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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I will be 65 in June 2011. I currenly have 90K in credit card

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I will be 65 in June 2011. I currenly have 90K in credit card debt, and 94K in mortgages. My home is worthy about 125K. I have no other assests execpt personal belongings, and I own a 2007 Toyota Corolla. my income will drop to social security wages plus two small pensions. The pensions will total about 2400 per month, and my social security and my wifes will be about 3600 per month. I plan to declare a full chaper 7 bankruptcy at that time since I will meet the salary limits. Right now my living expenses are around 2500 per month without the credit cards( about 2000 per month). My two mortgages are about 1100per month, This does not include state or federal taxes.
My salary was just reduced from 160K to 97L due to short term disablility. I can still barely meet my monthly notes without going under. When I retire in June 2011 I will have to survive on he social security plus pensions. I understand social security income is not counted against you when you file chapter 7.

I live in Arkansas. The mean salary for bankruptcy is about 44000 not including social security wages.

With you knowledge could you please make a read of my chances for success at Chapter 7. Are there certain investments or other monetary actions that could jeopardize my proceeding. What roadblocks can you see. PS. I will also need to pay about 1000 per month for health insurancd for my wife after retirement until my wife becomes 65 (about 1.5 years) another .

Do they garnish social security wages

If you are wiling give my your best guess at my chances of success given the information above. If you need any more, please let me know.

Thanks.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.
Hello,

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Please respond with a Yes or No to continue.

Customer: replied 6 years ago.
yes
Expert:  Ellen replied 6 years ago.
Hello,


Thank you for your question.

Social Security may only be garnished for child support and tax debt. Social Security is not garnishable for any other type of debt. Pensions also may not be garnished. However both Social Security and pensions are considered in determining eligibility for a chapter 7 bankruptcy. Therefore you may want to consider not paying your credit card debt without filing bankruptcy
Customer: replied 6 years ago.
Would the pensions be garnished for ever until the debt is paid off or a portion of the debt if I don't file bankruptcy. Would I be able to keep any of the pension money?
Expert:  Ellen replied 6 years ago.

Most pensions and annuities cannot be garnished in Arkansas other than for taxes and child support
Customer: replied 6 years ago.
one more quick follow up. If I apply for chapter seven and meet the means test, will I be able to keep my house with the equity. If you do meet the means test, do you automatically win on the Chapter 7 application.

If I just stop paying the credit card debt can the companies sue for my home equity. ( about 35k)
Expert:  Ellen replied 6 years ago.

If I apply for chapter seven and meet the means test, will I be able to keep my house with the equity.

You may exempt your house subject to acreage restrictions. The acreage restrictions are: one quarter (1/4), of an acre in a city and eighty (80) acres for rural property.

If you do meet the means test, do you automatically win on the Chapter 7 application
.
if you meet the means test, you qualify to file a chapter 7 bankruptcy

If I just stop paying the credit card debt can the companies sue for my home equity. ( about 35k)
Your home equity would be protected from creditors to the same extent explained above
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