Bankruptcy

[hussain99]

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

[hussain99]

Bump

[Scupra]

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

[shols44]

Tell us

Assets?

Income?

Debt?

Obligations?

These 4 things will help get a clear picture. 

[hussain99]

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?

[Comet21]

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.

[hussain99]

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?

[Comet21]

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