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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17223
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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My son has been out of work for a couple of months. The prior

Resolved Question:

My son has been out of work for a couple of months. The prior four years he has worked several part time jobs after loosing a full time reasonably good paying job. He seems to be getting back on track, however, four years ago he had a $10,000 US Bank card debt and several others that totaled another $8,000 or $9,000. He was able to maintain the payments and pay the others off. The $10,000 card however jumped to 29%. He attempted to make partial payments but could not keep up with the interest charges, so, he quit paying on the card. Very recently he was served court papers and is being sued for about $16,000 by an agent of US Bank. The question is, can he or should file bankruptcy. He has other debts which he believes he can pay eventually, but this debt is rather overwhelming. As well, he is of course concerned about garnishments and whether or not he will have enough money to live on after all is said and done. Where should I advise him to start resolving this issue. What is the best path for him to take
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 6 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

If he is currently out of work, and has significant debt, bankruptcy would be a good option.

WALLSTREETESQ :

The reason I state this is that he has significant debts, which will only accrue over time with interest, and collections companies will start freezing his bank accounts, and

WALLSTREETESQ :

when he obtains future employment his salary would be garnished.

WALLSTREETESQ :

Also, since he is not employed he would qualify for a chapter 7 bankruptcy with no problem, and discharge all his debts.

WALLSTREETESQ :

You can also advise him that is credit score an rating will actually improve after the bankruptcy, since his balances are gone, and he no longer will have negative marks reported.

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

WALLSTREETESQ :

If satisfied please press the accept button so we can receive credit.

Customer :

This sounds like a good plan, however If he owes $16,000 to US Bank, $1,500 to HSBC and $2,500 school loans and has an income of $1,500 to $2,000 a month, with at least that much going out in taxes, rent, food and utilities, car insurance and maintenance would he still be able to file chapter 7.

WALLSTREETESQ :

Yes, all his debt except the student loans will be discharged.

WALLSTREETESQ :

In Or, he has to make

WALLSTREETESQ :

$44,707, or less and he would qualify.

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

If satisfied please press the accept button so we can receive credit.

Customer :

One more question. Would it be an advantage to file before he goes to court, which I am sure will result in a judgment and all the difficulties that come with that whole process? Thanks again.

Customer :

One more question. Would it be an advantage to file before he goes to court, which I am sure will result in a judgment and all the difficulties that come with that whole process? Thanks again

WALLSTREETESQ :

He can file prior to Court or after, it does not matter much, as the filing would discharge any judgment obtained either way.

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