Chapter 7?

[flyingbackwa]

I have only $8.9K in credit card debt, but lost supplemental income about the same time of the nation's financial collapse, so only have my SS disability income, slightly over 12K per year. Course unable to pay credit card debt.

Just before this happened, a dying relative told her husband to sell her car to me for $100, which checking with KellyBlueBook.com, claims it is worth over $4,000.

All my other assets are less than $1,000.

Decided to move to Michigan for my health (Florida heat is too much at my old of 65) and able to sleep better in milder climate.

Month later got a notice that one credit card debt purchased by a legal firm sued in small claims (Florida) court, my guess is I now have a judgement against me.

Your advice please, as soon I feel I should file bankruptcy.

Thank you,

flyingbackwa

[drowning123]

What have you got to lose? I say go for it. Even if it's just for peace of mind.

[BKAttyMI]

Sounds like a simple Chapter 7 would be the answer. The problem you're going to have is saving up the money for filing.

[keepsmiling]

Sounds like you qualify for some pro bono help from Legal Services. Might be worth making a coupla calls. Good luck!

[SunshineGal]

I'm sorry to disagree with the other posters, but I don't think I would personally file for such a low amount. Even if a FL court awarded the judgment, the creditor can't garnish SS income so right now your pretty much uncollectable. If something happens and you were to end up with high medical bills, you wouldn't be able to file again for another 8 years.

[flyingbackwa]

I'm sorry to disagree with the other posters, but I don't think I would personally file for such a low amount. Even if a FL court awarded the judgment, the creditor can't garnish SS income so right now your pretty much uncollectable. If something happens and you were to end up with high medical bills, you wouldn't be able to file again for another 8 years.


Thks SSG;
Beginning to appreciate your point, however they can still harass me to death.... on the other side of the coin, can the judgement debtor put an attachment on my car, which is paid for, and valued at (KBB) $4,200?

I haven't had a near new(er) car for decades, and want to make this one last to my death!

Thanks,

FB

[discouraged]

It just was so much relief to me to be done with it. I've been out of work for almost 3 years (2 long tern temp jobs have kept me afloat) so although I was 'judgement proof'. Better to keep the car you have than to let it go for a judgement. Try legal services, as suggested, or just save up. It's worth it in the end.

[ValleYum]

There is an Elder Law of Michigan hotline. They had an excellent PDF file on the site about garnishment. Make sure all your SS money is not co-mingled in a bank account with any other monies - this helps clarify to the bank that it is not able to be attached by a writ of garnishment.

Some resources for you:

http://www.elderlawofmi.org/

Phone: 517-485-9164
Toll-Free: 866-400-9164

Legal Hotline for Michigan seniors: www.legalhotlineonline.org




Hopefully they can tell you about your car and it's possible exemption and perhaps point you to legal aid or a reduced fee attorney in case you do decide to file bankruptcy.

Good luck!

[AngelinaCatHub]

If you were not personally summoned for a suit, the Judgment should be set aside. I doubt that they will serve you as far as you live away from the venue. So to date you don't have a problem. If you are called admit to nothing but get the address and send a C & D letter. Don't panic into bk yet. If you get a summons then act, it only takes a bit of time and not time at all to file. You can get the filing fee forgiven as indigent so that is not a problem either.

Things to think about: How long have you been in MI? What is MI car exemption amount. In FL it is only 1K. You can go online and find Public Records for your FL county to see if a Judgment exists. Then write to the Judge regarding improper service if you did not get a summons. I did this when I got a default Judgment the day I got served. The Judge signed the wrong paper so she just vacated the Judgment. The suit never went anywhere after that.

I think you are prematurely worrying. Hold off a bit longer. MI car exemption $2950 so they won't go after your car. They can't get you SS. You are collection proof. 'Hub

[flyingbackwa]

If you were not personally summoned for a suit, the Judgment should be set aside. I doubt that they will serve you as far as you live away from the venue. So to date you don't have a problem. If you are called admit to nothing but get the address and send a C & D letter. Don't panic into bk yet. If you get a summons then act, it only takes a bit of time and not time at all to file. You can get the filing fee forgiven as indigent so that is not a problem either.

Things to think about: How long have you been in MI? What is MI car exemption amount. In FL it is only 1K. You can go online and find Public Records for your FL county to see if a Judgment exists. Then write to the Judge regarding improper service if you did not get a summons. I did this when I got a default Judgment the day I got served. The Judge signed the wrong paper so she just vacated the Judgment. The suit never went anywhere after that.

I think you are prematurely worrying. Hold off a bit longer. MI car exemption $2950 so they won't go after your car. They can't get you SS. You are collection proof. 'Hub

Well, not directly summoned.

A process server dropped off the papers, more than a month after leaving Florida (6/3), and landlord mailed onward, and via E gave the gist, which court I must appear (or my lawyer) which both are cost prohibitive, on Aug. 11th....this is why I assume judgement may have been cast. Never really looked at the paper work, beyond first page anyway. Didn't want an ulcer, or another by-pass.

Per Kelly Blue Book, even in fair condition this FL car is valued at $4.2k, and as you state, exemption in MI is $2950, would that not mean debtor (lawyer) would attempt to pursue anyway? This assumes they know where I can be reached in Michigan.

Thank you again AngelinaCatHub, appreciate your insights.

All the best,

flyingbackwa

[BKAttyMI]

MI uses federal exemptions, which means vehicle exemption is $3450. You'd have plenty of wild card exemption to cover your vehicle, you would not lose it in a bankruptcy case. If it's peace of mind you're after, a bankruptcy may be worth it for you.