What type of bankruptcy do I qualify for? - Bankruptcy Law Questions and Answers- LawQA.com

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What type of bankruptcy do I qualify for?

I recently found a job paying me 14k a month. I own a home with 995k first and a 250k second. The home is in foreclosure. I owe about 200k in credit cards. I am late on all of them. What can I do?

Answer By Asaph Abrams
Law Office of Asaph Abrams
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I know it's trite to say so (attorneys and their disclaimers, pah!), but there's more to your question than a general-info site can answer. You must IMMEDIATELY consult with a qualified, experienced bankruptcy attorney. As part of a comprehensive review discuss with her/him specifically: Urgency of filing. Whether your high income may preclude chapter-7 eligibility. Whether your high debt may preclude chapter 13 eligibility. Whether a short-sale is imperative. Whether $200K in credit card will trigger a red-flag with the US Trustee and others. This answer (as well as our Web site) doesn't address all facts & implications of the question; it's general info, not legal advice to be relied upon; it creates no attorney-client relationship; it may be pertinent to CA only; it's independent of other answers. Hire legal counsel before acting or refraining from bankruptcy/legal action.

Answer Applies to: California
Replied: 8/12/2011

Answer By Eric Benzer
Eric J. Benzer, Attorney at Law
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Hire an attorney today

Answer Applies to: Maryland
Replied: 8/6/2011

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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See a lawyer..... you may pass the "means test" as you just got this job. Do it ASAP. Time is NOT on your side. The mortgage payments will help and so will car payments.

Answer Applies to: California
Replied: 8/4/2011

Answer By David VanDyke
Bird & VanDyke, Inc.
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Although your income seems high, I suggest you look into a chapter 7. You may qualify if you file prior to losing the home.

Answer Applies to: California
Replied: 8/4/2011

Answer By Mark Alonso
Financial Relief Law Center
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It's highly unlikely that you would be able qualify for a ch. 7 because of your income level is far too high. However, if your income for the 6 months prior to now is lower than the median income for an individual in CA, you may have a shot at a ch. 7, since you said that you just started a working at this job. If not, you may be able to file for a ch. 13, which would be able to put your past due mortgage payments and unsecured debt into a 60 month plan to pay back what you can from your disposable income. I would definitely recommend speaking with an experienced attorney who can help sort through your specific situation and advise you accordingly.

Answer Applies to: California
Replied: 8/4/2011


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Based on your income of $14,000/month you probably don't qualify for Chapter 7 because your income is above the median for Utah. However, depending on what your average income over the past six months is, it is possible you still qualify. You should consult an attorney or fill out the Chapter 7 Means Test Form immediately to see if you qualify. If you don't qualify for Chapter 7 you might also not qualify for Chapter 13 because both your secured and unsecured debt exceed the debt limits. At this point you could file Chapter 11 or you could wait until after foreclosure to see what debts remain and whether you qualify for Chapter 13 at that time.

Answer Applies to: Utah
Replied: 8/4/2011

Answer By Bill Zurinskas
Bankruptcy Law Center
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You can file a chapter 13 bankruptcy to cure the defaults on your first and second mortgages.

Answer Applies to: Colorado
Replied: 8/4/2011

Law Office of Dennis Jay Sargent Jr, PLLC
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There are a number of different criteria to review and consider, not just income and basic debts. You also need to consider household size, location and monthly expenses. In addition, there are tax debts and other bills that need to be considered. You cannot fully appreciate what your situation is without a complete analysis of your situation. It would seem from your limited disclosure that you would probably best be served by a Chapter 13, but that cannot be fully understood without more and complete data.

Answer Applies to: North Carolina
Replied: 8/4/2011

Theodore N. Stapleton, PC
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You need to call me immediately. You may qualify for a chapter 7 but only if you pass the means test which involves an income ceiling which you exceed, but you can deduct payments on secured debts like mortgages so you need to file the BK, if you qualify, before they foreclose and you lose those expenses.

Answer Applies to: Georgia
Replied: 8/4/2011

Engberg Law Office
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You can file a Chapter 13.

Answer Applies to: South Dakota
Replied: 8/4/2011

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