Which chapter is best to do and about how much does it cost to do it? My credit is beyond fixable and I want to get rid of these bills that leave me with nothing every week, when I even have enough to pay them. Please help...if anyone knows anything about how to do this or if anyone has done it, can you help me? Thanks!
2006-07-01 05:52:44 · 8 answers · asked by sweet_and_fabulous_female 3 in Business & Finance ➔ Credit
You CAN do it yourself, but I would not recommend it. Calling the Trustee's office before you file is pointless, the information on median income is on the Dept of Justice website, along with the forms you need and information on how to fill them out.
http://www.usdoj.gov/ust/
The new law is much more complex with far too many pitfalls if you get something wrong on your forms. You really should consult with a bankruptcy attorney in your area and find out what your options are. If you income is below the state median, you may qualify for a Ch 7. If your income is below the median but you still wind up with enough disposable income to pay at least $100/mo to your creditors, you'll wind up in Ch 13 - which is why you need a lawyer's help. Do NOT attempt to do it w/o at least seeing one. Since you don't even know the first thing about bankruptcy, you really DO need a lawyer.
Before you are even allowed to file you must go for the MANDATORY credit counseling session. If you do not do this, you will not be allowed to file. You have 6 months to complete the session before you file at all.
Call around, go for at LEAST 2-3 consultations, most do the 1st one for free.
As for asset siezures, that is not likely to happen. The EXEMPTIONS available for your state will likely protect every single thing you have from any seizure by the Trustee. Only NON_EXEMPT assets are vulnerable to siezure by the Trustee.
Most people lose NOTHING.
2006-07-01 12:10:32 · answer #1 · answered by SciFiDiva 2 · 1⤊ 1⤋
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RE How exactly do you file bankruptcy?
Which chapter is best to do and about how much does it cost to do it? My credit is beyond fixable and I want to get rid of these bills that leave me with nothing every week, when I even have enough to pay them. Please help...if anyone knows anything about how to do this or if anyone has done it, can you help me? Thanks!
2014-10-09 19:04:42 · answer #2 · answered by ? 1 · 0⤊ 0⤋
You must have an attorney to do so.
Chapter 13 is reorginization of debts, whereby your debts are consolidated into one monthly payment that you can afford. This preserves you credit.
Chaper 7 is complete dissolution of your debts. If you own any assets that are part of that debt, such as a car, boat, furniture, or any excess cash (subject to intrepretation), the court will sieze these to satisfy part of your debts.
An attorney can advise you which way to go. You may find that you can repay a smaller installment and still survive.
I'm not an attorney, just have some limited knowledge, from business experience.
I believ there is also Chapter 11. Sorry, no idea how that functions.
2006-07-01 13:22:28 · answer #3 · answered by ed 7 · 0⤊ 0⤋
You do NOT need a lawyer....Call the Trustee's office in your area, find out the median income for your state.....If your income is below that figure, you can file Chap7....If not, go into a Chap13...
Next, you must complete a financial education class PRIOR to filing any banktrupcy. Get a list of approved classes from the Trustee.....TAKE the class now to get it out of the way - even if you choose not to file after all.
You can file PRO SE - get all the documents from the court or Office Depot - the documents are standard, it's the exemptions that may vary - very easy to research....The documents may be intimidating, but they are very straightforward.....
Get all three of your credit reports and list all your creditors/collection agencies.....match up the collection agency w/ the original creditor. If you have some that are not listed - list them.......
If you borrowed $100 from Aunt Edna and will not pay her back, list her as a creditor....If you don't list it - it won't get discharged....(discharge is good/dismiss is bad).
Go to Office Depot TODAY and get the paperwork - or you can buy them online.....
Message me and I'll answer any questions/confusion....Don't delay, there is a way out.
2006-07-01 13:06:50 · answer #4 · answered by Paula M 5 · 0⤊ 0⤋
I think it is best to avoid bankruptcy if possible. Most people who file bankruptcy do not need to. Most who take this route are taking the path of least resistance and never learn the lessons and habits needed for good money management. Many people who file bankruptcy end up doing it more than once. I suggest Dave Ramsey's Baby Steps. It is hard to do but most things that are worth while are. Here is a link to the concept.
http://www.mdmproofing.com/iym/babysteps.shtml
2006-07-01 13:03:02 · answer #5 · answered by kenkarch 1 · 0⤊ 0⤋
You have to get a lawyer first. They will tell you everything else. Good luck. Bankruptcy laws have changed a lot.
2006-07-01 12:58:23 · answer #6 · answered by misskitty 4 · 0⤊ 0⤋
the best thing for you to do is go to a lawyer who handles bankruptcy cases laws have change for these cases.lawyers who handles bankruptcy cases can handle your type of situation.
2006-07-01 13:04:48 · answer #7 · answered by Madeline W 1 · 0⤊ 0⤋
call a bankrupcy lawyer. initial consultation is usually free
2006-07-01 12:57:10 · answer #8 · answered by rosesky 3 · 0⤊ 0⤋