How do I file chapter 11 to clear my credit card debt? 17 Answers as of March 23, 2015

I am on Social Security Disability as my only income is $896 monthly. I have approximately $40,000 in credit card judgements against me. I own my home free and clear approximately $170,000 value. I want to go Chapter 11 and clear this debt as there is no way I can ever pay it.

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The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
You would normally see a person filing a chapter 13, not a chapter 11 to get rid of your credit card debts unless there are some more specific details involved in your case.
Answer Applies to: New York
Replied: 3/23/2015
Ch 11 is for a business. You could do a Ch 7 or a Ch 13.? you should be able to exempt the equity in your home by using the state exemptions and file a Ch 7.
Answer Applies to: Minnesota
Replied: 3/17/2015
Stephens Gourley & Bywater | David A. Stephens
I doubt you want chapter 11. It is more likely you want chapter 7.
Answer Applies to: Nevada
Replied: 3/16/2015
GARCIA & GONZALES, P.C. | Richard N. Gonzales
You have too many issues to address here. I doubt you mean Chapter 11. Pay a lawyer for one hour of their time. You have too much to lose. Don't skimp here.
Answer Applies to: Colorado
Replied: 3/16/2015
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
If you live in Wisconsin, a Ch. 11 of itself is unlikely to protect all the equity in your home. Assuming you are unmarried, you can exempt up to $75,000 of the equity in your homestead, and there are various other exemptions but none which will protect all your equity. There are likely other ways of protecting your assets, and I suggest you speak to a lawyer experienced in asset protection and bankruptcy promptly. He or she is likely to have some useful suggestions. Good Luck.
Answer Applies to: Wisconsin
Replied: 3/16/2015
    Ronald K. Nims LLC | Ronald K. Nims
    Chapter 11!!! Your annual income is less than the cost of a Chapter 11. Chapter 11 is for businesses and high income individuals . If you've got credit card judgments, those will be liens on your home. I don't see how it's possible for you to keep a $170,000 home on your income. The annual property taxes alone will be $2,000. You need to sell the $170,000 home, pay off any judgments which are liens, then buy a home you can afford. You also need to talk to a attorney about asset protection, so you don't get you bank accounts garnished or liens on your new home.
    Answer Applies to: Ohio
    Replied: 3/16/2015
    Eranthe Law Firm
    Eranthe Law Firm | Cate Eranthe
    First - I would see a knowledgeable local bankruptcy attorney and make sure I protected my home with the proper exemptions. Start here as it is too important to jump into. Second - I'm sure you mean chapter 7. Chapter 11 is for high wealth individuals or a large business. Third - There is no way to tell you how to file bankruptcy in an online post. There are good Nolo Press books (one on chapter 7) and a lot of information on the Bankruptcy website for your district. If you decide to go it alone do a LOT of study and reading before beginning.
    Answer Applies to: California
    Replied: 3/13/2015
    Grasso Law Group
    Grasso Law Group | Charles Grasso, Esq.
    Based on the information you have provided, it does not sound like a Chapter 11 would be appropriate for you. A Chapter 13 would be more applicable since you own a home and you haven't reached the Chapter 13 limits based on the information you provided. In either case however, you have to be careful that you can properly exempt your home and other assets before filing. If your non-exempt assets are greater than your debts, you will not be an able to discharge the debts completely and will have to propose a plan to pay the appropriate amount of the debts. You may be able to use the homestead exemption to protect your home along with other California exemptions. It would be best to consult with a qualified bankruptcy attorney before filing for bankruptcy so that your particular circumstances can be evaluated.
    Answer Applies to: California
    Replied: 3/13/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    Chapter 11 is only for businesses. You are probably thinking of chapter 13 which requires you to make monthly payments to the bankruptcy court for 3 to 5 years. Unfortunately, you may still have to pay the entire $40,000 depending on how much of your home's value is exempt, and that depends on your state's available homestead exemptions. If you used federal exemptions, you could only exempt $22,975 if you own the home yourself, or if you and your spouse file bankruptcy together, you could exempt twice that amount or $45,950. The Oregon homestead exemption is $40,000 for a single debtor or $50,000 for a couple. Therefore, under either the Oregon or federal exemptions, your "non-exempt equity" exceeds your $40,000 credit card debt and as a result, you would either have to sell your house or pay off all the debt. However, some other states have more generous homestead exemptions and you might be able to exempt all of your home's value. If so, then you could just file a chapter 7 and discharge the credit card debt. You need to speak to an experienced bankruptcy attorney to decide your best option.
    Answer Applies to: Oregon
    Replied: 3/13/2015
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    Not a 11. Either a 7 or small 13 depending on other assets you have. You should speak to an attorney in your area about your options.
    Answer Applies to: Florida
    Replied: 3/13/2015
    John W. Lee, PC
    John W. Lee, PC | Kim A. Lewis
    Chapter 11 is a bankruptcy normally used by businesses attempting to reorganize their finances. Chapter 13 is for individuals who have regular monthly income but need help reorganizing their finances and paying back their debts. You cannot comfortably do either type of bankruptcy. You could file a chapter 7 bankruptcy which would discharge the credit card debt but would also result in the sale of your home. I assume you do not want that to happen which means that there is no bankruptcy solution for your issues. I would recommend that you consult a mortgage specialist. You may qualify for a reverse mortgage which could possibly pay off your debt, provide some extra money for you to live on with no obligation for you to make payments.
    Answer Applies to: Virginia
    Replied: 3/13/2015
    Danville Law Group | Scott Jordan
    You do not want to file a Chapter 11. A Chapter 13, maybe. I would do whatever I could to get you into a Chapter 7. If you are in California, the homestead exemption may cover the equity you have in your home.
    Answer Applies to: California
    Replied: 3/13/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Call for a bankruptcy specialist. I am afraid that you are going to have major issues with your present plan of action.
    Answer Applies to: Michigan
    Replied: 3/12/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Well, chapter 11 is the wrong chapter for you. More like a 7 or 13. I don't know what state you live in. You need to see a lawyer because that is a bit of equity you have in the house. Every state is different when it comes to homesteads and you want to make sure you file the right chapter. The judgements might be liens on the house. You can find lawyers at Nacba.Org. See the attachment.
    Answer Applies to: California
    Replied: 3/12/2015
    Scott Goldstein | Scott Goldstein
    Unfortunately this will not work for you. If you have $170,000 in equity in your home, a Chapter 7 trustee will take it from you. In chapter 11, you need an account to pay the costs and fees. You also need a lot of might and your creditors back because they need to get the full value of what they are owed. You have to much equity in your home.I regret to tell you that I think bankruptcy would be a horrendous idea for you.
    Answer Applies to: New Jersey
    Replied: 3/12/2015
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    I recommend that you contact attorney to discuss your options. It sounds to me like based upon your income you would be eligible for a chapter 7. You would be able to keep your house in a Chapter 7 more than likely.
    Answer Applies to: Nevada
    Replied: 3/12/2015
    Novakov & Associates, PLLC
    Novakov & Associates, PLLC | LINDA S. NOVAKOV
    Individuals on fixed income usually do not file under Chapter 11. I believe you would file under Chapter 7 - which is an individual liquidation of debt petition. Assuming you meet the means test, and you wish to liquidate the debt you have, you should seek a competent bankruptcy attorney to help you with this matter.
    Answer Applies to: Kentucky
    Replied: 3/12/2015
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