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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 12399
Experience:  JD, MBA
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Hello, I suffered a job loss due to a Medicare Whistleblower

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Hello, I suffered a job loss due to a Medicare Whistleblower situation. I have a lawsuit now but it is taking a long time to litigate. In the meantime, I have suffered great financial problems that have severely affected my credit. I am trying to hold off bankruptsy because it will affect my credit longer. My question is: Because I suffered a retalitation from a Medicare whistleblower situation and I have documentation of a lawcase, Can a attorney use this to help me clean up my credit? Is there anything people can do to restore their credit when it is not their fault and is a lawcase siutation?

Hello and thank you for allowing me to address your legal question.

The lawsuit does not help you with regard to your creditors that are not being paid. Unfortunately, they’ll want their money regardless of the circumstances that left you destitute, and they have a legal right to pursue you for the debts. However, your situation could be a factor in your lawsuit. If you win your case and are entitled to punitive damages, your financial problems should be presented as a factor in determining your award.

Does that answer your question? I truly wish you luck!

If the information that I provided was helpful, please remember to ACCEPT my post as that is the only way I will receive credit and compensation for my answer. Thank you and good luck!

DISCLAIMER: Please understand that the complexities of most legal problems cannot be sufficiently addressed in this setting. Accordingly, my post is intended as general information only, and should neither be construed as specific legal advice, nor as an adequate substitute for the retention of legal counsel.

Customer: replied 9 years ago.
Are you a bankruptcy attorney?
"Are you a bankruptcy attorney"

Yes, I used to work at a creditors rights firm that dealt with bankruptcy law almost exclusively. Are you interested in filing for bankruptcy protection?
Customer: replied 9 years ago.

Yes I think this is my only option, and probably chapter 13 as I cannot secure a job that makes enough money to pay my debt. My concern is will I ever be able to buy a house again, and do I have to give up my automobile. With my credit, I could not qualify to buy another car and do not have money to purchase one.

What is your opinion on filing bankruptsy in my situation?

If you cannot secure a job, then you will need to file for Chapter 7 rather than Chapter 13. Chapter 13 requires the debtor to make monthly payments into a 3 to 5 year plan to pay off the debt. Chapter 7 discharges the debt almost immediately...of course the catch is that your assets will be liquidated and the proceeds paid to the creditors. However, every state exempts certain property (i.e. certain property will not be liquidated).

Delaware seems to be a bit harsher than many in that a motor vehicle up to a certain limit does not have its own exemption. Do you own the car outright or are you making payments? If you're making payments then you can reaffirm the debt (i.e. you will continue paying for the car outside of the bankruptcy). If you own the car outright, then it may be sold depending on its value. If it's not worth much, then you can exempt it (there is a $500 exemption for any personal property). You can see all of the exemptions HERE. If it's on the list, that means it can't be sold to pay your debts.

As for buying a house, you will eventually qualify for a home loan. I've actually heard of people being approved for a mortgage the day after they are discharged in bankruptcy. Of course, that was prior to the current housing crisis that was partially brought on by giving those people loans. But even if it takes a few years, you will definitely qualify for a home loan at some point.

I hope I've been helpful. Please remember to accept my post. Thank you and good luck!
TJ, Esq. and other Bankruptcy Law Specialists are ready to help you
Customer: replied 9 years ago.
you have been very helpful and thanks so much for answering my questions. I may be able to do the bankruptsy and keep my car since its not paid for. I never thought I would be facing such a thing in my life. My credit was in the 700's before the job loss. Thanks gain.
Keep in mind that if your car has a lot of equity, then it's possible that it could be taken and sold even though it's not yet paid off (I apologize if I wasn't clear about that earlier).

I truly wish you luck. Please come back to me if you have future questions. Smile
Customer: replied 9 years ago.
I will. Thank you. Oh, my car has no equity as I bought it 6 months ago. Hopefully this will matter.