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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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we are over 20000.00 in credit card debt. my husband and i

Customer Question

we are over 20000.00 in credit card debt. my husband and i are disabled and living on social security. because of his serious health issues we go into the donut hole with his meds in july and his insulin alone is over 200.00 a month. our income is 1961.00 a month and our mortgage and lot rent is 799.00 a month. along with utilities, car payment, car insurance, homeowners insurance and medical needs we are struggling to keep our heads above water. we have been unable to make payments on our credit cards for the last 9 months. is bankruptcy an option for us? how much does it cost and will we have to sell our home and car?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.
Hello,

You may want to consider a chapter 7 bankruptcy. I will explain.


As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.



A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. it appears that you would be permitted to keep your house and your car



A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.


Here are the exemptions for Colorado:
http://www.bankruptcyinformation.com/CO_exemp.htm



Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER

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