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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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Our son is 27 years old and has $12,000 debt. He is working

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Our son is 27 years old and has $12,000 debt. He is working but jobs in our area don't pay much, and he has a $400 child support payment each month. Combined with necessities such as rent, utilities, car ins, food & gas, he isn't able to make any payments on the debt. Is bankruptcy an option for him? What are the new bankruptcy laws? Will he be able to keep his car? How long would the bankruptcy affect his credit rating?

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 cannot afford his basic needs,

WALLSTREETESQ :

than a bankruptcy would be an option for him,

WALLSTREETESQ :

If his yearly income is below the State median, he would qualify,

WALLSTREETESQ :

in terms of his car, if he has equity in the car it will be an issue,

WALLSTREETESQ :

In AZ, their is a $5000 motor vehicle exemption, so if he has $5000 or less in equity in his car, he can keep it,

WALLSTREETESQ :

For one person the means test,

Customer:

What is the state median for Arizona? He owns the car outright, it. All of the debt is credit card debt.

WALLSTREETESQ :

$42,603

WALLSTREETESQ :

Since he has a child he may be able to counted as a two person household which has a higher limit

WALLSTREETESQ :

$55,404

WALLSTREETESQ :

How much is his car worth?

Customer:

okay. Would he just look in the yellow pages for a bankruptcy lawyer? The car is probably worth $5,000-$6,000. How long would his credit be affected by a bankruptcy?

WALLSTREETESQ :

It would be on his report for 10 years, but after one year of filing, his credit score should improve,

WALLSTREETESQ :

He can look online for local bankruptcy attorneys, or contact the local county bar association,

WALLSTREETESQ :

You can also look at the link above, as it has cheap AZ bankruptcy attorneys listed as well.

Customer:

the car is worth $5K-$6K. How long would his credit be affected by a bankruptcy?

Customer:

Thank you very much. That was very helpful.

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