they’re getting and there typically overpaying. People think in terms of monthly payments. I can afford this monthly payment not ever realizing that these monthly payments, go forever.

Host. That they do.

Ziona: They don’t stop. Life changes. Jobs finish. Health goes downs. We have ups or down in other areas of our lives but then those traps are constant, consistent. Every month we have to pay those bills. Sometimes, unfortunately we get to the point that we cannot uphold the responsibility, or it is just the deal is not that good and it is time to get out of it.

Host: And there are times I think we get into, a we’re really it’s almost a desperation situation. Where, if someone says “look we’re looking to alleviate this problem and just sign here.” And then you realize, you know you’re rolling over your debt into another credit card. You know that they love to do that to you.

Ziona: Right, or you roll your credit card debt onto your home, or you roll your old jalopy debt on to your new car.

Host. Yes, right.

Ziona: Right? Sounds familiar to you.

Host: Oh yeah. Don’t ever buy a 2001 Corvette when you just feeling like you know your jonesing it do it because you then he realized it hurts my back to drive this thing. And you give it back to the dealership and you’re paying for the next four years.

Ziona. For the next four years and for your next car.

Host: Oh, yep.

Ziona: Yep. So you know we’re here to help people to get them out of some bad luck, or bad decisions.

Host: Well, I actually wanted to just make it clear that if anyone has any questions. Anything regarding their debt situation. The number’s the same. 796-7272,or if you happen to be outside 352 it’s 888-613-2050. But it’s not always a question of fault. A lot of times, especially since 2007 I would imagine. It’s circumstance.

Ziona: Circumstances, right. The economy obviously the public at large didn’t create the economy. How it all sunk into ’07 – ‘08 and the housing bubble. Even those of us who did not buy into those huge mortgages the whole mark market you know, went south. As a result a lot of people lost their home and it’s sad.

Host: And then there’s the recovery part of it has been slow. And in talking to just a mortgage banker, he said “look, it’s not going to reach the level it was at or at least, seriously you are from 10 to 15 years from now.”

Ziona: Well to be honest with you. We do not want to go back to where it was because it was super inflates. And that inflation just mushroomed over a few years. Because I remember buying my house. I think I told you that earlier I bought my house, I paid $103,000.00 for three bedrooms at 2,000 ft.² It was nice, and within a few years. Maybe five years later the same house all of a sudden soared to $350,000. And it was like, “what?” Why I could never afford to buy that house now five years down the road.

Host: No.

Ziona: Obviously, you know the market went back to just about where it used to be. And those individual’s were like, “Oh!” Well not everybody, and almost everybody but some people were saying “II feel I lost so much money,” I feel that I have not lost any money. Because it wasn’t really money. It was just the inflation of the market.

Host: It was phantom. It was completely phantom. The one, one of the things.

Ziona. The problem is that people bought houses when the crisis was so inflated. You know, and now that the market beginning to stabilize you’re not gonna make that difference.

Host: You’re not.

Ziona: You know if you’re not gonna sit on the house for 15 years then look at it as renting a house 15 years. Because you’re not gonna making heavy equity in the house beforehand. It’s just as simple as that.

Host: The, in focusing specifically on people did that are trying to recover from, or getting to recover from the relief of the debt and such. I never really took into consideration just how much emotion plays into this. Because, there’s first of all what everyone understands that feeling of failure. It’s like, “Oh my gosh. I failed. Oh my gosh everything was going so well it all fell apart. And in it’s my fault. It’s my fault. It’s my fault.” That’s almost a natural reaction, but here’s something that was pointed out to me that I found very interesting. Is that people get an emotional attachment to their debt. Because they’re attached to their credit card.

Ziona: Right, right. What will they think about me? What will they think if I’m late? And the fear of getting a phone call from a creditor asking for the money. Especially if you don’t have the money. It is a scary phone call. And it’s humiliating to get that phone call. I was talking to a couple yesterday. You know, good people. Nice people. $82,000 in credit cards. $82,000. And even though the combined income of the couple is not bad income. Very good income. But with two children and how do you show for what you have purchased for $82,000? Which a lot of it went into upkeep of the household. Just stuff, you know? And they have nothing to show for it. But they have the debt. And there’s still hesitation of what if? What if I can’t file for bankruptcy? But the point is that there is already one judgment against them.

Host: Ooh.

Ziona: And there is one working its way through the courts now. In fact there’s a garnishment on the first one. On the first one is already a garnishment, and then the second one is coming you know? Progressing through the courts.

Host: Oh, man.

