Be Careful Not to Accumulate Too Much Debt When You Are On a Fixed Income
Be careful not to accumulate too much debt when you are on a fixed income. If you have been on a fixed income for years and then suddenly accumulate a large amount of debt, the United States Trustee’s Office, an office within the United States Department of Justice, may review your bankruptcy to determine whether you knew or should have known at the time you accumulated the debt that you would never be able to repay the debt.
As long as the majority of your debts are six months old or older, you are generally okay if the amount of your unsecured debts are not greater than about $100,000.00. Unsecured debts are such things as credit cards, medical bills, personal loans, payday loans, deficiencies on automobile repossessions, deficiencies on foreclosures, garnishments, judgments, and lawsuits. This is not to say go out and accumulate $100,000.00 in debt. In fact, most people on a fixed income who come into my office to file for bankruptcy have about $15,000.00 to $30,000.00 in unsecured debt on average.
The above information is a general overview and is not intended to be used as legal advice. If you are considering filing for bankruptcy, the best thing to do is call our office at 248-557-3645 and schedule a free consultation so you can receive advice which is tailored to your specific circumstances.
By: Michael Benkstein, Esq.
Managing Attorney, Bankruptcy Department
The Law Offices of Joumana Kayrouz, PLLC
1000 Town Center
Southfield, MI 48075