A quick back-story of why I am thinking about this. Was with a woman for 4 years, and we ran up some debt, nothing the 2 of us could not handle. Well she left and I was left holding the bag. I have been trying to get through for the last year, but I am at the point where I only have about 150-200 dollars to last me for a month (I get paid once a month) after I get all my bill paid. That has to cover food/gas to get to work. At this point I am at my wits end, It will take me forever to get this stuff paid off and I donâ??t really know what to do. So I have a couple questions? 1. What will filing get me? I never thought I would be here so I never bothered to understand the laws surrounding bankruptcy. I tried to read up on it, but some of the legal mumbo jumbo I did not quite understand. so any experiences or stories of what it did for you would be appreciated. 2. what should I look for in a good lawyer, there are so many out there and I donâ??t want to get snowed. 3. I understand it is a big hit on my credit, but frankly my credit sucks at this point anyway, many 30-day lates through the last year. So for me it does not seem like a big loss at this point. Thoughts? Credit score is low 600 on average. Anything else to look out for in this process? again never even thought I would be here, but such is life, and I need to figure a way out of this because as of right now, I am running in place and will never be out. thanks in advance for any help.
bankruptcy I am a BK attorney here in CA so I can only speak to how trustees (the person assigned to your case) handle BKs. First, 85 to 90% of all BK filers do so b/c of loss of employment, divorce or illness. So you are in the vast majority of people that need BK protection. (And in my opinion, not a deadbeat!!!!!!) Second, the new laws are rather toothless, although they do have some unknowns right now so even a basic BK can go haywire. Third, 98% of all people filing for BK since the laws changed in Oct 2005 still qualify for Chapter 7!!! This is an amazing statistic b/c most people thought that the new laws for really change things. But in fact, the credit counseling agencies are LOSING money each time someone calls for the credit counseling certificate are still achieving chapter 7 protection (that is the "wipe clean" BK as opposed to Ch 13 which is a 3 to 5 year payment plan). What you need to know: Do you have any assets? Each state has different exception amounts. For example, if you are a renter and not a homeowner then in CA you can protect close to $20K of personal assets. But in FL you can only protect $1,000 of personal assets! What is your take home income (after taxes)? If you have less than $700 left over after rent, car payment, car insurance, cell phone, cable TV, and other fixed expenses then you will likely qualify for Chapter 7. Most people are allowed $250 for food per month, $75 for clothing, $75 for entertainment, and up to $400 for gas and car repairs (unless you can prove that you spend more than $400). Have you used your credit cards lately? This is very important under the new law b/c creditors can contest your BK now directly. In the past, they had more hurdles to overcome. But if you charged up $10,000 in debt in the past six months and only made $200 in payments then you could (but not guaranteed) face a challenge to your bankruptcy. Now, you will not have to pay back the full $10K, but you might have to pay back some of it. I can go on and on b/c there are about 100 questions that an attorney will ask. Most attorneys will give you a free consultation. Do it over the phone so that you do not feel pressured to sign up with the attorney b/c once you give them $$ they will not give it back. Most, like me, do most of the work upfront and then get paid over a few months. However, most attorneys will not file your case until you have paid their fee in full. This is for two reasons: (1) attorneys do not want to collect after the work is done and (2) the debt you incurred with the attorney was prior to you BK filing, so legally you do not have to pay anything after you file b/c the debt owed to the attorney was incurred before you filed BK!!! Hope that helps a little.
