Bankruptcy possible?

Question

We are a family of 3, annual income about $21k. We have about $5k in credit cards, $7k in medical bills, $14k in student loans, and $2k in miscellanous debts (utilities, etc.) As well as about $15k in personal debts that we intend to repay. What, if anything, would we be able to bankrupt? We live in Michigan, btw.

Answer 1

I have posted a link that has lots of bankruptcy information, it even has a test you can take to see if you qualify and for what chapter.



http://www.bcsalliance.com/index.html

Answer 2

You can find the best solution for you at: SAVE-FINDER.NET-

RE Bankruptcy possible?

We are a family of 3, annual income about $21k. We have about $5k in credit cards, $7k in medical bills, $14k in student loans, and $2k in miscellanous debts (utilities, etc.) As well as about $15k in personal debts that we intend to repay. What, if anything, would we be able to bankrupt? We live in Michigan, btw.

Answer 3

The Student loans are not dischargeable, but everything, including the personal debts are discharged via a bankruptcy. You don't get to leave those personal debts out of the bankruptcy, but after the discharge you can opt to pay them. Do not pay toward any of these debts (aside for secure debts and student loans) before filing. Whoever said the locale doesn't matter is wrong, while bankruptcy is federal, every district has local rules that also need to be followed and the state's exemption laws also differ from state to state, but that probably won't impact your ability to file unless you have a lot of assets.

Answer 4

First thing, student loans are not discharged by bankruptcy. so that leaves roughly 29K in debts. I would go online to
www.uscourts.gov/bankruptcycourts.html and check what they have for the Michigan bankruptcy requirements. You can file a Chapter 13, which will set up a repayment plan for the creditors. I also would pull your credit reports and make sure you have those handy when you contact a lawyer. If you have a lot of debt or a lot of creditors a lawyer would be the best person to handle it for you.
I was able to do mine on my own, but my husband is using a lawyer due to his 2 ex wives sticking him with a lot of debts.
Just remember that bankruptcy is on the credit report for 7-10 years.
Good luck

Answer 5

The first thing you should do before you consider bankruptcy is to consult a budget/credit counselor. You can find one locally in your phone book, and their consultations are free. They will help you draw up a monthly income vs. expense plan, and work with your creditors to reduce your payments to a more manageable level. Bankruptcy should be your last option, because even if it's granted, it will stay on your record for 10 years and prevent you from buying anything else major...especially another car or a house. And one of the stipulations of bankruptcy court would be to scrutinize your budget very closely anyway. If bankruptcy is really your last option, the courts will be much more understanding if you can present written proof to show them that you have already taken every possible other option (budget counselor and debt payment records) and that it is indeed your last one.

Answer 6

A Chap. 7 is still completely possible for your situation, it is just that it is difficult to do without an attorney anymore, so plan on coming up with about $1300-$1800 just to make the filing. If you can come up with that kind of money easily, you probably have other options. Every last penny you make and spend is going to be scrutinized and observed by the courts, and the process itself is going to pressure you to feel like both a victim and a cheat all at the same time.

In my opinion, bankruptcy is usually only worth it if the bankruptcy itself is going to save you from going homeless, losing your means of earning a living, or to stop debilitating garnishments....
Too many people look to bankruptcy for a fresh start so they can get back to using credit again, bad mistake; wean yourself from having to use credit at all.
There are alternatives to bankruptcy: working out payment plans, doing debt settlements, or just demonstrating to your creditors how broke you really are. Most creditors know not to spend good money after bad chasing down a bad loan from someone who isn't worth their time and expense. But sometimes, there are idiotic creditors that stop at nothing to squeeze it out of you, I know, I used to work for one (it eventually went bankrupt).

You've got to decide if it is worth it and know that there are no easy routes.

Answer 7

Here is the skinny on the new regulations regarding bankruptcy:

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within 180 days before they file. They also must complete a debtor education course to have their debts discharged.
The Department of Justice’s U.S. Trustee Program approves organizations to provide the mandatory credit counseling and debtor education. Only the counselors and educators that appear on the U.S. Trustee Program’s lists can advertise that they are, indeed, approved to provide the required counseling and debtor education. By law, the U.S. Trustee Program does not operate in Alabama and North Carolina; in these states, court officials called Bankruptcy Administrators approve pre-bankruptcy credit counseling organizations and pre-discharge debtor education course providers.
Counseling and Education Requirements
As a rule, pre-bankruptcy credit counseling and pre-discharge debtor education may not be provided at the same time. Credit counseling must take place before you file for bankruptcy; debtor education must take place after you file.

The counseling organization is required to provide the counseling free of charge for those consumers who cannot afford to pay. If you cannot afford to pay a fee for credit counseling, you should request a fee waiver from the counseling organization before the session begins. Otherwise, you may be charged a fee for the counseling, which will generally be about $50, depending on where you live, the types of services you receive, and other factors. The counseling organization is required to discuss any fees with you before starting the counseling session.

I have enclosed a link to locate the above mentioned agencies as approved by the FTC

Hope this helps.

Answer 8

Not the student loans. Student loans are never discharged in bankruptcy.

Credit card bills and medical bills can be discharged through bankruptcy, if you qualify for the type of bankruptcy that allows discharging of debts (I do not know if you do).

Answer 9

1) bankruptcy is a federal case, so doesn't matter where you live in the US 2) a chapter 7 is virtually impossible to get these days 3) most anything except child support and taxes can go into a chapter 13. first thing you should do is consult an attorney as the consultations are free. most will tell you if it's worth your while...

Answer 10

Just remember that bankruptcy laws aren't what they used to be. Check with a lawyer (in Michigan, of course).