QUESTION

Should I file bankruptcy if I am being taken to small claims court for medical bills that doesn’t seem right to me?

Asked on Dec 06th, 2016 on Bankruptcy - Nevada
More details to this question:
I also state taxes, back child support and credit cards. I am on disability.
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2 ANSWERS

Bankruptcy is certainly one option you could reasonably consider. At the same time, you might be 'judgment-proof.' That means that you may not have any assets which your creditors could take from you if they won a judgment. Each state has a list of 'exempt property,' that is, property which your unsecured creditors may not take from you. You'll need to consult a local lawyer to find out if you are judgment proof. Of course, even if you are, you may be the kind of person who is stressed out by collectors' phone calls and letters. And in that case a bankruptcy is an effective tool to shut off that kind of bother. Finding a skilled bankruptcy lawyer is almost always a good idea.
Answered on Jan 29th, 2017 at 1:03 AM

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Disability is an exempt asset, which means that if managed properly, ordinary creditors cannot take it away from you. Unfortunately, neither state taxes nor child support are ordinary creditors. You would not be able to eliminate either state taxes nor child support through bankruptcy, so I do not see any benefit to going into bankruptcy court to solve this problem.
Answered on Jan 26th, 2017 at 7:28 PM

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