2004 hearing bankruptcy
How to deal with debt? More info on filing for bankruptcy? What can creditors do 2 help with interest on debt?
I would like more info on how filing for bankruptcy is done? My husband an I have alot of debt. I hurt my back in 2004. We paid for medical bills using our credit cards thinking I would be able to get back to work in no time. With him the only one working at the time we kept using the credit cards to pay for my meds and now we are at our limit and he has been let go from his job he had for over 10 years. This isn’t the first time they let him go but this time its for good. While we are waiting to hear about unemployment and if it will go threw we have little cash and lots of unpaid bills. We don’t know where to begin an losing hope fast. Has anyone been threw this and found a way to pay off debt or lower the interest rates? We are wanting more into on filing for bankruptcy and if we don’t own anything “put up our car to pay off some of the medical bills” how does filing for bankruptcy work? Do you have to pay the money back after you file? After 7yrs will we ever have a good credit?
First, you have to take a financial management class approved by the Trustee before you can file for bankruptcy….don’t get a lawyer yet…..second, you may not qualify for Chap7 if your husband’s income was above the state median…They look at the last 6 mos of income…so if he was just laid off….that won’t count.
Finally, if you are currently paying your bills (minimums) on time and you own your home…..maybe a refi w/ cash out or equity line of credit is the way to go…..
IF you get into Chap7 – your case will be reviewed and if there are no objections your debts are DISCHARGED (dismiss is bad).
If you go into Chap13 – a plan is proposed based on your disposable income to make monthly payments to the trustee for 5 years……after that the remaining balances are DISCHARGED.
It is imperative that you get all three credit reports because IF you do file, you must list every creditor you can think of……If you leave one out – IT IS NOT discharged….so if you borrowed money from Aunt Edna and didn’t pay it back 10 years ago,,,,list her!!
You can file Pro Se – the paperwork is intimidating, but straightforward, and you should be able to get the docs from the Bankruptcy Court in your district or buy them at Office Depot.
The forms are the same – it’s the federal vs. state rules you will need to read about for your state…..
