What I decide to do.

[DYLAN150]

First, I know some of you may disagree with my decision but that's ok. I am in my 60's and living on my Social Security and Disability. I purchased this home a few years ago and the equity in it has been declining from about 65k down to about 22k currently. If I sold it, closing cost's and realtors fee's would eat that up. The homestead exemption in this state is 125K which leads me to believe that creditors can't really touch this house for a long time, most likely never. ( in my life time left) I currently has a car but it is a lease vehicle with a fairly small payment. I currently have about 95K in credit card debt. I have talked with several attorneys in the last two months. Of course they want me to file a chapter 13, that's there business. The payment would be about 2K a month. (5 years) But they all said this: If I do nothing, just stop paying the credit card companies, they can't really do anything. Phone Calls, filling out some exemption forms, being serve with court papers. Maybe a debtors exam or two. So that's what I decided to do. If I was in a different situation my decision would probably be to file a chapter 13. I am getting all my checks change over to paper or have already got the social security direct express card. Everything I owe fit right into the allowable exemptions in this state,. I don't own a boat, condo, RV, timeshare or anything like that. I realize that my situation is my fault and responsibly and maybe I can settle with some of the companies in the future.

[moneyblues]

I see nothing wrong with your decision because that it's your choice and your life. I don't think it matters at this point who's fault it is. It matters about the quality of your life right now and how happy you are and I hope your not planning to die soon. Live till you are a 100+ and dance, laugh and let the wind blow through your hair. Life should be good for you right now so enjoy it. If you decide to file, why not 7? I feel if your going to file, go 7 and go play or just stay on the porch. IMHO

[DYLAN150]

They all said I don't qualify for a chapter 7. I did the means test on line three different times and failed it plus two attorneys said the same. I received Military retirement, VA disability and Social secuirity. The Social Security gets added to the means test in the payments at the end from what i am told.

[shark66]

I received Military retirement, VA disability and Social secuirity. The Social Security gets added to the means test in the payments at the end from what i am told.

As long as none of the above can be touched by the creditors after they win a judgment, you're in the clear...and your plan is an excellent one. Just verify that fact with an attorney or two or seven...

Enjoy the golden years.

Good luck.

[help1234]

Verify that your military retirement in untouchable. We have exactly the same income sources as you, and were told VA and SS were untouchable, but not the military retirement.

[DYLAN150]

Retired service members of the U.S. Armed Forces will be happy to know that their retiree pay cannot be garnished to satisfy credit card debts, according to the Defense Finance and Accounting Service. However, federal law does allow military retiree pay to be garnished in order to satisfy child and/or spousal support obligations and taxes.

[DYLAN150]

Plus, just read this on line:
Garnishments/Withholdings

Unlike active duty pay, military retired/retainer pay cannot be garnished for commercial debts (i.e. credit cards, automobile loans, ect.) Military retirement pay can, however, be garnished for alimony, child support, IRS Tax Levies, and debts owed to the government (i.e. student loans, PX/BX Deferred Payment delinquencies, Officer/NCO Club payment delinquencies, ect.)

Additionally, under the provisions of the Uniformed Services Former Spouse Protection Act (USFSPA), state courts *may* treat military retired pay as joint property between the member and the spouse during divorce proceedings.

[help1234]

Well, based on everything you have found, it sounds to me like you have a workable plan of action. We probably should have researched it more, but took the word of our attorney on that one item. Funny... I double and triple checked everything else.... just not the one thing that might have kept us out of BK.