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#1
02-09-2009, 12:25 PM
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 BankrupcyMA I am considering applying for bankrupcy...I have 2 credit cards that I am unable to make the minimun payment on. If I should do this, would my car and my Social Security be safe? I live strictly on my SS check... I do not have any assets other then the car loan from a credit union...They have the title.... Also, what would hahppen if I just stopped paying on the credit cards altogether? Thanks, Nancy |
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#2
02-09-2009, 02:26 PM
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| If you stop paying, they send you to collections and you run the possibility of getting sued. But, SS income is exempt from garnishment. What sort of balance on the cards? How much euity in the car? Looks like you can use federal exemptions in Ma. and they're pretty generous if you don't own much. [url=http://www.bankruptcyaction.com/maexemptions.htm]Massachusetts Bankruptcy Exemptions - MA Bankruptcy Exemptions[/url] |
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#3
02-10-2009, 11:13 AM
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BankrupcyThanks for getting back to me.. My credit card balance for AAA Visa is close to $5,000 and about the same amount on the DCU Visa card.... My car balance is $16,000 but I want ot keep that out of the bankrupcy if possible... I will check with the MA Bankrupcy exemtions and see what my options are. Thanks, Nancy |
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#4
02-10-2009, 03:49 PM
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| I'd not file bk over $10K. You have nothing creditors can take. Your income is exempt from garnishment. If you get sued, just show up in court with proof that the money in your account is from SS. |
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#5
02-11-2009, 11:30 AM
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credit card paymentThanks for the info... If I pay just part of the monthly minimun payment on my credit card, what will the Visa do, besides charge me more interest and penilties? Another question...If I should get sued by Visa for non payment, can they attatch my car? I have a loan with the credit union for $16,000 still on it. I am current with my auto payments.... Thanks Nancy  |
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#6
02-11-2009, 12:33 PM
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| Is the auto loan with the same institution that you have a cc from? Do you have bank accounts with either of the credit card lenders? |
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#7
02-11-2009, 04:17 PM
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| Another question you need to answer (or consider) is how much *equity* is in the car. That is, how much it is worth over what you owe on it. You owe $16,000, so if it's only worth $16,000 you have no equity. If it's worth $18,000 you have $2,000 in equity. There's only so much vehicle equity you can shield from your creditors in bankruptcy. So if it's worth a lot more than you owe on it, you might have to give it up and get a cheap used car. |
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#8
02-12-2009, 12:46 PM
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bankrupcy?I do have one credit card with the same credit union as my car loan.. I do not think I want to file bankrupcy so I will look for other solutions... What will BOA Visa do if I can only pay part of my monthly minimun payment? I know they will sock it to me with interest and penilties, but can they sue me if I continue to pay something on the card each month? Thanks, Nancy  |
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#9
02-12-2009, 01:12 PM
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#10
02-12-2009, 03:46 PM
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| I'd agree with Homeguru for a lot off reasons. If you file bk, you'd be forced by the CU to reaffirm that credit card or, they'd refuse to allow you to reaffirm the car. Plus, you can only play the bk card every 8 years. What if you get ill and you can't pay whatever medicare or any private insurance doesn't cover? Also, your income can't be garnished in the event of a lawsuit. As to the question of if BOA will sue-who knows. Some people go months and years and never get sued. Here's what I'd suggest. Call both card issuers and ask if they have some sort of hardship program. They may lower your monthly payments and interest rate for awhile. Never hurts to ask. Of course, you need to stop using the cards. Another suggestion would be-get a pt job and dedicate the earnings to getting the cc debt under control. Doesn't have to be forever but 6 months of 20 hours or so a week will help a lot. Do you have family that can help you out? I'm no fan of credit counseling but, since bk won't be in your best interest at this time, CCCS may be a solution if you get with a nonprofit. Here's a link to a site that may be worth exploring. [url=http://www.nfcc.org/]Welcome to NFCC![/url] Good luck! |
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