can I file CH 7

[seekcredit]

I had a business back in 2016 that did not do well, I used credit cards for business expenses and personal needs. The credit card companies closed all my accounts in 2017-2018.

All my credit card debts are over four years now, I waited for a friend of mine that promised he was gonna give me a job with an income of $150k a year and I was planning on settling my debts with the banks by making $7,000 or $6,000 a monthly payment until I pay them all off.

I got tired waiting for my friend's promise now, I found a job that will pay me about $75,000 or $80,000 a year with this income! I will not have enough money left to pay the banks.

I have been holding this for over four years, trying to avoid bankruptcy but I came to a point that I have no choice. Is it possible to file CH7 ?

[FireMedic1]

Welcome to the forums @seekcredit 

look up your states medium income. If your under it. Chapter 7 is ok. Over will be a Chap 13. I had to stop working OT for 6 months until I dropped below the rate in Fl. Once filed back to the OT.

https://www.justice.gov/ust/eo/bapcpa/20220401/bci_data/median_income_table.htm 

[seekcredit]

I checked my income, and it shows about $12,000 higher than the median income.

[FireMedic1]

Well best thing is talk to a lawyer. They'll work out a plan. Maybe take a cut in pay for a short period until its over. My base pay was ok at main job but with OT and PT job was too high and like I said I cut out all over time and didnt work my 2nd PT job. Got below the numbers and filed. Best of luck!!!!!!!

[Marie4580]

---

@FireMedic1 wrote:

Welcome to the forums @seekcredit 

look up your states medium income. If your under it. Chapter 7 is ok. Over will be a Chap 13. I had to stop working OT for 6 months until I dropped below the rate in Fl. Once filed back to the OT.

https://www.justice.gov/ust/eo/bapcpa/20220401/bci_data/median_income_table.htm 

---

I agree, income is the main driver. Easiest to get a free consultation with an attorney to figure out your options. You can also wait 3 more yrs for the debt to fall off your credit (if you have not made any payments to the debts since you said it has been about 4yrs). The statue of limitations is usually 4yrs in most states. If none of the creditors you owe have sued you yet, it is likely they cannot and never will. I would ride it out if you can unless you are trying to do something specific that requires the debts to be removed.

[Marie4580]

---

@seekcredit wrote:

I checked my income, and it shows about $12,000 higher than the median income.

---

Just saw this. I would speak to an attorney anyway and let him give you your options.

I did not qualify for a 3yr ch 13 bk. My attorney wasn't sure but he asked the court for it anyway and it was granted. Bankruptcy law is complicated, best to let the attorney help tou decide. A good attrny is important. I talked to some that didn't think I should file and some tht said I would have to give back one of my vehicles because I'm not married and one is a luxury car (650i bmw) ect ect. I didn't stop until I found my lawyer and now i am almost 1yr into my ch 13 (3yr plan). I pay $230 a month and make 90-95k each year. Debt included in bf exceeded 30k (not including student loans), I even added my attorneys fees into my bk, additionally 4500. I live in CA and that is on the very cheap side for bk ch 13. 

*Got to keep both vehicles (both newer than 2017), kept my jewelry I have a ring appraised over 5k, I also have earrings at over 2k (burned a jewelry company in this bk but I had paid off all my jewelry except $1,000)