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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15592
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Bankruptcy due to Medical Problems

Resolved Question:

Due to medical reasons, I lost my job, had a couple surgeries within less than a year, and had an overlapping problem that I am in PT for currently. If someone has no job can they file for Chapter 7 or Chapter 13 bankruptcy? I am current on payments, but have had to use some retirement funds to stay current. I am not sure I will be hired again in my profession, as I have been around all the medical systems, and am a healthcare professional. I am concerned I will not make above minimum wage, or if I work in my profession, I would have to give up custody, leave my family, and elderly parents behind in order to find someone to hire me out of the state where I cannot be looked up in an HR system. I am afraid the employers will not want to hire healthcare professionals at my age who dared to have a surgery. The healthcare is what you call self funded or self insured, and I forget the difference. I might be wrong, and hope so, but I am worried. In any other profession, pay will be nominal, and there would be no way to pay off the kind of debt I now have and also pay for water, electricity and food, even if I just rented a one bedroom apartment. Currently I am paying COBRA rates for insurance to try to get better, which is not helping. What kind of bankruptcy might I qualify for if I decided to file bankruptcy versus debt resolution, considering at the moment I do not have a job? Would the answer be different considering I might receive a few months of disability benefits, which I expect would be temporary as I am hoping I will continue to improve, but might not have a job lined up when the benefits end? I might not even get approved for benefits, or it might take many months, and again I am sure it would be temporary. In my profession, people are not hired with restrictions. The disability policy is a regular occupation policy with a residual rider, and therefore it is risky to take a minimum wage job, as financially I would come out behind, as opposed to if I receive temporary disability benefits based off a valid claim as I cannot do the lifting needed for my profession. I am also s/p divorce, so when the marital home sells, in Maryland, is there any difference regarding if I file Chapter 7 versus Chapter 13 as far as coming back then for the equity, and what about for the disability pay if it is not social security disability? P.S. Only I have been making payments on the marital home for a years, and apparently have no way to be compensated for that by re-figuring the percentage of equity. However, it is the third marital home, with considerable equity. Do I loose it all if I file bankruptcy, and then does my ex. get all the equity even though I have been the one paying the full mortgage for years? Also, there is a lien on the home, which is money he owes me, so would I loose the lien? Personally, I couldn't have been set up better if someone had planned it, as the lien against the home was used to compensate me from money taken from an ERISA qualified retirement account, rather than adjusting an order where I could get money by way of a QDRO, which was not fair as it was money meant for my retirement. You would have to have heard the financial details of the 24 year marriage to understand that, but nevertheless it risked what should have been protected money, while allowing the person whom committed adultery, was abusive, to essentially break what should have been a contract regarding the home and use money taken from marital accounts he did not disclose in court, in fact was deceptive about, to put himself in a financial position to buy him own 2nd home within weeks of leaving this home. Then in order to not financially strain him, as apparently as a woman I am worthless and straining me did not matter one bit, he was allowed to pay back child support arrears at $50.00 over many years, something like 7 or 8 years, and mortgage arrears were tacked on to the sale of the marital home so I could loose that. He only had to help with less than 1/4th housing costs for just barely over a year, but by the time we had the last trial to correct for an error that essentially listed my IRA twice and about money he dissipated from accounts by the time the last trial was completed I only got three or four months of assistance of $500.00. Considering the divorce, paying for the mortgage and maintenance, the legal fees, the medical problems, and loosing a job, and I have noticed I did not get a child support payment so far this month, when usually I would within the first four days, and it is supposed to be garnished, what type of bankruptcy would I file for.  The problem is I stand to loose in equity of the home if I try to pay credit cards versus the mortgage company, and if I do not pay the mortgage, even renting would be affected, so I have to also consider my son, and the impact it might have on me being able to live with my son. 

Submitted: 9 months ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 9 months ago.

WALLSTREETESQ :

This is an unfortunate situation,

WALLSTREETESQ :

if you have no income you can file a chapter 7 bankruptcy and discharge your debts,

WALLSTREETESQ :

a chapter 13 would not be possible as you have no income to pay a chapter 13 payment plan,

WALLSTREETESQ :

In terms of a chapter 7 and your properties,

WALLSTREETESQ :

you would lose any home that has non exempt equity,

WALLSTREETESQ :

some equity typically is exempted, however each State has their own limits,

WALLSTREETESQ :

Up to $21,625 of equity (if your home is worth $120,000 and you owe $60,000 on the mortgage, you have $60,000 of equity in your home) in any real property (house, condominium, or co-op) that you use as a residence. The Maryland homestead exemption may only be claimed once every eight years and married couples may not double the homestead exemption. Md. Code Ann., [Cts. & Jud. Proc] § 11-504(f)

WALLSTREETESQ :

Married couples that file a joint bankruptcy in Maryland are allowed to “double” the exemptions. This means that you and your spouse may each claim the full exemption amount for any property belonging to you. You may only claim an exemption and protect property that belongs to you.

WALLSTREETESQ :

If your equity is limited, you can file a chapter 7 on your debts, and keep your home if you pay the mortgage

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

Expert:  WALLSTREETESQ replied 9 months ago.
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Customer: replied 9 months ago.

"If your equity is limited, you can file a chapter 7 on your debts, and keep your home if you pay the mortgage"



This is the problem as my share of the equity would be greater than my debt, yet the debt will be too great to pay as I cannot access the equity in time,




Expert:  WALLSTREETESQ replied 9 months ago.
Then I would not pay the debts, and keep paying your mortgage, if you have limited income the creditors will receive very little if anything.

Also, consider transferring the deed of your home to another name so you can protect it from creditors.

Also, IRA, disability, and Social security cannot be garnished by creditors.
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15592
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you

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