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Need help!

Established Member

Need help!

One of my friends asked me this question so I thought to post here.

 

He had credit cards with total limit of around $75k. He withdrew cash from all these cards & invested in a business overseas (in his home country). Unfortunately, the business started having losses & a point came when all capital eroded. He lost almost all his $75k. At the same time, he got laid-off from work.

 

He is now having too many difficulties paying off his bills & is thinking to file bankruptcy. Which form of BK should he file & do you think the court will accept his justification & forgo all his debts?

 

Thanks

Message 1 of 8
7 REPLIES
Established Member

Re: Need help!

Bump

Message 2 of 8
Community Leader
Senior Contributor

Re: Need help!

I think there is way too much other information that could change this answer and a free consultation with BK lawyer would be the way to go. Good luck

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
730 EQ FICO 11/2017
750 TU FICO 11/2017
735 EX FICO 11/2017
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Message 3 of 8
Frequent Contributor

Re: Need help!

Tell us

 

Assets?

Income?

Debt?

Obligations?

 

 

These 4 things will help get a clear picture. 


Starting Score: 501
Current Score: 754 EQ,TU 745,EX 750
Goal Score: 800

Message 4 of 8
Established Member

Re: Need help!

Assets? No assets

Income? His wife is a doctor & earns around $120k so their household income is 120k. As just lost his job, he currently has no income.

Debt? $75K credit card debt as a result of business default. No other debts.

Obligations? Sorry I didn't get this. Can you pls elaborate this?

Message 5 of 8
Regular Contributor

Re: Need help!

A consultation with a lawyer will help. When my wife and I met with a lawyer he told us that our income was too high to file CH7 BUT since most of our debt was business debt we passed the Means Test and we were able to file CH7. This seems to be the case for your friend but I would recommend meeting with an attorney.


Starting Score: TU 477 EQ 533 BK 1/27/2012
Current Score: EX 702 TU 681 EQ 652 1/10/2014
Goal Score: 700


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Message 6 of 8
Established Member

Re: Need help!

Comet21

 

Thanks a lot for your reply.

 

I would definitely suggest them to consult a BK laywer but Do they consider the household income or only the income of the person filing the BK? Since their household income is $120k, will they be eligible for BK?

Message 7 of 8
Highlighted
Regular Contributor

Re: Need help!

I am not sure. I would think only the person filing but I do not know.


Starting Score: TU 477 EQ 533 BK 1/27/2012
Current Score: EX 702 TU 681 EQ 652 1/10/2014
Goal Score: 700


Take the FICO Fitness Challenge
Message 8 of 8