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How much do you think qualifies for bankruptcy? We just don't have anyway of paying the amount we owe were broke and almost ready to lose our home. I'm thinking of filing chapter 13 but not sure whats involved.
If its more than 12k would you file? I already know its bad to file bankruptcy and that it destroys your credit but mine is already crappy because I have so many judgements.

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Asked by Anonymous at 12:55 PM on Aug. 24, 2010 in Money & Work

Answers (6)
  • I am not to sure about new bankruptcy laws although I think if you need help and that is the best way then you should look into it. I was wondering have you tried calling you credit card companies, if that is the kind of debt you have, to see if they will work with you. I know many people who have called them and worked directly with the companies or a debt management company.

    Just thinking that there might be other options. Good Luck!

    Answer by cornflakegirl3 at 1:01 PM on Aug. 24, 2010

  • I know that congress has passed something that allows you to work with your mortgage company on your loan. I don't know what it is called. But, I know someone who is working with their mortgage company. And, their house payment is being lowered to equal 1/3 of their income. Please call your mortgage company. Ask them what type of programs they have that can help. They really don't want the house back in this economy. So, many are more than willing to work things out with their borrowers.

    Answer by specialwingz at 1:12 PM on Aug. 24, 2010

  • I have to disagree with special.. Yes the government does have a program but very few get a permanent modification. You get in the loop of filling paper work after work only to hear they never received it or it was the wrong papers.. You will get a temp modification for 3 months then they reevaluate your application. It is a never ending cycle. In the mean time, it kills your credit even further, they tack on fines and fees etc.. Once it is all said and done, you now owe more than you can pay and they want to foreclose. Very few get the modification because of terms like" not a permanent situation, too little income, too much income or you didn't send back the papers" no matter if your did it through fax,fed x or certified mail.. Been there, done that save yourself the hassle and file chapter 13. If you don't believe me google class action lawsuits against your company and see what others are dealing with.

    Answer by midnightmoma at 2:38 PM on Aug. 24, 2010

  • Chase and bank of america are the worst to name a few.. CNN just did a story about this whole mess and thousands are still loosing there homes after doing the paperwork. Do your own research. I wish you luck.. Special sorry, but we have been dealing with the modification thing for so long I am sick of it. I did get my payments reduced but it was only a temp thing. July they sent my house payment back and last saturday got papers stating the sell date on the house is sept 7th.. It is a joke for millions of people. Oh and I bought my house 8 years ago. Due to job lose is why we got behind. Not too much house. Our house payment is very low but with little coming in it was tough..

    Answer by midnightmoma at 2:42 PM on Aug. 24, 2010

  • I'm not sure. You'll have to check with an attorney who specializes in bankrupcy cases. Before you do that though, you should cry debt consolation or credit counceling. You should also call your creditors up and explain your situation to them. You might be able to work something out. You don't know if you don't try.

    Answer by HotMama330 at 2:58 PM on Aug. 24, 2010

  • If you already have judgments against you, why have they not taken any action? Or have they?
    A chapter 13 is where you make payments to the court for 5 years and then after that five years your debt is forgiven. A chapter 7 wipes the slate clean- you don't make any payments, you don't have any debt- unless it's student loans, tax liens, or child support- none of those are bankrupt-able.

    I don't know if I'd file for bankruptcy depending on the amount- but rather my ability to deal with that amount. Selling a car, taking a 2nd job, having a garage sale, and cutting life style can all help eliminate debt.

    I'm not sure if I'd file for bankruptcy on just $12,000. Bankruptcy follows you through life. Potential employers, landlords, even utility and phone companies can and do ask if you've ever filed for bankruptcy.

    Then again if they are garnishing your wages and you can't deal with them, then maybe it is worth it.

    Answer by Erica_Smerica at 7:29 PM on Aug. 24, 2010

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