Legal Question in Bankruptcy in Mississippi

Bankruptcy

Recently I had my car reposessed by the bank. they sold the car and now I owe a total of $15,000. The bank had emailed me with an agreement that I could pay half of the loan and be clear of all other debt. (loan with an ex) I want to email them with and agreement that I can pay $3500 in cash, and the rest in a loan over the next year. Which they said could be worked out. Can they at any time come and garnish my wages after this agreement.

Asked on 3/04/08, 10:33 am

1 Answer from Attorneys

Dennis Felix Felix Law Office, P. A.
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Re: Bankruptcy

Please be aware that what you are doing represents the "forgiveness of debt". Since there is no dispute over the amount due, you will likely get a 1099 from the bank for the amount that they wrote off which will be ordinary income to you on your income tax returns. If they are willing to agree that the balance is disputed in writing and that the sum paid is a compromise of the dispute then you may not have forgiveness and therefore, no income but it must be in writing by both that the amount due is in dispute. By the way, if they agree that the loan balance is disputed then a compromise should relieve you of any further liability. Dennis

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3/04/08, 4:03 pm

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