We are in debt 30,000K and have an income of 36,000K. We pay $1400 in rent and $950 in revolving credit a month without gas and food and utilities. We are not making it. We filed bankruptcy 8 years ago when my hubby lost his job right after me losing mine. With all the law changes, are we even elgible to file chap 7 again? I hear to stay away from Credit Counseling....and I cant find a debt consolidation loan that we can get without collateral. Does anyone know a way to help us? If something doesnt happen soon we are going to lose everything anyway. HELP!!!!
2007-02-01 17:09:21 · 4 answers · asked by ShannonsJoy 2 in Business & Finance ➔ Personal Finance
Yes, I believe that you can. I have no idea of where you live, but as a reference contact the law offices of John T. Orcutt in Raleigh, NC. His office is on Mourning Dove Rd. If he can't help you, then he might be able to refer you to someone who can. The credit councilors might sound good, but they are not because they are going to add their fees to to what you owe. They are out to make money, and your problem they really could not care about. I can tell you now, it is not going to be easy. You will have credit counseling that you have to go through. Your money and all of your assets are going to be looked at very closely. That said, if you can show that by the time all is said and done that you are essentially broke at the end of the month, then yes, you could do a chapter 7. The time limit is 7 years. I would advise you to go very lean on expenditures, and operate on cash and carry. Credit should be viewed as an evil best avoided.
Once you are out from under all of this, I would recommend a way to build up your ability to be more solvent. Get the book "Tax Liens Direct", read it, and follow the instructions there in. The regular way of getting real estate is not the only legal way of getting real estate. First though, get out from under that rock of debt.
2007-02-01 17:25:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Credit Counseling won't help you, and neither will a chapter 13. You have too high of a rent payment. Based on your income of $36k, that would give you roughly $2,300 in take home. Your rent is over 60% of your take home pay. You are not going to make it with that percentage. You have two choices. One, get a second, third, fourth job and get your income up, or second choice, move. Even if you do file bankruptcy or Credit Counseling, you are not addressing the problem, you are only treating the symptom. As a CPA, I would advise one of my clients to move, and take on another job temporarily while working through the credit mess. I am not proposing an easy fix, and know how difficult it can be, but you need to treat the problem (Rent and overspending) not the symptom (can't pay your bills this month). Otherwise you are going to end up right back here a few years after bankruptcy. If part of the 950 is a car payment, then you need to sell your car too, and get a cheap $1,000 estate sale car with low mileage. You can work through this, but it is going to take a lot of sacrifice. Good luck to you.
2007-02-02 01:15:00 · answer #2 · answered by Lip Service 2 · 0⤊ 0⤋
I practice bankruptcy law in California. You sound like a good candidate for a Chapter 7, but you really need to see a local bankruptcy attorney for more details. And yes, I would stay away credit counseling...it is pretty much worthless for someone in your situation.
2007-02-03 16:23:29 · answer #3 · answered by Carl 7 · 0⤊ 0⤋
infact credit counciling can really help you
2007-02-02 00:06:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