On STD, going on LTD, lower income, can’t pay credit cards…

September 30th, 2006 by Questions

I will be going on Long Term Disability soon, and in which you only get 60% of your wages, even without taxes taken off, I will be receiving less than $1600 per month. I have car loan, insurance, rent, hydro, phone, cable and mac and cheese diet….that new income will cover all that, but not my Credit Cards.
I think that while on LTD the creditors cannot garnish my disability income (work insurance provided). But I want to know if i should just file for personal bankruptcy and get it over with, but i cant pay anything at all into a bankruptcy and i have no assets except the car. Car is worth less than 5650.00. I want to keep the car as I have paid so much for it so far, it would be a huge loss to lose it now.
What should someone in my position do? Does anyone know if creditors can garnish my disability income? if they can, should i go bankrupt eventhough i have no way to pay for anything other than my living expenses and car payments.
I do not know when i will be back to work and off disability, so i am not sure if i should go through bankruptcy now or later.
any advise will be appreciated, Thanks


One Response to “On STD, going on LTD, lower income, can’t pay credit cards…”

, A licensed trustee said:

For most people the purpose of filing for bankruptcy is to prevent their wages from being garnisheed. Since you have no wages, they cannot be garnisheed, so it may not be necessary to go bankrupt. If your disability cheque is coming from your employer in the form of a paycheque, it may be possible for it to be garnisheed, although that is unlikely. I suggest you contact a licensed trustee to determine if a bankruptcy is in your best interests.

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