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I have become homeless and have outstanding debt and medical bills around 10k, can i file a bankruptcy, pending WC settlement?

Riverside, CA |

due to unsuccessful attempts to return to work i have exhausted all my funds, ran out of state disability insurance, got my car repossessed and am unable to pay for the most basic needs. i am living off food stamps and since riverside doesnt give general relief like los angeles county does, there is no cash assistance. i am still waiting for my workers comp to go to trial which could be a long while. I dont even have money to pay an attorney at this point and i have never been so broke in my life and this is the first time on my life i had to go on welfare which can only go for food stamps and is less than 200 per month. do i have to wait for my settlement or can i file bankruptcy now to keep the creditors off my back help......

Attorney Answers 6

  1. Best answer

    Mr. Daymude is correct in that it appears you have nothing to protect at present. However, you would benefit from a consultation with an experienced bankruptcy practitioner to learn more about how the system works and prepare effectively for receiving your settlement. Many of the best offer consultations at no-cost/no-obligation and if you find one that is helpful now, you will know who to hire when it is time to file your bankruptcy or you need asssitnace in negotiating settlement with your creditors.

    In the meantime, you are not required to have a conversation with any creditors, but if you are trapped into one, tell them you are unemployed and homeless and counsel advises you are collection-proof and have a nice day.

    Best wishes for a favorable outcome, and please remember to designate a best answer.

    This answer is offered as a public service for general information only and may not be relied upon as legal advice.

  2. Why would you want to file bankruptcy? You have nothing to protect. If you are homeless your creditors cannot contact or harass you. You're judgment proof. Wait until you have something to protect. You can only obtain a discharge once every 8 years. So, it makes sense to wait until you have assets to protect. Good luck.

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for general information only. They are not legal advice. Answers must not be relied upon. Legal advice must be based on the interplay between specific exact facts and the law. This forum does not allow for the discussion of that interplay. My answer to any specific question would likely be different if that interplay were explored during an attorney-client relationship. I provide legal advice during the course of an attorney-client relationship only. The exchange of information through this forum does not establish such a relationship. That relationship is established only by personal and direct consultation with me followed by the execution of a written attorney-client agreement signed by each of us. The communications on this website are not privileged or confidential and I assume no duty to anyone by my participation on Avvo or because I have answered or commented on a question. All legal proceedings involve deadlines and time limiting statutes. So that legal rights are not lost for failure to timely take appropriate action and because I do not provide legal advice in answer to any question, if you are an interested party you should promptly and personally consult with an attorney for legal advice. Also, see Avvo's terms and conditions of use, specifically item 9, incorporated by this reference

  3. Work on getting your health back and your Workers Comp case resolved. As far as creditors are concerned, you don't have to talk with them. Tell them you wish for everything to be sent in writing and when they ask you for your address let them know you are homeless. That should slow some of the calls. Good luck with your recovery

  4. From your recital of facts, you only file bankruptcy now if it improves your chances of protecting the WC settlement.

  5. All good advice by the others; but to answer your question ... No, you do not have to wait for your settlement to file BK. In fact, if you are going to file, it might be better to file BEFORE your settlement since it is more easily exempted before it becomes money in the bank.

  6. You seem to be judgment proof and should focus on rebuilding your life now, rather than the bankruptcy.

    The answers on this discussion board are general in nature and NOT intended as legal advice. Responding to questions does not constitute an attorney-client relationship. Always see a lawyer about your individual situation.

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