Ziona: You know, you can’t afford to wait that long. Because once you get to a judgment in a garnishment now it’s money right out of your paycheck. So you, it makes it harder to save money to pay an attorney to take care of the problem. That you should’ve found that six months earlier and you would have been okay. You would’ve been okay. Now it makes it the little more difficult. Now and that getting ready to get the second judgment and there is going to be another, you know. Uh one thing that was interesting is that you know if you’re the head of the family. You’re responsible for support of the dependent for over 50% of the expenses of the dependent. Your wages cannot be garnished. Unless you have agreed in writing to allow the creditor to garnish your wages. So, some banks do that. And when you apply for credit card.

Host: Really?

Ziona: When you sign on the bottom line.

Host: Right?

Ziona: You really read those credit card applications. Apparently these people have agreed for the credit card to garnish the wages. They have given up a very important protection that the Florida legislature gave them.

Host: And who looks for that? Nobody would look for that.

Ziona: Nobody would look for that, but it takes talking to someone to make it happen.

Host: Hey now you think that maybe someone with experience or perhaps finding someone who well, deals with this a regular basis from an attorney level. Would probably help somebody in that situation.

Ziona: Before you apply. Make sure you don’t give anyone the right to go after your wages. Before your even charged chewing gum.

Host: Wow, nobody does that. You know nobody does that.

Ziona: Well nobody knows; nobody reads it’s all small print.

Host: Yeah, yeah there it is all there whatever yeah I will pay it back. Whatever blah, blah, blah.

Ziona: Because we borrow money with intent to pay back. We don’t borrow money with the intent, I mean very rarely that people borrow money without the intend to pay it back.

Host: I, are we more ignorant than most when it comes to fully understanding these things.

Ziona: No, I think we are all as equally as ignorant. I mean those contracts are written by very sophisticated attorneys in big law firms. And people, who really you know when you sign a contract with credit card company or bank. I mean it really is not that equal battleground. You have no idea what you’re signing. The particular banker does know what you’re signing or what he is making you sign. But somebody who drafted it knows exactly what they drafted.

Host: And you see that’s what they are in business to do. You’re not in business to monitor a credit card. You’re in your business to do, what you do, this is what these people do for living. And they make billions of dollars in profit doing so. Wow, wow, wow, wow.

Ziona: You have to be careful. I mean when you sign those things.

Host: I think that’s a pretty good little understatement. But it makes a lot of sense. It does indeed. I do more questions. I got all sorts of questions. And if anyone else has questions of course us at, 796-7272. Would love to hear your thoughts. Just any questions you might have just make a little bit easier for you and really some of that debt. And isn’t that what you want anyway? The Debt Relief Program. JB Radio. Ziona Kopalovich of course, and they can reach you how?

Ziona: Well it’s really easy to reach us. You know we are very savvy we have telephones; we have a physical address you can actually see us. We’re not located in India or in Oklahoma. We are here, we are local. Okay? You can actually come in and shake our hands.

Host: Wow, what a concept!

Ziona: Yes, and we will take good care of so you can call us. 727-849-3328. And you can call us out of this area from 352-678-2265. So for this area, we have two offices. We have the office in New Port Richey which that 5422 Trouble Creek Rd. And the telephone is again 727-849-3328. And then our office in Springhill. The address in Springhill is 4245 Rachel, Springhill, FL 34607. And the phone number again is 352-678-2265.

Host: That’s how they do it. And of course if you missed that you can give us a call and we’ll give them to you later on. Uh, Chapter 13. We, you know really there are two or three, because I want to say there is 7, 11, and 13.

Ziona: These are the common ones, yes.

Host: And really, 7 and 13 of the most common if I am correct?

Ziona: For, yeah, for the most ordinary folk. Individual creditors usually look at chapter 7, definitely chapter 13. Chapter 11 were talking about bigger debts, bigger incomes, actual organizations at this point and businesses things of this nature.

Host: So the more likely we are the business is filing reorganization that you expect that to be.

Ziona: Yeah Chapter 11. Though some some businesses that are owned by smaller businesses can be organized in a chapter 13. But only gives if the owner files it, not the business. It has tobe like in doing business as.

Host: Or LLC? Would an LLC or what’s the rule with?

Ziona: No, no, no. Only a person, as an individual can file a 13. A business cannot file a 13.

Host: Gothca,

Ziona: But if you own the business as yourself. As the business owner, not as an LLC, or in INC. Then you can organize under a Chapter 13 and often we tell people to do that. Because sometimes into simpler and easier to reorganize under a Chapter 13, rather than a Chapter 11. Which is a much bigger, much more expensive process.

Host: Well when you’re talking about 13’s, and you’re talking about discharges and such. What falls into that category that makes it?

