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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I currently have a Texas mailing address with family, residing

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I currently have a Texas mailing address with family, residing there occassionaly, but all my bills are incurred in Mexico because I do missionary work there in the English field. Recently a sold my home in Penna. (short sale), and came up approx. $17,000.00 short. The problem is my lending agent was USDA and they are pursuing the money by garnishing my only means of support for my wife and I--my Social Security check. I have explained in writing to USDA, that, will force me into bankruptcy because I owe an additional $15,000.00 in credit card debt. I was successfully paying that debt off monthly with Capital One, and I might add, always on time, but with USDA taking this action, I will be unable to pay off both debts. My questions are: Do I have any recourse to USDA's action since my monthly income before garnishment was only $1,180.00/mo, but now it is $959.50? and secondly, can I declare Chapt. 7 Bankruptcy because all my bills are in Mexico? Thank you, XXXXX XXXXX
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi JACustomer,

1) The federal government is allowed to garnish Social Security benefits at amount that does not leave the recipient with less than 30 times the minimum wages, which is about the amount that you will be receiving. However, you should be able to have this debt discharged in a Bankruptcy.

2) The fact that the credit card debt was incurred in another country would not affect your right to file a Bankruptcy.

I think this is what you wanted to know. If not, please let me know.

Thank you!

Edited by cfortunato on 10/6/2010 at 1:49 PM EST
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