Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
1) How many are in your household?
2) What is the current total gross yearly household income?
3) If you own a home, a) what is the current market value, and b) what is the balance on the mortgage?
4) If you own a car, a) what is the current market value, and b) what is the balance - if any - on the car loan?
You said your employer reduced your salary.
1) Is $60,000 the new amount?
2) Do your have any extraordinary bills, such as for medical expenses?
$60,000 base pay. w2 2010 was $73,000. Overtime has been cut.
No extraordinary bills. No use of credit; have been paying on them for years. Creditors raised interest rates, closed accts and raised min mo pays. Soc sec benefits now paid to my daughter; she's currently keeping $600 of the $1592 which resulted in running behind Oct of last year. That entire amount will end May 2011.
Given the information you provided, you would qualify to file a Chapter 13 Bankruptcy (your income is too high for a Chapter 7). A Chapter 13 works similarly to a CCC, but is much better.
You would have to pay all disposable income (the amount left over after allowable expenses) to the Bankruptcy court for 5 years. At the end of the 5 years, the balance of all unsecured debts (eg. credit cards) can be discharged.
The reason a Bankruptcy is better than a CCC is with a CCC there is no guarantee that there will be no more debt after 5 years, and there is usually at least one creditor who refuses to participate, leaving at least one debt open at the end. This cannot happen with a Bankruptcy, where creditors have to choice, and must accept the program.