Is there a reason not to file bankruptcy? 19 Answers as of June 28, 2011

Got screwed by family business, already got a foreclosure under our name, now we have 200k+ in credit card debt. So far, we are still on time with everything, but it would takes 10+ years to pay off all the debts, not to mention our primary house loan only goes up (one of those interest only payment, I know, sucks) is there any reason not to file chap 13?

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Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
Filing for bankruptcy is an important decision. Bankruptcy can be a very useful tool to reorganize your finances and debts, and help eliminate some or all debts to get you back on track and moving forward. A Chapter 7 can be complete in a few months, while a Chapter 13 will be complete in 5 years. Both of these options are likely to leave you in a better financial situation than you would be after 10 years of trying to repay the debts.
Answer Applies to: California
Replied: 6/28/2011
Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
The 200K+ in credit card debt makes you sound like a candidate for some form of bankruptcy, either Chapter 7 or Chapter 13 depending on your income and your assets. To fully diagnose your matter, I need more information about your assets, debts, income and expenses.
Answer Applies to: California
Replied: 6/14/2011
Daniel Hoarfrost, Attorney at Law
Daniel Hoarfrost, Attorney at Law | Daniel Hoarfrost
Some people balk at filing bankruptcy because they worry about the effect on their credit rating.Once you've undergone foreclosure and are behind on significant credit card debt, your credit rating has already taken a beating. The only rational, realistic course of action is to file a bankruptcy.
Answer Applies to: Oregon
Replied: 5/26/2011
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
Reasons NOT to file bankruptcy: 1. You have the money to pay ALL ofyour debts; 2. You will lose your job if you file bankruptcy; 3. If you have no other debts than a mortgage; or 4. You have no debts.
Answer Applies to: California
Replied: 5/25/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Sounds like BK might be an option for you. If you are in WA, contact us we offer free consultations. Thank you.
Answer Applies to: Washington
Replied: 5/26/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Doesn't sound like it. Talk to a lawyer. What most people do not realize is that they can pay off credit card debt at simple 10% interest in Chapter 13 (the 10% representing the trustee's fee, which is less than 10% in some jurisdictions). Even if you make good money, a bankruptcy can often help you.
    Answer Applies to: California
    Replied: 5/26/2011
    California's Largest Family of Attorneys
    California's Largest Family of Attorneys | Doan Law Firm
    If you don't qualify for a Chapter 13 (that is, if you are above the debts limits), it is advisable not to file for a Chapter 13 bankruptcy. If you have more assets that can be protected, it may also be best not file for a bankruptcy. Those are some reasons not to file.
    Answer Applies to: California
    Replied: 5/26/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    The only reason why you may not want to file a Chapter 13 is if you believe you will not be able to make payments under a Plan, or if the Plan would be too restrictive in paying the debt. All of your disposable income is supposed to be used to pay the debts in your Plan. However, if 100% of the debts are going to be paid under the Plan, you can be debt free in 5 years. You will not have access to any credit during the 5 year period that you are paying the Plan. The Bankruptcy will be on your credit report for 7 years.
    Answer Applies to: New Hampshire
    Replied: 5/26/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    You may want to consider a Chapter 7 instead (which wipes out the debt, rather than a payment plan). If you are in my area and wish to consider a Chapter 7, please contact me for a free consultation.
    Answer Applies to: California
    Replied: 5/26/2011
    The Law Offices of Alan M. Laskin
    The Law Offices of Alan M. Laskin | Jared B. Gaynor
    Well, to start you may not even be eligible to be a chapter 13 Debtor pursuant to 109(e), as with the foreclosure and all that credit card debt, you may be over the ~$360K unsecured debt limit. You really need to speak with a local experienced attorney on this.
    Answer Applies to: California
    Replied: 5/26/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    The fact that you could quite possibly eliminate ALL the debt in a Chapter 7 BK.
    Answer Applies to: California
    Replied: 5/26/2011
    The Northwest Debt Relief Law Firm
    The Northwest Debt Relief Law Firm | Thomas A McAvity
    Cannot see any reason why you would not file based on the facts that you have presented; however, it would take an actual consultation with a qualified bankruptcy attorney to determine whether there were any other issues that might prevent or delay an immediate filing.
    Answer Applies to: Oregon
    Replied: 5/26/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    Sounds like you are a candidate for bankruptcy. Only reason to not file Chapter 13 would be that Chapter 7 might be better.
    Answer Applies to: Virginia
    Replied: 5/26/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    With the debt you're carrying,you should file BK. It can help you out instantly or at most within 5 years.
    Answer Applies to: California
    Replied: 5/26/2011
    The Law Offices of Robert L. Driessen
    The Law Offices of Robert L. Driessen | Robert L. Driessen
    It sounds like you are a great candidate for bankruptcy. You should sit down with a bankruptcy attorney and get these debts behind you.
    Answer Applies to: California
    Replied: 5/25/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Many factors are involved in the decision to file bankruptcy. When you owe $200,000 in credit card debt it is likely that a bankruptcy can be filed. There are different types of bankruptcy. Chapter 13 is a payment plan. Chapter 7 is a liquidation. You should choose to consult with an attorney who is a specialist in bankruptcy. Consult the State Bar for a listing of those attorneys in your area.
    Answer Applies to: California
    Replied: 5/25/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    It sounds like bankruptcy would be a very good option for you, however more detail is needed to better assess your case.
    Answer Applies to: Washington
    Replied: 5/25/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Bankruptcy may be the best solution in your case depending on your objectives and applicable exemptions.
    Answer Applies to: Indiana
    Replied: 5/25/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    Depends. The reasons range from whether you have other unencumbered property or you do not qualify for Chapter 13 relief to whether a Chapter 7 filing would be more beneficial for you than a Chapter 13 filing. In any event, there are a lot of issues to consider before making this type of decision. Call us to set up a free initial in-person consultation with an attorney.
    Answer Applies to: California
    Replied: 5/25/2011
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