QUESTION
Will it be to our advantage to even file for Chapter 7 so your SSDI can't be touched?
Asked on Dec 28th, 2012 on Bankruptcy - Arizona
More details to this question:
My husband is on SSDI and it’s our only income. We have over $34,000 worth of medical bills. We have no assets except a SUV that’s paid off and is 7 years old. Can we be sued or have our money garnished?
12 ANSWERS
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Need more details but it sounds like you are uncollectable.
Answered on Jul 07th, 2013 at 10:10 PM
You can be sued no matter what your source of income is, but the issue is whether or not any creditor that obtains a court judgment as a result of a lawsuit can take any property from you. Although you have said that your only asset is your SUV, I sort of doubt that is true, since everyone has clothing and household items, and these items are considered to be assets. I would suggest looking at a list of property that is exempt under the laws of the state where you live for more information about what is protected. If you chose to meet with an attorney, I would urge you to be completely candid & not minimize your assets, because creditors can find things even if you think they won't.
Answered on Jan 07th, 2013 at 12:49 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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I believe that SSDI can not be garnished or seized by creditors. Wisconsin also has a generous list of property which is exempt from the reach of creditors. If you have only one car between you and its fair market value is less than $8,000, no one can take it. There are plenty of other exemptions. A bankruptcy does not seem urgently necessary. On the other hand, it does succeed in making creditors stop bothering you, and ultimately discharges their claims.
Answered on Jan 07th, 2013 at 12:48 PM
It is true that laws exist to protect your income, but you should be prepared to have to prove that your income is exempt. In addition, you are limited in how much you can protect your vehicle.
Answered on Jan 07th, 2013 at 12:48 PM
Richard hirsh
SSDI payments are exempt from the claims of your creditors even without filing bankruptcy. However you should be careful not to co-mingle the SSDI payments with any other funds and it should be kept in an account only in your husband's name, not a joint account. That will shield it from the wife's creditors. Bankruptcy would eliminate the medical debt.
Answered on Jan 07th, 2013 at 12:47 PM
Tax Problem Resolution Attorney serving Lake Oswego, OR
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THE WUHRMAN LAW FIRM
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Your SSDI cannot be levied upon for any debt, but you may find yourself in the position of having your account frozen for a time and having to go to court to prove that your account only includes SSDI money. This is one reason to consider a bankruptcy. Another one is that your SUV may be subject to attachment. Here in California, if someone wants to collect a judgment from you, they can attach your car and have it sold so long as it's worth more than $2,525. Even a 7 year-old SUV may be worth more than that, depending on its condition. Lastly, you may just want peace of mind. I file bankruptcy for many elderly and disabled people who just want the phone to stop wringing and to stop worrying when they go to the mailbox. It's not always absolutely essential - and I never twist anyone's arm to get them to do it - but some people just want that comfort.
Answered on Jan 07th, 2013 at 12:45 PM
Bankruptcy Law Business Attorney serving Asheville, NC
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Pitts, Hay & Hugenschmidt, PA
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I think it would be to your advantage to file the chapter 7. They can't get to your Social Security.
Answered on Jan 07th, 2013 at 12:43 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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SSDI can only be garnished for a handful of debts such as taxes or child support. It cannot be garnished for medical or consumer debts. A Chapter 7 can ease the calls and give you peace of mind, but you don't absolutely need one.
Answered on Jan 07th, 2013 at 12:43 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Social security income is exempt from levy in NJ. Filing a chapter 7 would however stop the creditors from harassing you.
Answered on Jan 07th, 2013 at 12:42 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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You certainly can be sued. It sounds as though the income is protected, but it is unclear whether the SUV would be protected.
Answered on Jan 04th, 2013 at 5:00 PM
Bankruptcy Attorney serving Denver, CO
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Colorado Bankruptcy Law Group, LLC
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SSDI is protected even if you don't file bankruptcy. If SSDI is your household's only source of income, bankruptcy will provide primarily psychological relief. Bankruptcy will stop collection calls, letters, and lawsuits. But if you don't file, your creditors won't be able to take your husband's SSDI benefits.
Answered on Jan 04th, 2013 at 4:59 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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It depends on where you live - each state has a different list of exemptions. Considering talking to a competent bankruptcy attorney to determine your rights. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Jan 04th, 2013 at 4:58 PM