Legal Question in Bankruptcy in Washington

Can I go bankrupt (chapter 7) with an income from the VA?

I am 23 years old and I am receiving $1,800 per month from the VA. I am disabled 100% through them and I also have a claim filed with Social Security with a hearing coming up on Aug. 11, 1999. Would it be a wise move for me to attempt to file for bankruptcy before my hearing? I have over $15,000 in debt that I am paying a debt consolidator $250 a month for. I am really suffering financially right now, but I don't want to end up in a worse situation by making the wrong move. Also, when you file for bankruptcy is it the household income that they look at or individual income? I am living with my fiance who makes about $100,000 a year, but most of it goes towards bills and child support. He really is focused on his own debt as I am with mine. Please help me!!!


Asked on 7/30/99, 3:57 pm

1 Answer from Attorneys
Dorothy Bunce

BK chapter 7 with VA income

In most state, disability income cannot be garnished or attached by creditors. Check your state laws to be certain - look for magic words such as "exempt from execution" and "homestead" - I am not familiar with Washington law on this point.

If this is the case, why are you paying old debts? They cannot be collected if you have only disability income. So why would you need to file bankruptcy and why are you paying money to a debt consolidator? The details of your situation will make an important difference in the advice you receive.

Your other questions become irrelevant in light of the issue of whether your creditors can collect money from you.

My suggestion is that you make an appointment to consult with a local attorney - you can certainly find a qualified one from the Law Guru Web site, pay his/her fee for an objective 1/2 hour consultation. It will save you a lot of worry and possibly even a lot of money.

By the way, if you are representing yourself before Social Security to save a few bucks, I suggest you reconsider. The standards Social Security uses are entirely different from the VA requirements. Most attorneys handling SS disability cases win and most individuals representing themselves lose.

Read more
Answered on 7/31/99, 11:52 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Washington