bankruptcy income limits

What can creditors do if you can not pay and have limited income?

govn only income. Pensions are only assets approximately $ 20,000. Equity in the house and 5 years. old car. Creditors can force the sale of the house and car. Debt burden mtg $ 60,000 plus. Why bother with the bankruptcy, if creditors can not touch the pension and can not force sale of property, no equity left to a lawyer and real estate fees.

They have some very bad answers here … especially sophieb and boj12345 (our banker friend). First, note that each state has differant laws, which creditors and what is not allowed to do after a verdict. Some prohibit garnishing wages. Other grant generous exemptions on the grounds. So without knowing exactly what state you live, I can not give specific advice. I know they do not go to social security and pensions (as a sophieb …. Source of information you want?). Those are specifically prohibited under U.S. law. The creditors of unsecured debt (credit cards) can liens on your home court, and repo your car or property. But there are other options, they prefer to collect. Wage garnishments is the easist. Go to bank account works well. You can STATE refund checks (you can not hard Federal checks). Your situation is a bit trickier, because with $ 60k in debt you will have some serious problems. You have much equity in the home and will provide a nice target for this much debt. You need to discuss your situation with an attorney bankrutcy. Be a Pension would qualify your income, but you may have a problem with the home equity. Only a BK attorney can advise you, once he sees your whole situation. Wish I could help more.

Managing Debt in a Down Economy – Brad Stroh