Should I file for Bankruptcy?
Author: yanni raz
If you are an individual who finds yourself swimming in a large amounts of debt, you may be considering filing for Bankruptcy. If you are considering Bankruptcy, it is probably because you feel that you are spending more than you are making in income, and the creditors just wont stop harassing you. And you feel that you are head over heels in debt and have no way out. If you have been seeking out other options and just cant seem to get out of the hole, than Bankruptcy is the right option for you.
Being in debt can affect many areas of your life. Your livelihood, emotional well-being and can even affect any relationships you are in, and not in a good way. If you are in debt, you are probably under a great deal of stress, feeling like you cant even think straight enough to come up with a solution. You may even be facing depression. If Bankruptcy seems to be your only option, you can consult a Bankruptcy Professional in your area, and they can give you the right options for your situation, since everyone’s situation is different.
When filing for Bankruptcy, keep in mind there are different types of bankruptcy that can be filed, depending on your individual situation. Your bankruptcy attorney will guide you in the right direction. Always remember that filing for bankruptcy is nothing to be ashamed of. In fact, it could really benefit your future in the long run. Consulting your attorney in this matter could be the beginning of the rest of your financial future.
Not sure if you are qualified to file for Bankruptcy? Since there a different types of bankruptcy to file, Chapter 7 and Chapter 13 being the most common. If you are eligible to file for Chapter 7, you must not show another filing in the previous 6+ years as a resident in the United States. You must also prove that after paying all expenses in a given month, that you cannot afford to repay debt. Also be sure that you have never filed for Chapter 7 in the last 6 months or so. With filing Chapter 7, you may end up losing property (other than the home) that is very valuable to you in order to satisfy the debt that you owe. When filing, you will have to fill out a lot of paperwork, attend court and then wait 70-75 days for all debts to be discharged by the court.
Many people chose not to risk the chance of losing their valuable property, will file for Chapter 13 instead. This filing does not discharge debts, but allows the person holding the debt to repay it over a 5 year period. The individual will have to review all expenses and come up with a payment arrangement and amount of payment for approval by the court. You must not have move than 0,000 in debt to be able to file for Chapter 13, in secured debt that is. Unsecured debt should be 0,000 or lower. Certain debts will not be excused under Chapter 13, student loans for example. Filing a petition with the court will begin the Chapter 13 process. After submitting the petition you have 15 days to submit your payment schedule, a court trustee is the appointed to the case, and will act as a middle man between the creditors and the person making repayments. Within 30-50 days the creditors will hold a meeting to discuss the repayment plan. The Judge then OK’s it. At this point it is completely up the person holding the debt to make payments on time.
Speak with your Bankruptcy attorney today, to see which plan is best for your situation.
http://www.yanniraz.com
Article Source: http://www.articlesbase.com/real-estate-articles/should-i-file-for-bankruptcy-1335001.html
About the Author
Yanni Raz is a mentor for many in the Real Estate Mortgage industry, Yanni Raz is been tutoring many homeowners in California and help some also to save their homes. http://www.homesinsale.com
Should I file for bankruptcy?
I just lost both of my cars that I was paying a total of $841/mo. on. My wife is going to be quitting her job because of childcare issues, tension levels in the family, and all the stress that’s been building up from playing “tagteam” with watching the kids over the past 2 months. I get at least 15 calls a day from credit card companies asking where their money is. I incorrectly filed my taxes in 2005 (filed a Schedule K-1 online with Liberty Tax, and apparently I was missing a Schedule E form), so now I have a tax debt of almost $10,000. I will be making just enough money to pay my mortgage, utilities, food, and gas for commuting to and from work (70 miles a day). I am behind on every credit card I have, a Home Depot Consumer Loan, student loans, medical bills, everything. I also live in a suburb of Austin, TX in case anyone was wondering. I don’t know the bankruptcy laws well enough in Texas, and I need major help. Should we file for bakruptcy, and if should which kind of bankruptcy?
I believe most people are thinking that I’m a big spender, but I’m actually more of a tightwad. I don’t buy latte’s at all or have any weekly or daily habits with spending money on food, my wife cannot work due to the fact that everything she makes goes towards paying for childcare, and even still we’re short. I am a general manager of a restaurant, on salary, and I cannot get another job because I have to have open availability. I lived on credit cards and did things like paying my water and electric bills with them, not going out and buying a big screen tv or anything of that sort. Like I said,I am relatively frugal, it’s just childcare mostly that screwed me and now I’m up to my ears in debt because of the decision for my wife to stay at work.
Bankruptcy or debt consolidation?
