Legal Question in Bankruptcy in Texas
I live in TX and had a boat repossessed 2 1/2 years ago. The loan was for 45K and I as 2 weeks past my due date, the bank repossessed the boat. I tried to talk to them but all they said was I could continue to send in my monthly payment, but they were taking the collateral anyway. I had the boat up for sale and had just put 20k (cash) into repairs, new generators, cleaning a month or two before they took the boat. A couple of days ago I received notice that I was to be in court in 3 weeks because the bank is suing me for 33K and seeking a judgement against me. I don't know what to do because I don't have the money to hire a lawyer, I only have 3k in the bank, no 401k and no retirement. I am 49 yrs old, owe on everything I have, home, car, furniture. Can they take everything I have & sell to pay this? Am considering filing bankruptcy. My health insurance is 1200.00 month, my medication for asthma, sleep apnea, etc is 300.00 a month, it goes on and on. I can not work full time anymore because of the extreme fatigue from the sleep apnea.
2 Answers from Attorneys
If you have 3K in the bank, you have enough to hire a bankruptcy attorney. One of the problems in filing bankruptcy is that the court does not have the power to restructure home mortgages. Your only option is to give up the home, and erase the debt or reaffirm the debt and continue making the payments.
If the bank takes out a judgment against you they can only seize non-exempt property to satisfy the judgment. Your home, your car, your furniture, your clothes and most of the "stuff" you have is going to be exempt property. Even retirement accounts are exempt property. Cash in the bank is not and can be seized.
Have you considered using your health insurance to have the sleep apnea treated?. That would enable you to work more.
I agree with what Mr. Engelke has written. If you don't mind the debts on your credit report and maybe a judgment lien on your real estate, then you don't necessarily have to do anything. If you'd like to keep your property but get rid of all your unsecured debts, then a bankruptcy can do that for you.
Description of the process: www.214bankruptcy.com/how-bankruptcy-works/
How much bankruptcy costs: http://www.214bankruptcy.com/prices/
Dallas Bankruptcy Lawyer
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