Expert: Mark J. Markus- California Bankruptcy Attorney - 10/25/2010

Question
I am a retired serviceman and current DOD civilian living/working in Germany.  For many reasons, I find myself in ever-growing debt.  My question is how do I go about filing bankruptcy while living in Germany; do I have to appear at the dismissal hearing; and which chapter would be best for my situation?  My debts are as follows (estimated, not exact): ~ 20k credit card, ~ 20k car loan, ~ 13k unsecured loan and ~ 10k US government debt.  a few moths ago one of the credit card companies has begun garnishment of my retiree paycheck, and another has just gone to a collection agency.  The US Government debt has not started yet, but it will, and when it does, I will probably (98%) lose my current job with the government.  The other credit card, car loan and unsecured loan is not in arrears (allotments from my retiree paycheck).  My total income per month BEFORE garnishments, or paying any debts (to include allotments, taxes, etc) would be ~ 4,500 USD.  If (when) I lose my job, that will drop down to 1,900.  I have filed before in Arkansas with my ex-wife about 12 or 13 years ago, I do not remember which chapter it was (I know that we kept the car, but nothing else). I would like to just wipe all of my debt away and start fresh.

Answer
In order to file a bankruptcy in the USA you must have some assets in the USA.  This can, depending on the court, be as little as a bank account.  Your case must be filed in the district where your principal assets in the USA are located.

You must appear at the meeting with the Trustee (creditors' meeting) in your case unless excused by the US Trustee's Office.  I don't know if being a DOD employee is a sufficient excuse.  You'd need to check with the US Trustee in whatever district where your case would be filed.

I don't know what type of government debt you have, but if it is taxes, it is likely not dischargeable.

Mark J. Markus, Attorney at Law
http://www.bklaw.com/