Do I qualify for CH7? Drowning in debt!

[Anonymous]

Hi everybody. I'm new to the forums and I'm trying to figure out what I can do to get out from under enormous debt. I went to see a bankruptcy lawyer but truthfully I don't know if he's the right guy for me I didn't get a great vibe and he didn't really answer my questions for me and bankruptcy scares me regarding qualifying for housing rentals I might need in the nearby future but I'm over 40 so I also would like to have a chance of savings. I'm also considering debt consolidation but I'm not sure I qualify and I've read it's a bad thing to do so I'm basically confused and hoping to get some advice from this forum as it seems you guys know what you're talking about!

My debt:

Medical $3,300

Student Loans $22,000

Small Business Loan $24,000

Personal Loans $6,900

Credit cards $15,000

It's a lot! But a lot has happened, my husband broke his neck and couldn't work for a long time then got a bad staph infection and again couldn't work and our house flooded we lost everything so it has been a tough road. I'm really hoping to find some way out of this debt and it seems all of it doesn't even qualify to be bankrupted. I just started a new job and make about $22k a year. My husband also just started a new job and makes about $25k but he has his own debt so I'm just trying to focus on what's in my name right now to get a game plan going and understand how all this works. PLEASE HELP!

[FireMedic1]

Sorry about the trials thrown at you guys. You can shop around for another lawyer that will give you the time of day. The student loans wont be DC'ed. Your salary is low enough to pass the means test. Total debts is a little more than 3 yrs of working and paying with just your salary. None of us really advocate filing. Debt consolidation isn't a good choice. I'd talk to a few more lawyers until you can find one that you feel comfortable with and doesnt just want another payday.

Others will chime in. Good Luck!

[Anonymous]

Thank you Firemedic1 I appreciate the response.

"Total debts is a little more than 3 yrs of working and paying with just your salary"

Did you consider rent and necessary bills like electric, food, etc, with this time frame? I'm just asking because I'd love to know how you came up with that amount of time so I can make it happen! I don't want to file bankruptcy if I can help it as it won't even cover most of my debt anyway.

[FireMedic1]

Sorry I made a miscalculation. Everything would be wiped out except the student loans in BK. I was just looking at your salary and not the DH's. There many other factors that would fall into place.You have your debts as you said. You DH has his. I dont know how you all pay your bills. So I saw no one answered you and I felt bad. So I threw out a responce not being fully awake yet before leaving for work the other day. If you filed as yourself or jointly. The only thing that would be left would be the student loans. With both your salaries combines you guys could pay the SL's off and have a fresh start. I wish I had a better explanation for you guys. But many do better after BK than hoping things will turn around and the damage wont go away. I suggest talking to a lawyer and find out what would be best for both of you. I wish you guys the best of luck and glad the obstacles you all suffered are behind you now.

[Anonymous]

Thank you. I really do appreciate the response, it helps!

[Anonymous]

Hello,

If you do not have disposable income you will be able to file a 7.  I was recently discharged in a 7 based on the kind of debt I had.  I had 60k in credit cards and 180k in student loans.  I filed without the means test due to my debt being primary non-consumer.  You have student loan debt and business debt that could be considered non-consumer.  Therefore, you will not have to take a means test, but you will need to prove that paying your debts would be a hardship.  Like the previous posted mentioned, you not be able to discharge student loans (except in rare cases).  

I think it would be a good idea to keep meeting with attorneys.  I met with 7.  6 of them wanted me to do a 13 with payments could not afford.  I think it is important to find a lawyer that you believe in.

I hope that helps

[nomadic_traveler]

You can talk to as many lawyers as you want for free.  They will all give you an hour of their time in hopes of getting you as a client.  Keep talking to them and ask a lot of questions.  Find one that you connect with.

Continue to read the posts here to how others have delt with bankruptcy.  Good luck!