@Ladyluvvy wrote:I'll skip the sob story, except to say I was diagnosed with an illness and the cost of the new monthly meds that are "life or death" according to my dr have put me under. I had to stop paying credit cards a year ago. Just got my first civil summons notice of lawsuit from one of them.
I need help and cannot find it. I refuse to believe that a 64 yr old woman would be forced out of her home to pay unsecured debt. Never assume. Some states offer protection from that not all of them though. I would ask the BK lawyer how possible this is in NC.
Someone out there knows what I should do.I live in NC and the bankruptcy exemptions seem low. $3500 for a car and $35k in home. My car is worth 14k paid for, and my home is worth 250k. I owe 146k. My debt a year ago was 35k and is now 42k with fees and interest.
If I sold my home I will never be able to get into another. My credit is ruined FICO in 500s.
Lawyer says I will not benefit from bankruptcy, 7 or 13 either one. 13 because I can't make payments my total spendable income going to meds. Sadly the lawyer is correct. You have too much equity to qualify for a 7 and if you cannot make the payments a 13 isn't an option. With that equity the trustee would be forced to sell assets to pay the debt(s) off.
I have too many assets with 100k in equity. After costs, I might realize 84k. Paying the debt off I would be homeless with 42k for my retirement having lost the only investment I have.
I won't qualify for a home equity loan.If I must sell my home it will be a bitter pill to swallow.
Do any of you have any ideas? Options are a great stress reliever and I could use one or two. Thanks in advance for considering my situation.
Who is the creditor suing you and for how much? One option is to sell the car and offer a lower lump sum settlement. With the number of health problems you have you should qualify for low income handicapped public transportation services until you can get another cheap vehicle. Others may have some advice as well.
I would say you have to "get rid" of your assets. Give them to a relative or someone, leave yourself with nothing on paper. Otherwise, they will take it all.
I hope I'm wrong.
@kilroy8 wrote:I would say you have to "get rid" of your assets. Give them to a relative or someone, leave yourself with nothing on paper. Otherwise, they will take it all.
I hope I'm wrong.
BAD plan. There is a 2 year look back period where all asset transfers have to be disclosed. The BK courts and trustees are extremely wise to this form of hiding assets. Not only will they undo the transfer but there is the potential for criminal charges for fraud.
@Ladyluvvy wrote:I won't hide assets. I want to protect what I can legally. Had I known unsecured debt could so easily be converted to secured debt I never would have used the credit cards. It's looking like I'm going to have to sell my house. NC judgment power is not on consumers protection side.
What about a reverse mortgage? I do not know much about them but you could look into that before selling the home.
Do you qualify for any State Aide? (SNAP, Food Stamps, Unemployment, Disability, etc...) IF SO you may be able to become Judgement Proof without the need for Bankrupcy
Alternativly,
Court is expensive for EVERYONE -
work with the collection companies - go into an agreement.... I can pay $100/mo thats it... or else I may have to file bankrupcy. (Don't tell them you have assets)
You mentioned INVESTMENT Accounts... are they 401K/IRA? or Are they Cash Investments? Retirement accounts are generally exempt.
