All of my income is exempt, should I file?

[chad2020]

All of my income is exempt from what I understand. Social security and veterans benefits. If my income can not be touched in court or garnished, should I even consider filing bankruptcy? I inquired and he said that my social security was not calculated but my veterns benefits were and I would have too much disposable income after the plan so I did not qualify for chapter 7 and had to do chapter 13 and pay approx. $1200 per month. I am lost. I was told that why even file if all of your income is exempt , they can not touch it anyway. Please advise

[keepmine]

Do you have any assets like, equity in a home or, investment accounts that are not ERISA qualified?

[chad2020]

no I don't. I was planning on letting the home go back. The attorney said I needed to keep the expensive vehicle to bring down my disposable income. That would be included in the $1200 per month. I get 2400 SS and $3100 veterans benefits. I just never recovered from the debt from medical, etc... before I got my veteran benefits. They don't go back and pay before my application date for the benefits. If all of my income is exempt and I don't file bankruptcy and I don't have any property, and the house goes into foreclosure and there is a deficeit what will happen when they try to sue me for it if my income is not attachable? Then why file bankruptcy and pay $3500 for a chapter 13 to a lawyer then pay $1200 per month to pay back creditors over 3 years. After I paid the retainer, should he do what is in my best interest and say, you don't need to file because they can't take it anyway (my income).
Signed,
JUST CONFUSED

[keepmine]

If you have no assets, there is no need to file.
No need to pay any retainer if you're not going to go through with the bk. If you get sued, show up in court with proof that your income is exempt.
Don't comingle any funds that are not exempt. They can sue all they like but, you're execution proof.

[woeisme]

As keepmine said, you are not judgement proof, but you are collection proof it sounds like. Anyone can get a judgment against someone who owes them $, the battle is getting the $ once the judgement is granted. You will have nothing that the creditor can take, thus collection proof. I would say a CH 13 BK is an awful expensive way to go for someone in your case, I personally wouldn't do it. Now if you want a great credit score in the future (and way in the future since a BK will also trash your credit score the way non-payment does) then you can pay all this money to get the debt erased, but is it really worth the $46,800 you'd spend in 3 years? Your attorney really should have told you this, that with no assets and your income exempt, filing was not in your best interest.