bankruptcy with SSDI and V.A. Disability?

Question

I owe 10,000 on a car that got reposessed. Thats the only thing I owe on but thats quite a bit. My only income is SSDI and disability from the V.A. How do I go about filing a bankruptcy? Is that going to classify me as financially incompetent? Will I be cleared of all my debt and be able to start over fresh? Or will I somehow haveto pay them money? I just dont understand, I have been told that even if you file bankruptcy you still haveto pay creditors... So whats the point? Is there any way to wipe out my debt completely (in kansas) without having to give anything to creditors?

SSDI and V.A. disability are protected in the fact that nobody can take my money. Infact they dont even count as income what so ever... So thats why I am so confused. I technically have NO income....

Answer 1

Hi. As you are probably under the income median for your state, you can, most likely filed a Ch. 7 which will "erase" all debt owed, aside from any secured debt that you are keeping. You will be required to attend credit counseling prior to filing bankruptcy under the new bankruptcy law. But that can be done over the internet. Contact a bankruptcy attorney or the federal courthouse in your area and there can provide with that information. The only creditor you will have to pay are those in which they have a security interest and you are keeping the property. For example, if you have a mortgage and your are not surrendering it in the bankruptcy, you HAVE to continue to pay the mortgage. Bottom line, if you keep it, you have to pay for it. Hope this helped.

Answer 2

I was on the same situation and this site helped me CREDIT-COMPARE.NET-

RE Bankruptcy with SSDI and V.A. Disability?

I owe 10,000 on a car that got reposessed. Thats the only thing I owe on but thats quite a bit. My only income is SSDI and disability from the V.A. How do I go about filing a bankruptcy? Is that going to classify me as financially incompetent? Will I be cleared of all my debt and be able to start over fresh? Or will I somehow haveto pay them money? I just dont understand, I have been told that even if you file bankruptcy you still haveto pay creditors... So whats the point? Is there any way to wipe out my debt completely (in kansas) without having to give anything to creditors?

Answer 3

If the car has been repossessed, you should no longer owe anything on it, unless you want it back. Filing bankruptcy is like saying you can no longer afford to pay your debts. A bankruptcy hearing is scheduled and you assets are assessed to see how much you can reasonably pay your creditors. Your needs, such as rent and food, are measured against your income. If it is determned that you can afford to pay some of your debts, a payment schedule is worked out. Either way, with or without declaring bakruptcy, your credit is pretty well shot for a while.

Answer 4

You really want to think about the reprecussions of Bankruptcy for only a $10K debt. If it was $100K I would say do it, no problem. Bankruptcy will mean no credit for the next 7 years. You will have to pay up front for everything.

If the VA and SS declare you incompitent they will assign you a payee. That person will get your checks and you will get an allowance. They will make sure your debt is paid. You need to pay $400 a month on your debt until it is gone.

Answer 5

You will be required to enter "credit counseling" prior to filing for bankruptcy. Because you have two sources of income, they may require you to pay back your debt over a longer period of time. If your income is low enough and you are permanantly disabled, they may discharge your debt. This will harm your credit rating for many years.

It sounds like you are exactly the kind of person who is meant to file for bankruptcy. Contact a local attorney for more assistance. The VA office may have valuable information for you as well.

Answer 6

http://finance.yahoo.com/how-to-guide/banking-budgeting/29241#c1

Link above answers the following questions about bankrupcy:
Why Avoid Bankruptcy?
What Is Bankruptcy?
Who Should File?
Drawbacks to Bankruptcy
Alternatives to Bankruptcy
Where to Turn for Help

Answer 7

becuase of the new bankruptcy laws you have to go through credit counseling first call them on Monday.

Answer 8

i'm going to be fake effect what you assert so permit me provide you something to think of approximately..... a million. you assert SSDI and VA incapacity...(till they have replaced the regulation, you won't be in a position to be getting the two...Social secure practices incapacity and VA incapacity.....you will be getting VA incapacity and if that quantity is small, you will be getting SSI additionally....yet no longer SSDI) in case you mean you're growing to be to be SSI (Supplementary earnings) then that forestalls as quickly as you bypass away the united states...and then your basically earnings may be VA incapacity. so which you may desire to to be optimistic whether this is SSI or SSDI which you're growing to be to be. occasion: as quickly as I fIrst utilized for SSD i develop into instructed to additionally follow with VA and that i did...interior the long-term i develop into given a variety of drawing VA incapacity or Social secure practices incapacity...to be honest i did no longer decide to entice VA as a results of fact i do no longer think of my incapacity got here approximately there....or maybe however i develop into no longer the excellent sailor on the time (17years previous) I honestly have too plenty admire for the army to declare that I my subject all started there....I labored and paid in My social secure practices so I felt tender going that way. My SSD is adequate that I in no way drew (Supplemental earnings) so as quickly as I moved to the Philippines My earnings remained the comparable....this is authentic that on SSD ALL my scientific and meds...might desire to come from my own pocked...I cann't use the VA hospital in Manila as this is for Retired protection rigidity and protection rigidity Disabled and besides I stay in Cebu (TOO a techniques...LOL) My verify is direct deposit right into a Philippine financial business enterprise in Pesos no longer funds.... (how ever in order that which you would be attentive to, i recently found out from MY NEW financial business enterprise and the SSA officer from Manila that I met in individual right here....there quite isn't direct deposit to a Philippine financial business enterprise.....as a manner to DIRECT DEPOSIT, THE financial business enterprise right here might desire to be linked with AN AMERICAN financial business enterprise interior the U.S. 'as an occasion mine is linked with Wells Fargo, I honestly have 2 account numbers one right here and a million for Wells Fargo interior the States.-the money is going there first then they -the american financial business enterprise-sends it to the Philippines........) they only call it direct deposit to maintain the confusion down.

Answer 9

The most appropriate site for your question –
http://www.usalegalcare.com/Bankruptcy.htm

Trust me its good