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    kimmer91k's Avatar
    kimmer91k Posts: 6, Reputation: 1
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    #1

    Oct 17, 2009, 08:25 AM
    Disabled and In DEBT!
    I am disabled and have over $50,000 in debt. (Repossesed car, medical bills, credit card bills and student loan). I need to file for bankruptcy. How do I determine what will be covered? I was told student loans can not be on bankruptcy. Since I'm permanently disabled, do I qualify for chapter 7? Is there any agency that helps people in my situation pay for bankruptcy attorney? Or any agency that will provide free legal advice?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Oct 17, 2009, 09:57 AM

    Disabled has nothing to do wiwth qualify for chapter 7, it has to do with debt to income ratio and the amount of equity in specific items.

    You may check with the legal aid society of your local area, also most offer payment plans
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
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    #3

    Oct 17, 2009, 10:15 AM

    No, student loans are not dischargeable in bankruptcy.
    DisabledinMD's Avatar
    DisabledinMD Posts: 68, Reputation: 0
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    #4

    Oct 17, 2009, 10:39 PM

    Are you on disability payments such as SSI or SSDI? Or similar? Generally, they are not garnishable, so none of your debts can be collected, even if the creditors obtained a judgment. The exception is the student loans, a percentage of your disability income can be garnished to pay the student loans.

    And if you have other income, that would be garnishable as well. But if your only source of income is disability payments, you are collection proof with the exception of the student loans. Since you will still have to pay the student loans with Chapter 7, should you even bother with it?

    Legal Aid may be able to assist you, so it wouldn't hurt to ask.
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