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FiveStarLaw
FiveStarLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36416
Experience:  Bankruptcy Lawyer. Experienced.
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I am considering personal bankruptcy and would like some feedback.

Resolved Question:

I am considering personal bankruptcy and would like some feedback.

My income is in jeopardy due to economic conditions in the industry I work in. My income is in the 150-200K range.

I've racked up approximately $60,000 of credit card debts. My auto loan is $28,000, the car is worth under 20K, and it is a lemon....long story, but the dealership hid the defects and has sweet-talked me into being complacent, until now.. I have an underwater condo with a current mortgage. Alimony and child support payments are huge, I am planning to engage a lawyer to seek modification. I own a SEP. I also own 50% of an LLC that owns a real estate property debt free that is about 200K, my half would be about 100K. I lease an apartment, ten more months on the lease, can't afford it. And one more auto loan, about 17K on a car "borrowed" by a relative, I can't afford this either, the car is worth about 14K. Okay, what do you think? My aging parents plan to leave their estate to me, as their only child. My credit has been excellent until recently; I've been victimized by unauthorized credit card charges and withdrawls from checking, it's been done by a hacker and friends of family and not sure who else.

Am I a good candidate for bankruptcy, and, if so, which one?
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  FiveStarLaw replied 2 years ago.
Welcome to JustAnswer,

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) unsecured debt such as credit cards, judgments and personal loans. However your income disqualifies you from filing a Chapter 7

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your debt over a 5 year period. However, at the end of the plan the balance of the debt would be discharged

Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.
FiveStarLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36416
Experience: Bankruptcy Lawyer. Experienced.
FiveStarLaw and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 2 years ago.
A few clarification questions.....

What would happen to my 50% LLC interest?

What would happen to the "underwater" condo?

How should I address the auto loan that relates to the alleged fraud?

what income limit is their on the ch 7 option?

Expert:  FiveStarLaw replied 2 years ago.
A few clarification questions.....
It is my pleasure.


What would happen to my 50% LLC interest?
in a chapter 13 bankruptcy you would continue to own your 50% interest


What would happen to the "underwater" condo?
You would be required to continue to make payments on the condo if you would like to keep the condo. If not the condo would be foreclosed and any deficiency would be included in your payment plan


How should I address the auto loan that relates to the alleged fraud?
You would need to discuss this with a criminal attorney

what income limit is their on the ch 7 option?
For single debtor the income limitation is $45,391. For a family of 4 the income limitation is $87,163
FiveStarLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36416
Experience: Bankruptcy Lawyer. Experienced.
FiveStarLaw and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 2 years ago.
what would happen to my auto loans, especially the one in which I would return the car which is worth about 8K less than loan balance?

how is credit card payment plan determined? is this the same approach as non bankruptcy credit card workout?

my LLC interest has value, I wouldn't have to sell it?

Expert:  FiveStarLaw replied 2 years ago.
what would happen to my auto loans, especially the one in which I would return the car which is worth about 8K less than loan balance?
any deficiency would be included in your payment plan

how is credit card payment plan determined? is this the same approach as non bankruptcy credit card workout?
all disposable income must be paid into the plan for 5 years. You would need to meet with local counsel to determine the actual numbers

my LLC interest has value, I wouldn't have to sell it?
no you could keep the LLC. In a Chapter 7 you would have to sell the LLC but not a 13.
Customer: replied 2 years ago.
How would future inheritance be handled?
Expert:  FiveStarLaw replied 2 years ago.
It depends upon when you become entitled to the inheritance. If you become entitled to the inheritance prior to completing 36 months of the plan you will need to pay the inheritance into the plan
FiveStarLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36416
Experience: Bankruptcy Lawyer. Experienced.
FiveStarLaw and 3 other Bankruptcy Law Specialists are ready to help you

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