talked to attorney who said I did not need to file 7

[svoboda70]

I visited with an attorney for half an hour and she told me I have a no asset case and that I should just not pay my cc's, change my phone number and stop worrying about the cards. I am 74 yrs of age, have COPD, live on SS and my husband passed away in September leaving me with only my SS income to live on. My mobile home is paid for, my car is paid for and I will probably never need to use credit again so she told me not to worry about it. The only problem I have is the phone calls constantly. Otherwise, I am fine about not paying. I intended to pay and want to pay, but I don't have enough money. What do you all think?

[blessed]

As far as I know they can't garnish your SS income. Some else confirm, is this true?

Maybe you should get a second or third opinion. Best of luck though!

[HHM]

Don't discount the value of peace of mind. Go into your twilight years without debt and the comfort of not having to worry about something happening.

Also, you have some assets that are paid for; even if exempt, that doesn't prevent them from placing a lien and possible seizure of the assets. The burden is on you to claim the exemption (exemptions don't operate automatically).

Yes, SSI cannot be garnished, but that doesn't mean they cannot garnish your bank account, and again, put the burden on you to demonstrate the money in the account is exempt (but in the mean time, the bank freezes the account).

[MSbklawyer]

I visited with an attorney for half an hour and she told me I have a no asset case and that I should just not pay my cc's, change my phone number and stop worrying about the cards. I am 74 yrs of age, have COPD, live on SS and my husband passed away in September leaving me with only my SS income to live on. My mobile home is paid for, my car is paid for and I will probably never need to use credit again so she told me not to worry about it. The only problem I have is the phone calls constantly. Otherwise, I am fine about not paying. I intended to pay and want to pay, but I don't have enough money. What do you all think?

I advised a similarly situated client the same way only yesterday. Change your number and the calls will stop. But there's a lot to be said for HHM's points below.

Another caveat is that if you have anything of value when you die, your paid-for mobile home for instance, your creditors will be able to satisfy their claims out of your estate. Exemptions don't apply after you're gone. It may be worth your while to get some estate planning done so that your creditors don't get in line ahead of your heirs for whatever you leave behind of value.

[sawdust14]

There was an older couple at our 341 meetimg. They just got set down and were sworn in and asked the standard several questions about the truth of their filing. The trustee then asked if Social Security was their only income. They answered yes and he said "that's all I need, good luck". It took them longer to get to their chairs than the 341 lasted. LOL

[BKDefender]

svoboda70:
When a client in the same situation comes to me, I tell them the same thing. I've had numerous potential clients who are retired and their only income is social security, private or public pension, and sometimes draws from their 401(k) or IRA, and my answer is usually the same. "If you do not intend to buy anything on credit in the future, just change your phone number, don't give it out to anyone you don't want to call you, and don't bother with bankruptcy."
The only time I have advised to file BK at that stage was if they wanted their home/car/401(k)/IRA to go to their children or grandchildren when they pass away.

--William

[HHM]

But at the same time, there is NO downside to the person filing bankruptcy.

Not to get into an argument about this; a possible approach (I won't say better ) is to present the alternatives and allow the person to choose. After all, unless you explore what is actually important to the person, I don't think recommendation either way is viable. Present the two options and allow the client to choose.

[backtoschool]

I agree with HHM. I would be concerned about not filing, because you have assets that a creditor could put a lien on once they get a judgment against you. Also, just because the income in your bank account is exempt, that does not mean that a creditor with a default judgment won't put a levy on your bank account and make your life miserable until you prove that the money in the account is all exempt.

Why put yourself through that hassle? I would file bk.

[coco1]

This is the question I have been asking also. Any feedback would be so appreciated!! I haven't paid on my cc's since Dec 09. I have 12,000 in cc debt and my only income is disability pension and social security disability. I rent and have been paying on a car for 12 months of a 60 month loan. I just can't pay my bills at the end of each month. I don't know if I should file or not. Most of the money due on my cc's are from prescriptions and paying medical bills. Anyone?? thanks

[music12]

i would think you should make sure that your home and car are exempt from any judgments or liens.

[msm859]

well the creditors cannot lien anything unless they first file a lawsuit and obtain a judgment. so maybe you can get away with not filing until someone actually sues you.

[BnkrptcyLwyr]

I will also throw my hat in the ring with what HHM says. While it may be true that they cannot garnish Social Security, they can garnish a bank account that the funds are deposited into if there are other funds that are comingled with it. Furthermore, if there are other assets that can be attached, that can be a problem. As HHM notes, liens may be attached, interest keeps piling up, etc. These debts may be a problem later for those that are left behind. It's not just as easy as saying "don't worry about it."

On the other hand, with all the assets apparently being owned free and clear, it is unlikely that you will be able to exempt it all ... and that would be a problem. But that could be just as a much of a problem if you don't file either.

Hard to say without knowing the entire situation.

[svoboda70]

Thank you all so much for your responses. I have placed my mobile home in both mine and my son's names, and my car is in our joint names.
Any problem with that? Does it look like there's some protection for me and mine?

[HHM]

If you just did that, that is actually NOT a good move.

Fraudulent Transfer.

[backtoschool]

Thank you all so much for your responses. I have placed my mobile home in both mine and my son's names, and my car is in our joint names.
Any problem with that? Does it look like there's some protection for me and mine?

Half of your mobile home and half of your car will be assets that can be attached if your creditors get a default judgment. Your banking account can also be levied until you prove that all the money in there is exempt.