Bankrupcy

[B. Hardison]

What is the name of your state? KY
My husband & I are on fixed incomes. VA disability & SS Disability. We have always paid our bills on time and our credit cards usually a little above the min. payment due. With the high cost of heating and etc. and with the credit card min. payments increasing, we know we will no longer be able to do so. We have worked hard in the past to have a home and etc and do not want to lose them. Can bankrupcy be filed on credit card debt alone? If not, can a person go to jail if they just stop paying them? Thanks.

 

[bigun]

You must list ALL creditors. Under bk reform, if you wish to keep secured debt like a mortgage, you will have to sign a reaffirmation agreement.
How much equity in your home and car?
No, you don't go to jail for not paying cc debt. If the disability income is the extend of your earnings, they are exempt from creditor seizure or garnishment.
How much cc debt and medical debt etc. do you have?

 

[B. Hardison]

bankrupcy

Thank you so much for answering. We have no equity in our home, it was refinanced approx. 5 yrs. ago when my husband was out of work. Also, our vehicles, we owe more on them than the current value. I also receive a retirement check (can that be garnished?). We owe approx. 85,000 in unsecured debt. This has happened over a period of many years, not just overnight. But we have always paid our bills until now. A organization called SDS West from Orange Co. California contacted us and advised that we stop paying on our cards and put it in a Bank of America Trust. They would then negotiate with our creditors for settlements. They said we could be out of debt in approx. 30 months. without filing bankrupcy. This is all unsetteling and frankly, we don't know who we can trust. Again, thank you

 

[bigun]

ERISA qualified retirement accounts can't be garnished.
I'd be leary of debt settlements. From what I can tell, they basically get you sued.
Most bk lawyers give a free initial consultation. Make a few appointments and get your options explained.

 

[B. Hardison]

bankrupcy

Thank you very much. You have been a great help.

 

[B. Hardison]

bankrupcy

SDS has just called again wanting us to sign with them. We are going to contact a local lawyer. But I need to ask another question. When figuring the states medien income level, is that all of our income including VA Disability, SS Disability and retirement. Or are any of these exempt?

 

[rosier2000]

is that all of our income including VA Disability, SS Disability and retirement. Or are any of these exempt? The disability is exempt. The retirement may be, stand by for others.

As bigun already explained, stay clear of the debt settlement companies. With the kind of debt load you have. I'd lean toward bankruptcy.

 

[Leinalani]

Here are some websites that might help you understand BK a little better:

http://www.bankruptcyinformation.com/
http://www.bankruptcyaction.com/
http://www.creditinfocenter.com/bankruptcy/

Hope these help.

 

[AttorneyOney]

When figuring the states medien income level, is that all of our income including VA Disability, SS Disability and retirement.

There is a form (B22A or B22C) that is used to perform the means test. Your attorney will ask you to provide income figures in a variety of categories for the past six calendar months and will use them to fill in the form. Generally speaking, income you receive under the Social Security Act is not included in current monthly income, but nearly everything else is.

The median income for a two-person family in KY is $37,932, which works out to $3,161 per month. See <http://www.usdoj.gov/ust/eo/bapcpa/bci_data/median_income_table.htm>

 

[B. Hardison]

bankrupcy

Our 19 year old daughter lives with us and is a full time nursing student. She has purchased items (that she paid for) that is in our home. She also has a car that is in our name, but she paid for it also. Do we have to list the items that belong to her as assets? She shouldn't be held responsible for our debt. We are seeing a lawyer 1/30/2006, but I would like to armed with as much information as I can get. And I want to thank everyone again for your help.

 

[bigun]

Her property should not be listed.
Assets like a car in your name that she uses will have to be disclosed.

 

[B. Hardison]

bankrupcy

Would it be wrong to sign it over to her before we decide if we are going to file? Also, I have read on these posts about the Trustees. Can you tell me who they are and what they do? Thanks

 

[bigun]

Make no property transfers prior to filing. That's called fraudulent conveyance and the bk trustee can sue your daughter for the return of the car and may dismiss your bk.
The trustee will represent the interest of your creditors. He/she will handle the case from beginning to end and be certain the filing and procedings conform to the federal code and the state code that specifies the property that is exempt from creditor seizure.

 

[B. Hardison]

bankrupcy

The lawyer sent forms for us to fill out. We are to list all our assets. For example bedroom suite #1 and so on. Are we to list every piece of furniture no matter how old? Our bedroom suit is 24 years old. Also, I have a 20 year old organ and a 15 year old piano my mother bought for my two daughters. They are still here until they have a place to put them, do I include those.? Also, is there any way I can protect my daughters car? She is a nursing student and drives to school 4 days a week plus her job. I don't want to do anything wrong, but it breaks my heart to think she may suffer through all of this through no fault of her own. Are the trustees local people and do they really try to work with people?

 

[bigun]

Follow your lawyers instructions and list all of your furniture. Tell him about the pianos and that they are gifts.
As to the car, is she making the payments? Does it have any equity?
The trustees will be local lawyers but remember, they are not your friend. They represent the creditors.