I was laid off in 2012. I continued to pay all debts until approx Jan 2016 when I ran out of money (including liquidating all retirement savings). I have been on disability since June 8, 2015. I was granted Social Security benefits - my only source of income - in July 2016. I have no car, no real property, no cash, no insurance, nothing which can be liquidated to pay creditors. I owe back taxes to state & federal. Both are now considered "hardship." I am considering bankruptcy, w/o an atty. SSI & SSDI auto deposits are exempt from garnishment, removing the court from the conversation, right? I chose not to respond to the summons. I expect other creditors to follow suit. Advice?
It is better to get out ahead of them. While SSI & SSDI direct deposits are exempt, that will not necessarily prevent a judgment creditor from trying to collect against them and forcing you to explain why they are exempt.
