Considering Chapter 7 Bankruptcy...
I have a lot of questions so I'll probably be posting more in the near
future. Here's my situation:
Married
Two kids
Unemployed (Husband works, I'm staying home w/new baby).
Husband makes Approx. $45000/year
Mortgage - $154,000
Car loan - $21,000
Credit card debt - $50,000
We both have approx. 750 credit scores (never been late on a payment)
We are really adding debt fast as our bills outpace our income. Even if I
worked, there wouldn't be a huge difference after the added day care
payment. Is bankruptcy a good decision for me? How much does is affect?
If there is a good comprehensive website that covers this, just point me in
the right direction. Is there a lawyer that someone can recommend? I spoke
to one and he told me immediately that we could file CH 7 and wipe all of
this debt away. He didn't seem to have any doubts. When I asked if they
would convert it to CH 13, he said only about 4% of all cases are CH 13.
Any help would be great. I can't believe I am even on the web having to ask
these questions. I never thought I would be at this point.
-I have written a Bankruptcy FAQ which should answer many of your questions
about what is involved--it may be found at
www.brettweiss.com/bankruptcy/FAQ/br_faq.htm.
I strongly recommend speaking with a local bankruptcy attorney. Most offer
free initial consultations and he or she should be able to review your
specific situation and let you know what you can and can't do. If you're in
Maryland, DC or Virginia, please let me know--we may be able to help
-Required disclosure and notice: We are a federally-designated debt relief
agent, proudly helping people file for relief under the Bankruptcy Code
since 1983. Pursuant to 11 USC §§ 342 and 527, we are required to provide
certain notices, which may be found at www.brettweiss.com/faq/br_faq.htm.
-here are a couple online bankruptcy forums
http://www.bankruptcyforum.com/
http://chat-cards.com/wwwboard/bankruptcy/messages.html
-First, I am not an attorney, and am not giving legal advice. I am a
Realtor by profession.
Your situation is not at all uncommon. But you shouldn't be led to
believe that filing for bankruptcy is the best option for you. New
federal bankruptcy laws that recently went into affect make it more
difficult for individuals to erase their debt via bankruptcy.
If your husband makes 45,000 a year, you are not bankrupt.
A bankruptcy stays on your record(credit report) for ten years.It
really should be considered only as a last resort.
You should look at other ways to pay off your debt.Perhaps get a home
equity line of credit on your house and use that to pay off your credit
cards and car loan.
And at the very least, stop using the credit cards immediately. That's
the main source of your problems.
You're spending money you don't have. Make a budget and stick to it.
Keep in mind that if you do file for bankruptcy, the trustee on your
case can, I believe, require you to first sell some of your assets to
pay your debts. Like sell your car,etc.
Also, I'd be most worried about your mortgage.
If your mortgage bank finds out(and they will) that you've filed for
bankruptcy, they very well might require you to sell the house
immediately. I've seen this happen very frequently in my area.
By all means, consult a qualified attorney in your area.