I was divorced last fall, in Texas, where I still reside. My attorney refused to ask my x for disclosure, so I did not know that my x had $15,000 in credit card debt. The divorce papers say she’s liable for debts she incurred from the day I walked out on her, and for all debts that are in her name, which these 3 revolving accounts are. But, she hasn’t paid and yesterday, after getting turned down for credit, I checked my credit online and found out that two of her credit card companies have put charge-offs on my credit, a third one is about to, because she’s 190 days past due on it, and she never paid the phone bill so Embarq has put a charge-off on my credit, too, for $150, which is the least of my worries, but my credit score is barely over 400 now. Everything else on my credit shows “paid on time/as agreed”. I’ve never made a late payment on anything my whole life.
I’m considering bankruptcy, but I own two homes (one is a rent house, both are mobile homes). The industry I work in is winding down and I had planned on moving into the landlord business. I’d planned to purchase an RV park, not only as a new career, but as my only retirement income, as well. I’ll be 50 years old in a few months. I don’t have years left over to build more credit.
Suing my x for whatever she owes me will not do any good, because she refuses to work, doesn’t have a job skill and will surely never pay me once I win in court.
My income is excellent, and I may make too much for Chapter 7. Also, one of my homes is in a mobile home park inside a city limits. My main home sits on 2 acres in a subdivision, outside of city limits. I’m concerned that if I file bankruptcy, I won’t be able to keep both houses. I also have two cars. One is a junker that my X trashed and gave back to me while the divorce was still pending. I owe less than $2,000 on it. The other car is very nice, only 2 years old, and I owe a lot on it. I’m paying on all this, on time. My only concern is losing my homes and the good car.
Personally, I have no other bills besides the two house payments and the two car payments & their insurance. I have no revolving accounts.
Given my plans for retirement and my unsteady job security right now, which do you think I should do, file or consolidate just her bad bills and pay them off over time?
Can creditors put lien on home or garnish wages in Hawaii?
I’m from Texas where credit card companies (UNSECURED DEBT) can NOT put a lien on your home or sieze assets (unless purchased with said credit) so they don’t even bother getting a judgement against you. However, I know in NY credit card companies can actually put a lien on your home so they will definitely get a judgement against you.
We got way off track and have credit card bills that are way behind. Almost all are in collections. We believe we can get back on track, and don’t want to file bankruptcy yet. We’re moving to Hawaii for a job, but I’m wondering if anyone has any info or can help me find some online somewhere (I’m lost) about the creditors’ rights.
I know someone will tell me to contact an attorney in Hawaii, but it would be great if someone knew.
Thanks
Greg…Chris C’s post was a help….adding to that…first things first….the credit card debt…if it is not in your name, you need to find out if she put you on as an authorized user, if so, you are not responsible, if you signed on the dotted line to get the credit cards, yes you are responsible. If you did not sign, you need to contact each credit bureau and have them remove the incorrect information as in fact they are hurting your credit. As posted and as I mainly advise, bankruptcy should be your absolute LAST resort. If you make over the median income to qualify for a chapter 7, the only alternative is a chapter 13, which takes an allotted amount of money determined by the courts to pay for the debts. They would most likely have you sell the other home to pay for some debts, the chapter 13 plan runs either 3 or 5 years, depending on income. The payments are sent to the US Trustee of the bankruptcy court who then distributes the monies to the secured debts first, un secured last. While in a plan like this, anything financed you have to have the trustee approve. I’m not a fan of the chapter 13 as it leaves you with very little money to survive on. Debt consolidation, well…scam if you ask me..I’m not a fan of that either. As far as the vehicles, sell the beater and get the money to pay the debt if you are responsible for them. The trustees of the courts could make you sell the mobile home and pay off debts with the money. Best advise, you could contact a bankruptcy attorney to find out what your options are, most will see you free the first consult. You can check in http://www.cccs.org..which is a consumer credit counseling that I have heard is excellent. What you need to keep in mind…A bankruptcy stays on your credit report for 10 years, the debts for 7…If the debts are not paid, they can garnish wages and or bank accounts up to 100%…sounds like you have done well, and know how to pay your bills and are just overwhelmed with knowing she has left you with this debt. Here is another website that I found excellent information for credit, debts and bankruptcy issues… http://www.bcsalliance.com a good friend led me to that link and it provides excellent information. Good Luck!!
Yes, but they’d have to take you to court and win a judgement first.
Hawaii Wage Garnishment laws:
Exemptions: 95% of first $100, 90% of second $100, 80% of net wages in excess of $200 per month or federal exemptions, whichever is greater
http://www.bcsalliance.com/debt1_hawaii.html