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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I am a 59yo solo private business owner, single person who

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I am a 59yo solo private business owner, single person who will loose my business in 3 about months. I have too much (90,000) credit card debt to maintain payments afterwards. I used to make about $65,000/ year but will drop to about $18,000/yr (if I can find employment) immediately. I have no savings, no retirement and I don't think I am eligible for unemployment. I have little equity in anything; my house is worth about what is owed (plus a 2nd mortgage loan) and nothing of value in belongings. It looks as if I made too much money while working to declare Chapter 7 in MI. How does one plan for this? Should I start now? I have an old car (2004) that is paid off and may have $1,000 equity, but is already needing repairs, should I trade it in and get a little bit newer model while I can so I can get to work?
Thank you

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy and Consumer Protection attorney here to assist you.

cfortunato :

Since your house has no equity, and since your car has minimal equity, filing a Bankruptcy will not affect either of these.

cfortunato :

Regarding the timing for filing - you would have to wait until around 2-3 months after you stop earning $65,000 per year to file.

cfortunato :

As the rule is you have to have earned less than $22,056 gross income in the 6 months before filing.

Customer:

What happens to my house if I do international (volunteer, stipend) work or stay with parents in another state to wait 9 months or so to get another job, can I keep my house in MI or rent it?

cfortunato :

A Bankruptcy filing will not affect your house, since it has no equity.

cfortunato :

This is so, even if you are not living in the house, and even if you are renting the house.

cfortunato :

Assuming the rent you receive will be used to pay the mortgages, the rent your receive will not be added to your income to determine whether you can file a Chapter 7 Bankruptcy.

Customer:

thank you

cfortunato :

You're welcome!

cfortunato :

And please have a pleasant day!

cfortunato and other Bankruptcy Law Specialists are ready to help you