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Now disabled and in default on all accounts, considering bankruptcy need advice


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Hi, my first post here. I red through lot of the threads and got some great info. Here's my situation on which I need some advice or affirmation. Thanks in advance.

In 2002 I was divorced, and since I had good paying job and all the credit cards were in my name I got stuck with all the debt. I was keeping the obligations current, however I had high child support and maintenance so I only paid the minimum hoping to get it paid off when my maintenance obligation end.

Then in Jan 2004 I was medically retired from my Fed Govt job. It took the agency till December 2004 to get the disability adjudicated so I went without income that whole year. That is when I fell behind on all of my debts and eventually they were charged off. I kept paying the car loan.

In Oct 2004 my car was repossessed while I was in VA hospital and had no way to pay the payments. During the reposession the car was damaged so they could not sell it. When I was d/c'd from the hospital I paid the car off with my disability back pay and got the car back.

All this time I was getting the phone calls and letters, but I really did not want to deal with it. Well today somebody tried to serve me with court papers so I finally got off my butt and did some research for the last eight hours. It looks like I will be filing for bankruptcy.

In essence I have no property except my 1999 VW Passat and 2004 Ducati motorcycle. I live in one room studio apt. I have income from Civil Service Disability, VA Disability, and Social Security Disability. I have $12K in my former TSP retirement fund which I never withdrew.

What chapter should I file, is all my income exempt from liens and garnishment, and what to do about the server who is trying to serve me the papers?

Thanks again

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All your income should be exempt from creditor seizure. I'd file a Chapter 7 if possible.

Just except service and be done with.

Depending on your nerve, you may not even want to file bk. If someone sues, show up in court with proof that your source of income is exempt from garnishment.

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Thank you for your reply.

So what would happen in the court if I don't file BK? Would they be able to take my car or bike? Both are paid off so they have couple of thousands value. Would there be judgement on my CR?

Sorry for asking these questions, but I could not find any case similar to mine, and I am totally out of loop on how all this works.

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I just found out that it's Wolpoff & Abramson. So far no judgements on my CR. I will call the courthouse tomorrow if any suit was filed.

I also pulled all three of my CR's and they still have me as working for the Feds and living in my old house that I was forced to sell by my ex-wife in the divorce. I will call CRA's tomorrow and get it changed to my real status. Anybody thinks that that would change their mind re the intended lawsuit?

Te server came to my door last night around 11PM and since we have intercom I did not let him in. Nobody showed today. Hm, I wonder if that was not just a ruse.

About the bike. It's the end of the season, and I was about to renew the registration. I am now thinking that maybe I won't, and if they ask me I say the bike was totalled and I had no insurance (which I didn't for some time last year). How do they find out what vehicles you have? After reading about W&A and all the horror stories, I am not giving them a cent.

Thanks for all your help. I am combat veteran suffering from serious PTSD. That was mostly why I was avoiding dealing with all this mess. Finding this Forum is like blessing to me. I now know I am not the only one so I feel little bit better. Thanks.

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LadynRed

I did not mean when filing bankruptcy. But if W&A in deed sue me and I go to court. Then all my income is exempted from garnishing, and what I was wondering if they will then do asset search and try to take the car and the bike. I am 100% disabled and car exemption in CO is $6K, but I'm not sure if that also applies to lawsuits or just BK.

In essence the car and the bike is all what I have to my name. Everything else I've lost in the divorce and after I lost my job.

How do asset search work?

I don't want to come across as somebody who is shunning responsibility, and after reading a lot more here on debt settlement I will be contacting some of the debtors with settlement proposals, but first I have to do some DV. During the divorce my ex wife opened two accounts that I caught but eventually was forced to pay off anyway and now looking at my credit report I have five Chase CC accounts on there. I only had two. So that needs to be researched, however this situation with W&A is I believe urgent since they may be filing lawsuit before all that verification can be done.

I am really new to this so be patient with me. I have been reading a lot the past few days. My next step is DV letters to the OC and CRA's.

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The state exemptions will cover you for judgments and/or bankruptcy. If the 6K can cover the EQUITY in your car and bike, then they can't be touched. Chances are they won't bother with either anyway because vehicles don't bring anywhere near what they may be worth in an auction and the creditors know it. Unless you're driving a Rolls, your car is probably safe.

I have no idea how an asset search works, but there are plenty of databases they pay for access to that allows them to find assets.

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IMO, yes you could file a 7 with no problem. It's a lot less of a hassle to deal with a Trustee than it is to be in collection hell with collectors like W&A! I guess I can now claim I'm an expert on bankruptcy because I did a 13 on my own from start to confirmation and thus far has succeeded without a hitch! I took the time to review cases and listen-in at 341 meetings and I knew exactly what to say and what not to say, etc. and the results were impressive to say the least! I don't regret the decision! I would advise anyone considering filing to be sure to get auto and home insurance, open checking and savings accounts, obtain employment, etc. prior to filing as some businesses and lenders will not want to deal with you for shear spite that you got off easy to a new life or have a mindset you'll write bad checks or something and run to bk court again. I filed for the sole purpose of forcing a mortgage company to reinstate and temporarily stave-off a huge condominium special assessment. The Trustee was impressed by the fact I didn't waste someone's elses money on a pricey lawyer and many have in fact written me letters after I filed wanting to be retained and included in my plan! One reason my case impressed the court was the fact the documents were professional appearing having been electronically filled in. I found it was worth the few bucks paid to US Legal Forms for the PDF's. The Trustee almost couldn't believe and asked three times under oath to verify I had not paid or been assisted by anyone. You can be sure in some cases bankruptcy is indeed worth the consequences and if I had it to do over again, I would! So, folks here is an example of a positive outcome! (At least thus far.)

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