Bankrupcy Credit Card Debt

my total loan amount is $36000 after selling the car probably they'll put $15000 on my credit and i've $15000 in credit card. due to unemployed from last 2 years i've no choice but to file bk. will they go for wage garnish?
please advice

If you file Chapter 7 bankruptcy it is supposed to clear all debts out except student loans and IRS debts, but if you have a fairly high income, they may not approve Chapter 7 for you once you've reached the hearing as the laws have changed and they may see you have some ability to pay at least a portion. Since you are unemployed I don't see how they could collect anything from you, so Chapter 7 sounds right. They don't garnish after bankruptcy unless you've made a payment agreement with the court and you ignore it. Most agreements like that are made with Chapter 11 or 13 filings. Most that is, not all. Best to take care of filing this while unemployed as it has the best chance of clearing out the debt and allowing you to start over later.

2008-05-31 21:54:06 by lucky R

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My husband of 15 years walked out on me and my 3 kids 10 day before Christmas of 2006. He was our soul provider. I make only 18,000 a year. I had a 2000 a month mortgage and bills. He paid for a while and stopped about 1 year ago. He has since lost his job and pays nothing to us. I have a child support order but he has no job to pay me. So I have since used my credit to take care of myself and my kids. I have been looking for other jobs but it is hard because I can not afford babysitting. I work in a school during the day and they are at school. I am now in 40000 in credit card debt. Ya I know, I tried to save my home and it didnt work. I have a BS degree but I have no bites on a job. I just would like some insite on the bankrupcy process.
how much does a bankrupcy lawyer typically cost? I live in California. I already get state help for food stamps and have applied for day care help. Still no answer. I know that I dont want to always be this way. I am just scarred of the process. I had high 700 credit score for years and hardly used my credit cards till now. I went for an 80000 a year come that included his and mine and now I just have mine and he convinently lost his job.I just want to know that I will be ok and I can reestablish credit later. That is for a house, car etc. I hate credit cards. But they did help me when I needed it. Unfortunatly I thought things would of been financially better by now.

Yes, you should find a good BR Attorney.
He can advise you.
Collect statements from all your debts, medical, payday loans, signature loans, home, cars etc.
all bank statements and divorce decree, child support order and pay
stubs etc.
You must report ALL DEBT and ALL ASSETS.
Then it will cost 200-300 to file, once you file you can notify all your creditors and they will all get a notice from the court, once you tell them you have filed and give them your file number you will not have to pay any of those debts.
If your X is a co-signer on those debts, he doesn't file, they will go after him for payment (kind of a nice payback...lol) anyway.
you can often keep a car and home if you own and can afford them without the other debt.
You can probably get help with Daycare from the state if you apply.
You can send your kids to even Kindercare with a voucher from the state. You just need to look into it, based on your income.
You could also get a job at a Daycare, often they let your kids attend free or for less.
anyhow, I would do the BR , we did it in 2002 and I have not had any trouble with credit since, for a short time I paid Higher interest on loans for a couple years and after that, since I proved myself, NO problems,
I have good credit now. I have bought cars and everything through my credit union.
We kept house and cars, too,....
My lawyer allowed me to make payments to him after we filed, I didn't have any other debt so I made him $50.00 a month until paid for for his fees.

2008-08-21 10:44:33 by CJ

My friend who is 25 yeras old is in credit card debt. He owes $15,000 on one card and $9,000 on another card. He thinks it may take hime years to pay back the debts. He still uses these credit cards.


One is a Citicard and the other is a Bank of America Visa.


Should he declare bankrupcy? He also lives with his parents.


I'm a 27 year old male who has one credit card that I rarley use. I pay cash for 90% of my pruchases.

We both live in the Los Angeles,Ca area where housing is very high.


My friend makes $10 per hour and works 25 hours per week.

He also has a car loan that he can't pay back.

He should NOT declare bankruptcy.

He lives with his parents. I assume that means he has not rent, utilities, food expenses to pay. Most likely he pays for his car, cell phone and spending money.

He can and should pay this debt off.

The first thing to do is a little "plastic surgery". IE cut the cards up so you stop using them.

The go purchase a copy of Dave Ramsey's book "The Total Money Make Over".

Dave Ramsey is a financial counselor (like Suze Orman). He has a radio program that comes on The christian talk station. It won't cost your friend a thing to tune in and catch a few episodes.

If he wants to- he can see if one of the local church's is doing Dave 15 week course "Financial Peace University".

Your friend can clean up the mess he made. It will take work and discipline but it can be done. And it can be done in less than 9 years. He needs to have a plan on how to do it.

That's where Dave Ramsey comes in. Dave teaches the Baby Steps.

Step 1: save up a 1000 emergency fund.
Step 2: the debt snow ball. The debt snow ball is the strategy for paying off debts.

But- your friend will have to stop spending more than he makes (which is how he got himself into this). He will need to cut his expenses where ever he can and "live like no one else". Dave Rameys strategy works.

www.daveramsey.com

Your friend only works 25 hours a week? Why not 40+?

When you try to lose weight you have to cut calories and increase exerciese. When you have to lose debt - you cut expenses and increase earnings. Tell your friend to find another job. He should be working a minimum of 40 hours per week.

Declaring bankruptcy won't do a da*m thing for your friend if he does not learn to change his habits. All it will do is ruin his credit. Then he'll go right back to his old ways....and end up on the same hole he's in now.....only now he'll have one bankruptcy on his record and with the change in bankruptcy laws...may not be able to file a 2nd bankruptcy.

2008-11-22 15:46:21 by unknown62008

I have tried an credit card and without luck..also I do not want one. Is there another way to get my credit report in good standing without buying into an credit card or new car?

Talk with your local credit union and open an account. Deposit money in that account and ask to take out a loan using that money as collateral. The credit union will be safe (cause they are holding your deposit) and you can start to rebuild your credit. Yes it will cost you some interest but, it is cheaper than getting credit cards at 21%.

2006-06-13 06:27:31 by kate13

You could "get rid" of the debt if you are qualified to file a chapter 7 case - meaning you have less than the median income in your state (for example $41000 in Illinois for an individual or $72,000 for a family of 4) and if you haven't filed in the past 8 years. Otherwise, if you have enough disposable income to pay at least $10,000 over 5 years or $6,000 over 5 years (if that results in payment of 25% of your debt), you would have to file a chapter 13 case and make monthly payments to a chapter 13 trustee for 5 years.

Say thank you to your nice Congressmen and to your friendly credit card companies for the so-called "Bankruptcy Abuse Prevention Consumer Protection Act".

2006-02-25 08:10:39 by bubbabud416