Thank you for the information:
I lost my property in July 2009, I was told that I have to pay the second debt loan. Also, I was told that I can get relief of debt if I file a Bankruptcy and/or consult with a Real State Attorney to resolve my status. What is your suggestion?
Response: File for Chapter 7 bankruptcy to get rid off the debt. It does not make any sense to try to settle the debt when you have already lost your home.
You may be eligible to file for chapter 7 bankruptcy protection, if you meet the means test--the income test. If your income is equal to or less than the current income guidelines for your family size in your state, you would be eligible to file for a Chapter 7 bankruptcy all things being equal. In Chapter 7, if the Court grants you a discharge your debts will be wiped out. You would get a clean state, a fresh start.
These are the current income guidelines for the State of California:
Household of one person $48,009.00
Household of two persons $62,970.00
Household of three persons $68,670.00
Household of four persons $78,869.00
Add $7,500.00 for additional individual
The filling fee is $299.00. You may able to waive this filing fee if your income is 150% below the current poverty guidelines. Click here for current poverty guidelines:
You must receive budget and credit counseling from an approved credit counseling agency and obtain a Certificate of Credit Counselling to be filed with your bankruptcy case. The agency will review possible options available to you in credit counseling and assist you in reviewing your budget. Different agencies provide the counseling in-person, by telephone, or over the Internet.
It is usually a good idea for you to meet with an attorney before you receive the required credit counseling. Unlike a credit counselor, who cannot give legal advice, an attorney can provide counseling on whether bankruptcy is the best option. If bankruptcy is not the right answer for you, a good attorney will offer a range of other suggestions. The attorney can also provide you with a list of approved credit counseling agencies, or you can check the website for the United States Trustee Program office at http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm
After your case is filed, you must complete an approved course in personal finances. This course will take approximately two hours to complete. Your attorney can give you a list of organizations that provide approved courses, or you can check the website for the United States Trustee Program office at http://www.usdoj.gov/ust/eo/bapcpa/ccde/de_approved.htm
You may also be able to waive the credit counseling fees based on your income. The credit counseling agency that you would choose would make this determination.
Consult a local bankruptcy attorney for further explanations of your rights and responsibilities.
The sites below are good resources for finding bankruptcy attorneys in your area:
If you cannot afford an attorney, then the next best alternative will be to use bankruptcy petition preparer. Bankruptcy petition preparers prepare bankruptcy forms but they cannot give you legal advice because they are not attorneys. Click on the links below for some of the bankruptcy petition preparers. You can do some searches on Google or Yahoo if you do not like the ones on the links below.