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

Asked over 1 year ago - 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. Paula Brown Sinclair

    Contributor Level 20

    19

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    Answered . 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. Michael Raymond Daymude

    Pro

    Contributor Level 20

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    Answered . 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... more
  3. Brian Crozier Whitaker

    Contributor Level 17

    15

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    Answered . 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.

  4. Michael John Harrington

    Pro

    Contributor Level 17

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    Answered . 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... more
  5. Steven W Zachary

    Contributor Level 17

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    Answered . 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

  6. Gary D. Bollinger

    Contributor Level 19

    14

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

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