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dkennedy, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6009
Experience:  15+ years experience
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We are trying to get things ready to file a chapter 13, the

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We are trying to get things ready to file a chapter 13, the lawyer says we don't make enough money to pay the B/R payment and live (my husband works an hourly job (with benefits) and I am opening a beauty shop. I kinda undersatand that but they have not offered to help us in any other way, what do we do? new lawyer? do something on our own?? Just about to drive us crazy. We were in construction business for 17 years and paid our bills, about 3 years ago we went to work for GSA with a contract and that is when things started going down hill. A lot of it is IRS (personal and company) and the other is cc company & personal. We have lived in the same house for 25 years and it is paid off so we paid our bills. By the way, my husband is 60 and I am 65. We just need to know where to start. Thanks, Norma


Why did you only consider a Ch. 13? Do you have non-exempt property?

Customer: replied 4 years ago.

The lawyer only suggested a ch 13, never even anything else. We talked to him for about 10 min. not sure what you mean by non-exempt property. thanks Norma

A chapter 13 bankruptcy is called the "wage earner" plan. You would make a plan to be approved by the court to pay off all your creditors at "so much" on the dollar. The creditors have to take what you give them, as ordered by the court. For instance, you may owe Visa $5000 and the court-approved plan might have you make payments totaling $2,000. And then they are paid off. You would make one payment per month to the bankruptcy trustee who then divides it up among your creditors. One of the big advantages is that you can keep non-exempt property and not have it taken from you by the trustee. Non-exempt property would be like an airplane, extensive jewelry collection, stocks and bonds, etc.

In a Ch. 7, your debts are liquidated, except most taxes. They just go away. You can keep your house, car, furniture, personal belongings, pension, etc.

I don't know the details of your finances, so I suggest you get a free consult with another bankruptcy attorney who can advise you better than the first one did. Please feel free to ask any follow up questions that you have. It's a lot of information to digest!

dkennedy and other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.

The last time my husband talked to the lawyers helper, she said we didn't make enought money to file and to live, but at our ages we are doing the best we can. Thanks

What does that even mean? When you file a Ch. 7, there is an automatic stay when you don't have to pay any bills during that time. Most of your bills would be discharged in the bankruptcy and you could make a fresh start. What do you think this "helper" was trying to say?