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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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What is be best route for BR There is no business income,

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What is be best route for BR? There is no business income, I do not own a home. I have quite a bit of credit debt and one vehicle loan. I don't foresee being able to pay much if any but of course I want to be protected. I need to wipe this debt clean and establish my credit back as soon as possible.
1) How many are in your household?
2) What is your gross income (weekly, biweekly, or monthly)?
3) If married, what is your wife's gross income?
4) What is your car worth, and how much is still owed on the car loan?
Customer: replied 7 years ago.

Hi and good morning!


1) There are 6 total in my household with my oldest attending college.

2) My gross in come is about 4,500 monthly.

3) My wife just found a job and she makes 500 bi-weekly.

4) My car is worth about 15k and I owe about 15K.

For the bankruptcy means test, the gross annual income is $85,354 for a family of 6 in Georgia. Your son at college is considered to be a member of the household. If the total income in the household is less than $85,354, you should be able to file for bankruptcy protection.

Edited by Christina Fortunato, Esq. on 5/8/2010 at 1:16 PM EST
Customer: replied 7 years ago.
What chapter is best regarding cost an or credit recovery? What about my car? Would I be able to keep it if I included it?
There are only 2 Chapters available for you: Chapters 7 and 13. Chapter 7 is preferred because in Chapter 7 you don't pay anything to creditors, and in Chapter 13 you make payments to creditors over a 5-year period.
If one make have too much household income (more than $85,354 in your case), then the debtor usually has to file a Chapter 13.
So, Chapter 7 is definitely the best. The court charges a $299 filing fee, and you also have to pay about $50 for 2 credit counseling courses. If you use an attorney, you can expect to pay about $1000 for his services.
And yes, you can keep the car, because it has no equity (the value = the loan).
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