Wage Garnishment, Chapter 13, & FHA

Hi Paul, in short we had 3 deaths in the family and had to get money to help family with burial exspenses. Paid payments for a year or so and finaly got behind and could not satisfy creditor. Fianally they obtained a judgement for wage garnishment due to commence on my next payday.

Could you tell me if Chapter 13 would look better on credit report or wage garnishment. And how long do they stay on credit report, and how long if you keep up everything would it take to qualify to buy a home after something like that.

Also even if I filed chapter 13 to stop wage garnishment would the judgement still show on my report even though thy only garnished once or twice before the bankruptcy was filed.

I really appreciate your help I can’t seem to get any answers.

Cliff 

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Hello Cliff,

There are some issues that should take priority over how the credit report will appear.  To answer your question, the wage garnishment itself will not appear on your credit report.  The judgment will most likely appear on the credit report regardless of the path you choose.  Again, though, there are bigger issues than the credit-reporting ramifications and what immediately comes to mind is the financial well being of you and your family.

My advice would be to talk to a bankruptcy attorney about your options for dealing with the garnishment.  It is possible to obtain an FHA loan one year after filing a Chapter 13.

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.