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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Im 33 years old and due to a rash of unemployment over the

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I'm 33 years old and due to a rash of unemployment over the last few years, I am beginning to consider bankruptcy.
I've had a judgement against me from a failed business loan, a repossession, and gobs of medical bills that I just don't know that I can pay back.
I hate the idea of doing this... but a friend told me that it really helped them out.
My questions are as follow:
1) If I declare bankruptcy... seeing as I have no real assets (I rent, own a piece of junk car, only own a computer really) would Chpt 7 be the way to go?
2) Would I be able to get a home loan if I wanted to buy a home one day? If so, how long would I wait (generally speaking)
3) Are there any hidden "bombs" or drawbacks to filing?
*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*

Hello,

Thank you for your question. My name is ***** ***** I will do whatever I can to answer your questions!

I agree that a chapter 7 bankruptcy would be appropriate. I will explain.

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.

The drawback of a chapter 7 is that a debtor would be required to surrender any assets that exceed the state allowed exemption. In your situation this drawback would not apply as you do not have any assets that are of value to a third-party.

Typically a Chapter 7 debtor is able to reestablish credit sufficient to purchase a home in approximately 2 years

I would be glad to continue our conversation and respond to any follow-up questions that you may have.
Ellen and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 years ago.

FiveStarLaw,

Thanks so much for your expedient response. While insightful... I still have some questions and there has been a slight change so I last communicated with you.

Ok... so slight change occured.

This past Friday I was able to secure a newer car... nothing special ... 07 civic (price was $10,800 but after all payments are made - assuming I didn't refi in a year - I'll pay close to double that because of my poor poor credit)...

1) So assuming I file for Chpt 7... would I be able to keep the car and continue making payments to help assist in the rebuilding process or would I have to turn it in?

2) You mentioned that TYPICALLY... a chapter 7 debtor could re-establish credit sufficient to obtain a home loan within 2 years. Would that be at an APR similar to the car mentioned above? Would that be through any lender, or just FHA, etc? Can you please elaborate here?

3) Assuming I were to file chpt 7 tomorrow, what could I do to begin the rebuilding process in the most expedient manner?

4) I've been told that the bankruptcy would stay on my credit report for 10 years... what other drawbacks would I face with this course of action?

5) In your professional opinion, would I be better off doing a consumer credit counseling group style plan?

6) One of the items on my credit report is a $7k debt left over from a repossession on the first car I ever bought... I had a cosigner... would this affect the cosigner - what can I or should I do about this?

All in all... I really think the Chpt 7 would be helpful... but for some reason something in my gut says it wouldn't be as cut and dry... perhaps there would be hidden surprises...

I know this is not legal advice... I am just trying to put together as much information as possible so I make the most informed decision possible.

Thoughts, direction, guidance, links, etc are all appreciated.

Thanks again!

Hi Marc,

Thank you for your response.

1) So assuming I file for Chpt 7... would I be able to keep the car and continue making payments to help assist in the rebuilding process or would I have to turn it in?

You can choose to keep the car and continued to make the payments

2) You mentioned that TYPICALLY... a chapter 7 debtor could re-establish credit sufficient to obtain a home loan within 2 years. Would that be at an APR similar to the car mentioned above? Would that be through any lender, or just FHA, etc? Can you please elaborate here?

I use the word "typically" because the reestablishment of credit is dependent upon the financial actions of a person after having filed bankruptcy.


I am certain that you will have additional questions as this is a very complex and important situation. I am happy to answer all of your questions however I need to request that you start a new question page for each future question. No worries about the cost as I see that you are a subscription customer. A subscription customer can ask unlimited questions under the terms of the subscription.
Hi Marc,
I did not receive a follow up question from you. Have I answered all of your questions to your satisfaction?