Too many judgements and don't know what to do?

Question

My spouse and I are disabled with an 9 yr. old child. We have gone through alot of hardship and recently lost our home. Many of our creditors have turned us over to collection agencies for credit card debt and filing judgments. We can not file bankruptcy(had one 4 yrs. ago) when we both became ill and disabled. We are barely making it and have sacrificed everything. We have less now then we did 12 yrs. ago when we got married. My father-in-law wants us to move in with him and he wants to will his home to my us. We are afraid that if he wills his home to us these creditors will try to take it and this would be devastating as he just wants us to have a home to raise our daughter.

I am so upset that I can not sleep. My spouse has heart problems and a neuromuscular disease and is undergoing alot at this time, so I am trying to deal with this pretty much on my own, is their anything I can do?

Is the judgments just something that will go on our credit, or will they take us to court? Is there any hope for us? The bank that we had our home through charged it off instead of foreclosing and we have literally nothing. I am so lost and ashamed. We are not bad people we have just had so much to endure.

Answer 1

First of all, I am sorry to hear about your problems, but your family is not the first to go through this.

If you are receiving SSDI and it is your only income, then the creditors can not do anything.  Federal law prohibits garnishment or seizure of any income form either SS,SSDI. SSI or VA Compensation.  The only time it can be garnished is if the government has overpaid you or you owe back taxes (federal).

If you are not receiving SSDI and the both of you have been out of work for at least one year, then hire an attorney to file a claim for you.  If you get your benefits they will be retroactive.  Use an attorney, do not do it on your own as Social Security is hard to deal with alone.

As to the house, put it in your daughters name, they can not touch her assets.  Of course she will have to pay an inheritance tax when she does receive title to the house.  The creditors can not touch the house or place any liens on it as your father is not the debtor.

Last but not least, do not let the creditors intimidate you.

THREATENING DIRE CONSEQUENCES IF CONSUMER FAILS TO PAY: The FDCPA bars debt collectors from making threats as to what might happen unless the collector has the legal authority and the intent to take the threatened action. Among other things,  collectors threaten to initiate civil suit or criminal prosecution, garnish salaries, seize property, cause job loss, have a consumer jailed, or damage or ruin a consumer’s credit rating. Sections 807(4)-(5), 15 U.S.C. §§ 1692e(4)-(5

Hope this answer is of help to you

LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice

Answer 2

I am so sorry that you are going thru all this. Well know that you can not go to jail for debt and if you aren't working they have nothing to garnish. And you can put that house that's going to be willed to you under a TRUSTED family members name?

Don't be ashamed this happens to many people,its more common than you think.