What a mess... again.

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Bobaloo

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I'll give everyone a quick outline about my assets and income. I am on Social Security Permanent Disability. I get $860/mo. I own very little. I have a 1976 Mobile Home in a park, (homes like mine are going for $5000 MAX.! There is one down the block that is free!) I have a 1993 Jeep Cherokee with 251K miles on it, and a small utility trailer.
Naturally I have the usual houshold items, furnature etc... That's it.

I have about $20K in credit card debt! I have been using a debt settlement company for a large chunk of this debt. But have been struggling to pay the $253 a month to them plus pay my lot rent, utilities, insurance, gasoline etc.

About 3 yrs ago I filed bankrupsy (Chapt. 7) and it is discharged. So it's too soon to go that route again. So most of the cards are in collections now. The only card I still use is one with a $250 limit and the balance is under $100.

My question is... what would happen if I just stop paying on the cards? Will they toss me in the klink? They will try to garnish my checking account, but that's empty on the 4th of the month and the only thing that goes in is my SS check. Will they try to take my home? My Car?

What should I do? How much trouble will I get in? Should I get a lawyer?(I can't afford one). I want to put all this behind me and just keep my little card incase I need gas or a tire etc.

Thanks in advance................ Bob
 
It depends on the state you are in, since every state has its own laws as to what is exempt and what not. But often a home or mobile home up to a certain value would be exempt, as well as a car up to a certain value and usually all disability benefits. So it looks that probably all your assets could be exempt and therefore not be touched.

Of course you will understand that this is just a guess since we do not know the state you live in and the actual value of your assets.

You are aware that usually you have to wait 6 years since the last bankruptcy filing to file again. That actually will change under the new law to 8 years.

Also, from October on, the new law will make it a lot more difficult to file for bankruptcy, but in your case actually it might not make such a big difference except for the longer time that needs to be between two filings.

What you should do is find a non-profit debt counseling agency or legal aid society who could go through your case with you and find a solution that is workable or at least tell you what to do if the creditors are trying to sue you.
 
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Another asset?

I also have a small life insurance policy. There are some savings bonds that have my name on them jointly with my son. But they have my sons soc. sec. num. on them. They are my sons 100% my name is on it only "just in case".
 
Here you can see what property is exempted in bankruptcy in Michigan: http://www.bankruptcyinformation.com/MI_exemp.htm

There is also the alternative federal exemption. http://www.bankruptcyaction.com/fedexemptions.htm

Mind though, that this is bankruptcy law. Since you cannot file for chapter 7 after 3 years of the last filing, this might not apply.

Have a look at this website: may be these people are in your area. You should try to get some consultation with a group like this: http://www.lsnm.org/index.html
 
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