Ziona: Basically the same debt that you discharge in a chapter 7. You will discharge in a Chapter 13 but the treatment of the debt may be a little bit different. It’s a different remedy that’s often offered to the consumer so 7 is a liquidation. So if you really have very little very few assets and very low income, that’s ideal for you. To do a Chapter 7.

Host: Well what, would what income would you consider like low? Like anything under 50? Under 30?

Ziona: Well the individual is around the 40’s. So which I mean sounds like a lot of money. But if you live by yourself it’s a household of one and you have to either rent or pay mortgage. Often you pay as much as two people might pay for the same space. So with the individual, we started the whole thing around the 40s. Every year it changes a little bit varies but around 40. For two people, a household of two or getting to 50 and then 56 and on you know depending on the size of the household.

But seven is generally a liquidation. It’s you know you get in, you get out. It’s almost I want to say like elegant. You get in, you get out and you’re done within 4 to 6 months. You’re done you’re re-organized, re-reconfigured. We set the reset button. You know, and you can go on to the financial world and reestablish credit takes about a year to two years to do that. Hopefully your health is good at that point and hopefully you will soon secure a job to get to get the fresh start. And that is what bankruptcies supposed to do. Give you a fresh start.

Now 13 gives you a few more options and it’s a little bit more complicated. Obviously a little bit more expensive than a 7. It is there to deal with assets that the 7 is incapable of dealing with income that is higher and other problems such as we’ve talked about in the past stripping a second mortgage or catching up on the first mortgage. I always go back to mortgages. If you’re behind on a mortgage you are not too far behind, you may, you cannot renegotiate your first mortgage if you are in that situation. You will not get a re-modification. You want to catch up on the mortgage in a chapter 13 is the right vehicle for you and gives you five years to catch up on those late payments. Five years so it story of your mortgage going up a little bit but it goes up in a way that you can afford to catch up. Rather than having to come up eight months of arrears, plus attorney fees, plus, plus, plus.

Host: Right, right.

Ziona: So a chapter 13 is a good alternative to catch up. Then if you’re in a situation where your upside down on the first mortgage. Okay, so the house is worth less than what you owe on the first mortgage and you still have on top of it a second mortgage. I can get rid of it.

Host: That blows my mind. Yeah, I find that so amazing.

Ziona: If made the mistake of putting all your credit card debt on the house in the form of a HELOC. You know we, actually now you find out actually life is more complicated.

Host: A little bit! Yes, yes.

Ziona: Yes, a little bit more complicated. And now you cannot pay your HELOC. We can get rid of it. If you are upside down on the first mortgage. It’s not too late to get rid of the credit card that you went and put on your home.

Host: Crazy person, silly boy.

Ziona: Silly boy, silly girl.

Host: So you see actually, when you told me that I thought that the was the position we were we were in. So in that we were so in the black on our first mortgage that the we knew there’s no way we could get rid of that HELOC.

Ziona: Now that you, so you can if you’re in the black on the first mortgage and you’re stuck with a HELOC. Right. But if you were ingenious enough to take a third one to put on your credit cards on. Then we can get the third one. Okay? So we have to be we have to be in a position where your upside down on you know to get rid of the next mortgage.

Host: Gothca, gotcha. Okay, gotcha.

Ziona: The catch is that you have to finish the Chapter 13. So you have to keep maintaining the payments to a trustee over the five, the three or the five years that you’re in the bankruptcy. At the end of that time that mortgage goes away.

Host: Wow.

Ziona: Okay, so you don’t pay during five years. You do not pay, but in the end of the five years it is actually that that bankruptcy, Chapter 13, is recorded. The stripping of that mortgage is recorded in the public record. So now that the house is free and clear from the mortgage and life is good.

Host: Ha, okay young lady. We have a minute left let me just remind you once again that if there’s any questions or if you just want to find out it’s a free consultation. It’s an hour of your time time to see if this really is something you need to consider or should you really just sit down and say okay maybe we can make a muddle through it. 727-849-3328 that’s New Port Richey. Uh, then 352-678-2265 that is, uh that is Spring Hill. And again the thing that have to take into consideration, Ziona, is that it’s an hour and it’s free.

Ziona: It’s an hour and it’s free. And to be honest with you yesterday. I, you know, I gave a free consultation it lasted for two hours. It’s okay.

Host: Hey, you know what?

Ziona: It’s what they took. And that’s what was needed.

Host: So they did it.

Ziona: And that’s what they did.

Host: Alright young lady. Thank you so much let’s do this again in a couple of weeks, okay? Have a great day and be careful.

Ziona: Thank you, you too.

Host: Stay cool! Okay?

Ziona: Okie Dokie