QUESTION
Should I declare bankruptcy right now if I'm just starting to receive letters from collections agencies for a recent hospital stay?
Asked on Jan 19th, 2017 on Bankruptcy - California
More details to this question:
I also owe $15,000 in credit card debt which I do pay responsibly every month. I don't have a job and haven't earned more than a few hundred dollars a month (off the books) for many years. My main concern is that I have $14,000 in the bank to live off of for now and I'm worried the agencies may get a judgment against me and levy the account. Should I declare bankruptcy now? Will I lose that $14,000 if I do? I also have agoraphobia and can't make it to see a lawyer. Are there any who make house calls?
5 ANSWERS
1 Award
Yes, you should definitely file immediately. There is no benefit to waiting but there is a large risk if someone garnishes you. Also, most attorneys can work with you through the mail and email, but you MUST attend one hearing to complete the case.
Answered on Mar 20th, 2017 at 5:52 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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No, you should not declare bankruptcy. The trustee will force you to turn over the $14,000. You should probably consider filing for disability.
Answered on Mar 20th, 2017 at 8:28 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Some lawyers will make house calls in extraordinary situations, and your agoraphobia might be one such situation. You might want to consider moving your $14,000 to a place where creditors cannot reach it. If you file a BR in a state which permits use of the federal exemptions, and if you do not own real estate, you could very likely exempt all or nearly all of the money. Do consult a lawyer. It's almost always worth the investment.
Answered on Mar 20th, 2017 at 8:27 AM
Unless that $14,000 is eligible for an exemption available to you, should you file bankruptcy, you would lose that money, and it would be eaten up by trustee commissions and payments on debt. Unless and until you have a court judgment against you, or owe the government or government linked debts, the money should be safe in a bank account. However, I would not keep all the eggs in one basket and have your savings in several accounts with small, rather than national institutions. You may want to meet with a bankruptcy attorney to discuss exemption planning or asset protection. Unfortunately, asset protection attorneys are woefully ignorant of the strategies to use when someone plans a bankruptcy in the future, so I would stay away from them.
Answered on Mar 19th, 2017 at 10:19 AM
You can get rid of the debt and keep your cash. A case may be done using just phone and internet but you must show up for a brief hearing.
Answered on Mar 18th, 2017 at 11:02 AM