Expert: Terry Leeders - 9/4/2008

Question
All of my income is exempt from what I understand.  Social security and veterans benefits.  If my income can not be touched in court or garnished, should I even consider filing bankruptcy?  I inquired and he said that my social security was not calculated but my veterns benefits were and I would have too much disposable income after the plan so I did not qualify for chapter 7 and had to do chapter 13 and pay approx. $1200 per month.  I am lost.  I was told that why even file if all of your income is exempt , they can not touch it anyway.  Please advise.

Answer
While your income could be determined to be non-attachable, the creditors can still sue you, freeze your bank account, put a lien on your home, and otherwise ruin your credit with bad marks.  It sounds like you might need Chapter 13 Bankruptcy because of your means testing results analyzing your 6 months income.  Unfortunately, there isn't wiggle room with that analysis, and you should listen to your attorney as to your best plan of attack.