QUESTION
Can I declare bankruptcy if my income it's only $600 a month and I only live on social security?
Asked on Jul 18th, 2014 on Bankruptcy - Illinois
More details to this question:
I owe my mother fifteen thousand dollars and I can pay them into credit cards.
7 ANSWERS
William M Stoddard
You should not do so. SSA benefits cannot be garnished except by the IRS. Any judgment taken against you is worthless to the creditor. Try not to get into any more debt.
Answered on Jul 28th, 2014 at 3:24 AM
You can file a bankruptcy. However, before you file you should speak with a bankruptcy specialist about non-bankruptcy options that may work better for you. You should stop all use of credit and credit cards.
Answered on Jul 23rd, 2014 at 3:00 PM
You meet one of the preliminary requirements for eligibility to file bankruptcy, but if you borrowed $15,000 from your mother to pay credit cards, that was a poor decision. Filing bankruptcy is not a decision that is made based on one or two simple factors, which is why the "free consultation" was invented.
Answered on Jul 22nd, 2014 at 1:08 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You can certainly declare bankruptcy with an income that low. If you pay your mother then declare bankruptcy within 4 years, the trustee will take the payments back from your mother and spread the money out over your other creditors.
Answered on Jul 22nd, 2014 at 1:07 PM
Do not pay your mother in any way before you file bankruptcy. That is considered a preferential transfer and the Chapter 7 trustee will sue to recover whatever you paid her. Aside from that, you can certainly declare bankruptcy when your only source of income is social security, although you would be considered "judgment-proof" for most creditors unless they are one of the few types of creditors allowed to garnish your social security.
Answered on Jul 22nd, 2014 at 12:59 PM
Probate Attorney serving Friendswood, TX
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Law Office of Melissa A. Botting
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There is not a minimum income limit on bankruptcy.
Answered on Jul 22nd, 2014 at 12:58 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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Yes you can file bankruptcy. It also sounds like you have a lot of credit card debt as well. But, you need to know how the process works and what the consequences will be. Call an experienced lawyer now.
Answered on Jul 22nd, 2014 at 9:35 AM