I’m a Disabled and Retired Police Officer With Debt. – James

“Dear Steve,

I am now a 52 yr. old medically retired policeman. I have been retired for now two years, I always worked secondary security jobs as most police do, so I accumulated a lots of debt, vehicles, etc. I was claimed disabled for health reasons, and I had disability insurance on my vehicle. Now since I was forced to take the medical retirement or a serious cut in pay, my lifestyle is suffering. the insurance company now is saying they will stop paying my car note even though I am rehabilitating myself, “back in school” to try to find new employment,

For my debts, should I file bankruptcy, especially because the vehicle is 15,000 in the rears because the insurance company no longer wants to pay the disability. I even got a possible repossession notice if I don’t pay the 15,000 by the end of the month. help.


past due envelope

Dear James,

The issue with the insurance company might stem from the fact the disability coverage may have exclusions to what you can and can’t do, or at least what they consider to be “disabled.”

I believe what you are saying to me is that currently there is insufficient income to make ends meet. in an effort to get back into a position to change careers you are going back to school but not working.

The only legal protection you have from creditors is the protection afforded to you under bankruptcy. A chapter 7 bankruptcy would discharge your debt but you’d also have to hand the car back to the lender. It would take about 90 days for your debt to be discharged but collection calls would stop almost immediately.

Be very careful in going back to school. Just don’t graduate with loads of student loan debt that you will pay on for many years to come. Make sure there are viable jobs available in the field you are planning to go in to. Growing student loan debt in aging Americans is becoming a bigger problem.

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Here are some links that might help you in your research about bankruptcy.

Please post your responses and follow-up messages to me on this in the comments section below.


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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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