If you are only collecting Social Security then your creditors cannot garnish your wages and cannot freeze your bank account if the only source of income going into the bank account is social security. So why file bankruptcy? In some cases, we may advice that you do not necessarily need to file since the creditor may have no way to collect the debt from you. The key phrase here is “some cases”. No case is alike therefore we cannot provide any advice to you without looking at your entire situation first.  

So let’s say you are one of the people that the creditors cannot collect from so you are not going to file bankruptcy; that’s fine. However, that does not mean they will not continue to call and attempt to collect the debt from you. For many people, the phone calls alone drive them to file bankruptcy so they are not living day to day not wanting to answer the phone in fear that it is another debt collector.

Then we get to the people who are only on Social Security but that we do in fact suggest to file bankruptcy. These are typically people who have property in their names such as a house. Your creditors cannot garnish your social security or levy your bank account but they can put a lien against your real property. This may be reason enough to file bankruptcy, but again no 2 cases are the same. Depending on the amount of equity in your home or other real property, bankruptcy still may not be the best option for you.

As you can see, there are many different avenues depending on many factors. This article is not legal advice and should not be taken as such. A qualified bankruptcy attorney needs to look at your specific situation and then can advise you on the best course of action to take. Contact us today at 636-916-540 to schedule a free consultation. 636-916-5400.