Credit And Debt Counseling Pennsylvania

I got laid off back in February. At that time I had a considerable amount of credit card debt, now I'm up to over $63,000.00. I was able to make the minimum payments on all my credit cards when I was employed, but since then I have struggled. I cashed my entire 401k to pay my bills and use for my living expenses, now I have nothing. Not a dime saved up. I live off of $355.00 a week from unemployment. My lease was up on my car a month ago, and I decided to buy it from the dealership because it was the cheapest option for me, only $160 a month, but had to get my father to be the primary signer on it, if he wasn't, no bank would of approved it because of my credit. I now have moved back in with my parents because living on my own put me further in debt then I already was. Now that the money I used for rent and living expenses is available, I figured I'd settle my debt and start paying it back. Unfortunately, most settlement companies have declined me, (this is after I exhausted credit counseling and trying to negotiate with the credit card companies myself) and the companies that say it's possible inform me that my payment would be at least $800 a month, for over 3 years. This, I cannot do. My phone, 2 student loans, car, medical and auto insurance bill all value around $700 a month, leaving me able to afford at most another $700 a month, not including food and gas. I now realize that bankruptcy is my only option. My question is will my father be involved since he is the primary signer for my car, (though the title is just in my name for insurance purposes) or can I just continue to pay the monthly bill for that and my other expenses and he will be left out of it? (he also is a cosigner on one of my student loans). I keep reading stuff that in a chapter 7 some personal belongings are taken away from you, the thing is with me though, is that I don't have anything, I mean, absolutely nothing, except clothes, a laptop that i purchased a half a year ago, my phone, and this car i just bought, though i'm the cosigner on the bank loan for it. What can be taken away from me? Thank you in advance for your help, it's greatly appreciated. and any sites that can lead me in the right direction to start this off would be wonderful, thanks again.

You will need to talk to a local bankruptcy attorney and have him or her look at the vehicle loan and title documents for a real answer to your vehicle questions. I am unclear about the vehicle arrangement: whether or not the lender has a security lien on the vehicle, and if so, how that could be the case if the primary borrower (your dad) is not an owner listed on the title. If your name is on the title but there is no recorded lien, the bankruptcy court may regard it as a free and clear asset belonging solely to you (and your father's loan as an unsecured loan that is entirely his). I don't know, I'm just guessing. A bankruptcy attorney will have to take a look at all of the relevant documents in person (including any written agreement between you and your dad) to get a real handle on this and advise you what effect your bankruptcy may have.

Regarding "taking stuff" - in Ch 7 each state allows "exemptions" - property that is "exempt" from being taken from the debtor to pay creditors in Ch 7 bankruptcy. Some states are much more generous with exemptions than others. But each state's exemptions are different, so - again - you will need to consult a local bankruptcy attorney to determine which of your assets are exempt (i.e., won't be taken to repay creditors).

The vast, vast, vast majority of Ch 7 consumer bankruptcy cases are "no asset" cases, meaning that the debtor has no assets (other than those that are "exempt") for the trustee to "take" and liquidate to repay creditors.

The trustee does not rummage through your belongings looking for stuff to take away from you (a frequent but unfounded fear of many seeking to file bankruptcy). I have never heard of an instance of an ordinary consumer having to give up clothing or personal effects in a Ch 7 bankruptcy (possibly in some celebrity bankruptcies where the celeb may have 100's of 1000's of dollars worth of designer clothing that conceivably could happen, but not with ordinary non-millionaires).

Most bankruptcy attorneys offer one free or very low cost appointment to assess your situation and advise you of your options. Take advantage of that and schedule an appointment with a local bankruptcy attorney to get real answers to your questions from an experienced bankruptcy attorney licensed to practice in your state.

Do not rely on what you read about bankruptcy on the internet (or "hear" from well-meaning friends and acquaintences), as much of that information is outdated, only partially true, true only in some other state but not yours, was poorly understood by the person trying to explain it in the first place, or is just plain inaccurate. Get the real scoop from a real lawyer with a face-to-face appointment in your local area.

2009-06-27 23:55:56 by PHILLY

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