I made some bad credit card decisions when I was younger and I've been paying for it for quite some time now. I'm going to college full time, about to graduate, and working 20-30 hours/week. The money I earn is barley enough to cover my monthly payments. The rate I'm going with interest and all, it will take me a while to pay this off. What is the best way to go about filing bankruptcy and how much does it cost? Will all my debt be wiped out completely?
2007-12-03 13:25:03 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
get yourself a bankruptcy lawyer!!!
2007-12-07 06:16:01 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You need to contact a bankruptcy attorney. It is tough to say what the going rate is as that is locale specific, but the court costs for a chapter 7 is $299. While they might take a payment plan (and $1000 is probably the average chapter 7 fee) you have to pay your fee in full before they file as their fee is dischargeable in the bankruptcy so if they know what they are doing they will not agree to accept payment after the filing.
You need to take credit counselling (which is about an hour or so online or on the phone) within 180 days before filing. You have to give your attorney, all your debts, assets (lists of), copies of your 2005 and 2006 tax returns, proof of all income in the past 6 months from ALL sources. All debt except, tax student loans and child support (and other related debts) wil be discharged, but if you want to keep your car you have to pay the loan on your car (same goes for any other loan that has collateral).
An attorney can answer all your questions.
2007-12-05 16:26:42 · answer #2 · answered by Lesley 5 · 1⤊ 0⤋
Let me preface by saying that it is strongly encouraged that you do whatever is possible to try to avoid it, but if you see no way out:
Simply contact an attorney who specializes in bankruptcy cases. Your yellow pages are full of them. Set up an appointment. An attorney will tell you how it works. They will take care of most of the work for you for a fee. The fee will be payable through monthly payments. Most of what you'll have to do is simply provide a list of your creditors, and a list of your assets. The paralegal will tell you when they'll need the info.
The great thing is, once you enlist the services of an attorney, you can direct all creditors' calls to your attorney's office, getting a monkey off your back. The overall fee is somewhat steep, but it's worth it if it means retrieving your sanity and getting a fresh start. The monthly payments should be affordable, since you'll stop paying creditors. I know an attorney who charges $1200 in all, but accepts a monthly payment of $200. Court costs are an additional $200. But that's just one example. The fees vary across attorneys and regions.
You'll eventually go to bankruptcy court, most likely just once, for a hearing. If your attorney has his or her stuff together, you will be granted a final decree and discharge after a short interview and sworn statements.
Some people might try to encourage you to file without an attorney, but I don't think that's a good idea. The process is complicated and tedious enough to leave the work to folks who know what they're doing.
2007-12-03 13:31:54 · answer #3 · answered by SoulDawg 4 UGA 6 · 0⤊ 0⤋
You can contact a trustee (usually an accountant) that handles bankruptcy.
They gather all the creditors together to get a settlement, if you have no assets then they may ask you to pay their fees (shop around as the trustees have different fees).
Once your bankruptcy is discharged all debts declared on bankrupcy is wiped clean (except student debts and taxes).
Keep in mind that this will remain in your bureaul for 7 yearrs.
2007-12-03 13:56:33 · answer #4 · answered by Jake 3 · 0⤊ 1⤋