How does one prepare for being homeless? I think I am headed that way..scared to death...in SE Texas?

Question

no family or friends to help....my IRA slowly but surely disappearing, as I have to withdraw money to pay for prescriptions and necessities...on SS disability...Uncle Sam just plain does NOT pay enough for one to survive on....HELP!!

Answer 1

You might want to consider a bankruptcy.  This will get rid of the old debts, inclusing hte house, if you'd like.

Then you can consider Section 8 house (housing where you pay a reduced rent).

What is the nature of your disability?  You are typing, so there must be some work you can do.  Could you check into a temp agency to do some receptionist work?  Or data entry?

No reason to be "scared to death" especially in Texas.  There are affordable places to live there, even on SSD.

Take a deep breath make out a budget.  If you can afford to live if you aren't paying your mortgage and whatever unsecured debt you may have (credit cards, medical bills) you may just need to file a Chapter 7 and get a fresh start.

Call your local bar association for a number for a bankruptcy attorney who does free consultations.  They'll help you get an idea of what your budget really is.

Honestly, most people on social security are considered "uncollectable" meaning creditors can't take your money.

Pulling from your IRA is just going to put you more in the hole because of the tax penalties.

Contact the state unemployment office.  They will be able to guide you to other agencies that provide help, food stamps, etc.

Good luck.  This is not the end of the world and you can still prevent living on the streets.

Ok, since you've added more to your question, I'll add more to my answer.

You say that you have too many assets because you own your house, but you aren't living there, but instead renting it out and then renting another place on your own. You say that is too much of a financial burden and more difficult when oyu are trying to afford other things.

Well, in bankruptcy you can get rid of that house.  It goes away as does any money you owe on it.  I'm sorry, but you need to consider filing a Chapter 7.  

I think you may have misunderstood what LegalAid told you, or they misunderstood your position.  If you want to file a Chapter 13 you need to be financially "well" enough to complete a 36-60 month repayment plan. That is not the case in a 7.

Again, good luck.

Answer 2

First realize that it is not the government's responsibility to support you.  It will assist you, but shouldn't be your only support.  

With that said, you should contact your local social service agencies: Catholic Charities is a good one to start.  They will provide meals and sometimes rent assistance.  You can also look into section 8 housing.  You might qualify and get a rent subsidized apartment.  Easter Seals will help you find employment that disabled people can do.  In Las Vegas, we also have Opportunity Village that does job training, but that might be a local agency.  Contact your local power company.  Many times they have assistance programs for people who can't afford their utilities.  The same for the phone company.  If you are elderly, then check Elderly United.  They can probably help with transportation and maybe your medication.  

Hope this helps.  If you can't find this information in the phone book, then go to the welfare office or a nursing home.  They should have a social worker who can point you in the right direction.  Good luck.