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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Due to unexpected medical expenses weve had trouble to keep

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Due to unexpected medical expenses we've had trouble to keep up with our credit card payments. We contacted our creditors to work out a solution with them. With most we were able to arrange an agreement which allows us to pay back the amount we owe, excluding two of them which are not cooperation at all. We won't be able to make all the payments if not everybody cooperates. Would you recommend that we should file for bankruptcy?

Welcome to JustAnswer and thank you for the opportunity to provide you with information..

This depends - can you please tell me whether you are currently employed and what assets you own?

Customer: replied 5 years ago.
I'm self employed. We own our house, the current mortgage is $228,000
Please describe what you mean by self-employed and whether your business has assets. What is the total value of your home
Customer: replied 5 years ago.
I'm a Home Inspector, business is really slow, expected total income for 2011, approx $6,000. Market value of the house right now, extimated $400,000. Total unsecured debt $70,000. Loan on other vacant land $50,000, land value for this property less than $20,000. For all real estate there is no sale likely within the next 12 months, regardless of price. There are no substantial business assets, this means less than $10,000. If we could bring the other two credit card companies to a point that they work with us, we most likely could avoid bankruptcy and we could pay back the debt if they would waive the interest.
So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.

You may want to consider a chapter 13 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. However, you may have to surrender assets, if any, that exceed your exemption. You may be over exemption on your home

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:

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