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Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6392
Experience:  20 years of professional experience
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Sister in dire need of bankruptcy advice and can't afford the

Customer Question

Sister in dire need of bankruptcy advice and can't afford the fees. She is about 2 months away from being totally insolvent. What should she do?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  HPlawyer replied 7 years ago.
How much did the CT attorney want to charge her?
Customer: replied 7 years ago.
$2,800 was the quote after learning she had $4,000 in money market account. In prior answer should have noted that shows home now worth about $440,000 but it needs a lot of work or needs to expect a low-ball offer. Sister owes $360,000 including first mortgage and equity line.
Expert:  Maverick replied 7 years ago.

Does she want to keep the home?

Does she have income? If so, how much per month?

What is the amount of the mortgage and equity line payments combined per month?


Customer: replied 7 years ago.
Income = $3575.00, mtg and equity line=$1,829.00, credit cds=$789.00, Other liab=$364, Taxes=$5,000 per yr, etc., etc. I can give you more if you want. She wants to sell the home but it needs work and I'm not sure she can get a decent offer. Husband with Alzheimer's Disease and no Long-term health care.
Expert:  Maverick replied 7 years ago.

Because she has equity in the home and because of her income level, it sounds like she needs to file for chapter 13 bankruptcy protection. This will allow her develop and submit a 3 to 5 year payment plan by which she can pay / catch up on secured debts like the home. The primary benefit would be that unsecured debts may get reduced to cents on the dollar (like the credit cards) so that she have breathing room.


If she cannot afford a lawyer, she may want to try a BK filing service like the one at the link below and do the BK on her own.


There may be others out there that you can compare this one to.



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Customer: replied 7 years ago.
Thanks for that advice and recommended direction. Why not Chapter 7 for her? If she is able to sell the home would that change your advice from 13 to a chapter 7?
Expert:  Maverick replied 7 years ago.

She can try for a chapter 7 but after the 2005 changes in BK laws, you have to submit to a "Means Test" to see if you can qualify for a chapter 7. You can probably find that test on the link I showed you earlier. Since the means test is dependant on the locality in which you reside and your income level, there is a chance she may not qualify for the chapter 7.


If she sell the home and get her equity back, then she may not qualify for the BK as she would then have enough money to pay for her debts as they become due.

Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6392
Experience: 20 years of professional experience
Maverick and other Bankruptcy Law Specialists are ready to help you
Customer: replied 7 years ago.
Thank you for your advice. It has been very helpful.
Expert:  Maverick replied 7 years ago.

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