How should I know if its a good time to file for bankruptcy?
Starting to fall farther and father into debt. I know nothing about bankruptcy?
Posted January 4th, 2010 in Bankruptcy Q And A. Tagged: bankruptcy.
Starting to fall farther and father into debt. I know nothing about bankruptcy?
Technorati Tags: bankruptcy
How to go bankrupt: no bull advice on when and how to file, online bankruptcies, alternatives, tips, do-it-yourself with a low-cost attorney review.
In California, you can make up to 50-k and get chapter 7, and have 75-k in property…with some exceptions…call a bK attorney in the phone book…call lots of them…they give free advice on the phone..its better than anything you will find here..
January 4th, 2010 at 11:49 pmwhen you have no money, if you are self employd you should of got out a long time ago
January 4th, 2010 at 11:49 pmI used to work for attorneys and for a few years in a bankruptcy department plus from my own experience so I can provide you that info. If you owe over $65,000 and that is mostly for medical bills then you can (if you find it won’t hurt your career and future buying power) file for bankruptcy. If you don’t file then all people could do is continue to harrass you and probably garnish your wages after they pull you into court to request that you make a repayment schedule. Going into bankruptcy can ruin your career, your purchasing a house, car, boat, etc. and although they say it’s just for 10 years, actually it is longer.
People used to go bankrupt because thru a Chapter 7 all the bills would get wiped out but the law changed a few years ago and the judges now refer Chapter 7’s to a Chapter 13 for repayment if you are earning and eventually in the future you can pay your bills off. The other new thing is that if you file for Chapter 13 (repayment in part, mostly with just the interest lopped off but trustees monthly fees, plus your filing costs and fees) but they now require that within 6 months of filing a Chapter 13 that you try to do a repayment plan thru the federal group Consumer Credit Counseling, so if you are behind by a few months then go to CCC and see what they can do for you.
if a person is falling farther and farther into debt one must get rid of the cable, the cellphone, the fast computer service (use the library instead or get dialup so you can continue to search for work), if you have an expensive car trade it in for a beater, get food stamps, get unemployment comp if you’re out of work, cut your expenses to the bone (you can eat on $1-2 a day), change your own oil, walk instead of drive where you can, sell what stuff you don’t need or can no longer use and travel light. If you have to and can then move in with parents or family (perhaps the cost of renting would be better than what you’re doing rpesently). Then see if you can get a second job (a part-time weekender). Work under the table; work online. Cancel magazines, stop smoking and drinking, no bars, no time wasters either.
January 4th, 2010 at 11:49 pmThere is NEVER a ‘good’ time to file for bankruptcy. If you are falling FURTHER in debt, that means you are STILL spending more than your income. As long as that is true, bankruptcy won’t help. It only addresses the SYMPTOM. Your PROBLEM is spending more than your income.
January 4th, 2010 at 11:49 pmThis answer applies to any sort of "when should I…" question.
You move forward when the pain of staying still is greater than the pain of moving.
So, if you’re being sued, garnished, harrassed, etc.
January 4th, 2010 at 11:49 pmAnd filing bankruptcy will end that cycle for ever and ever, amen.
Then file.
But, if this bankruptcy is just a way to hold creditors at bay for 2 years until the debt is overwhelming again. Don’t.