Q: I bought a mobile home with a FHA loan. I got behind and it was turned over to the Treasury Department.
I had to move out and the owner of the property filed eviction papers and was awarded the trailer. What should I do, declaare Bankruptcy, call treasury and tell them or what. The payments are still being taken out of my disabilty check (ssdi) and the money being deducted would make it alot easier to buy medical care for my wife. What is my best course.
A:
What is happening is called a setoff. Each month the USA owes you money in the form of a monthly SS disability benefit. The Treasury Department (a part of the USA) is keeping a portion of your SS Benefits and applying it to your debt owed to the FHA (also a part of the USA).
If you call the Treasury Department, it is doubtful that anything will result from the phone call. If you file a bankruptcy under chapter 7 or chapter 13, the Treasury Department will be entitled to hold the funds from one more monthly SSDI check since SSDI benefits are paid one month after the month for which the benefits are paid. After that the automatic stay precludes further deductions from the SSDI payments and the discharge order at the end of the case will terminate your debt to the USA. However, in most instances, it will take months to get the deduction to stop and will be difficult to get the money repaid to you. This along with other issues in the filing of a bankruptcy are reasons why you need to retain the services of an experienced bankruptcy attorney to file for you. Most bankruptcy attorneys will provide you with a free initial consultation .You can search for an attorney by using the Justia "Find a Lawyer" link at the top of this page.
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