What are my options concerning my debts? 26 Answers as of July 11, 2013

We bring in around $6K per month but, we have a $2100 mortgage, $27k in credit card debt and we owe the IRS $6k that we are paying $400 a month on. We have just received a legal notice from court that one of the cards is going after a judgment. We tried a debt settlement firm but that turns out to just be another expense. What can we do?

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Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
if you file bk, you can discharge the CC debt. the tax liability is only dischargeable if it's over 3yrs old. a bk filing will stay the lawsuit, if they obtain jmt you can discharge that in the bk as well assuming it isn't a fraudulent cause of action.
Answer Applies to: Washington
Replied: 8/25/2011
Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
You can consider filing for bankruptcy. It is difficult to assess what chapter you can qualify for based on the info below, but at first glance, it looks like it may be a chapter 13 unless you can pass the means test. It will also depend on how many dependents you have in your house hold and if that $6K below is gross or net. The IRS debt may also be eligible for discharge if it can meet certain requirements. If you have a lawsuit as a result from not paying your debt and the debt settlement firm is unable to resolve that and the lawsuit had resulted in a default judgment, then you may risk having that judgment enforced by receiving a wage garnishment, property lien or bank account restraint. If that were to occur, then you should really should consider your bankruptcy option as there isn't much negotiation with a creditor who has a judgment and is able to enforce it against you and collect on it. You should probably consult with a bankruptcy attorney sooner than later to sort out where you stand and what the best course of action is for you.
Answer Applies to: California
Replied: 7/25/2011
Theodore N. Stapleton, PC
Theodore N. Stapleton, PC | Theodore N. Stapleton
It depends upon satisfying the means test and various factors such as how many people in the household and other expenses.
Answer Applies to: Georgia
Replied: 7/25/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You used the word "we" - you might be eligible for chapter 7 bankruptcy. Don't be afraid to file. Congress gave you that right.
Answer Applies to: California
Replied: 7/25/2011
Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
I will help you to evaluate all of your options, including Chapter 7, Chapter 13, debt settlement and doing nothing.
Answer Applies to: California
Replied: 7/11/2013
    Tucker Legal Clinic
    Tucker Legal Clinic | Samuel Tucker
    Unless you have a very large family you probably will have to file a Ch 13 . The debt settlement process generally dies not work out in your best interest.
    Answer Applies to: Mississippi
    Replied: 7/25/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    You should have a consultation with a bankruptcy attorney in your area to examine your options.
    Answer Applies to: California
    Replied: 7/24/2011
    Dearbonn Law Offices
    Dearbonn Law Offices | Ajibola Oluyemisi Oladapo
    Negotiate with the attorneys representing the credit card company for a reasonable sum. If acceptable, the case may be dismissed.
    Answer Applies to: Washington
    Replied: 7/24/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    One option when you owe debts you cannot afford to pay in full is to file chapter 13. A payment plan can be porposed for a period of 3-5 years. You can keep your assets.
    Answer Applies to: California
    Replied: 7/24/2011
    Law Offices of Daniel Moulton
    Law Offices of Daniel Moulton | Daniel Moulton
    Consider filing a Chapter 7, but your ability to do so depends on your household income, number of household members and any potential assets, i.e.home equity, money, investments etc. You need a consultation. A chapter 13 may also work as it can reduce your monthly payments on your car and other credit card debt.
    Answer Applies to: Illinois
    Replied: 7/24/2011
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    You can be helped and your situation can be fixed by a Bankruptcy Attorney.
    Answer Applies to: New York
    Replied: 7/24/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    You need to do the means test to determine if you are eligible to file a Chapter 7 case. If not, then you can file a Chapter 13 case and will have to pay in a Chapter 13 plan for five years whatever disposable monthly income you have after the allowed deductions from gross monthly income. That Chapter 13 plan payment will include your IRS debt. Whatever is not paid in the Plan will be discharged.
    Answer Applies to: California
    Replied: 7/24/2011
    Apple Law Firm PLLC
    Apple Law Firm PLLC | David Goldman
    Depending on the other expenses and how many children you have (if any) a bankruptcy lawyer can run some financial tests to see which types of bankruptcy you can qualify for.
    Answer Applies to: Florida
    Replied: 7/24/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Bankruptcy looks like it might be your only option, assuming you qualify. You need to contact a bankruptcy attorney to make sure you can. I don't know where you are, I'm in the Los Angeles area, so feel free to contact me, but you're going to definitely have to talk to an attorney to see if bankruptcy is a viable option. Probably is, but you need to be sure.
    Answer Applies to: California
    Replied: 7/24/2011
    Advanced Litigation Services
    Advanced Litigation Services | Joseph Iarussi
    File a Chapter 7 bankruptcy.You will eliminate your credit card debt.The IRS debt is not dis chargeable.The collection and judgment will stop.
    Answer Applies to: Nevada
    Replied: 7/23/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    I would look into filing a chapter 7 bankruptcy. This will erase your cc debt and potentially your taxes, depending on how old they are.
    Answer Applies to: California
    Replied: 7/23/2011
    Melinda Murphy Dionne, PC
    Melinda Murphy Dionne, PC | Melinda Murphy Dionne
    Depending on the amount of equity in your home and other assets, you could file a Chapter 7 case and wipe out the credit card debt. If the taxes are more than three years old, you may be able to discharge those as well. Even if the taxes are not dischargeable, you could wipe out the unsecured debt and continue with your payment plan with the IRS. There are other options available to you as well. You should make an appointment with a bankruptcy lawyer to discuss all of your options. Most bankruptcy lawyers offer free initial consultations.
    Answer Applies to: Alabama
    Replied: 7/23/2011
    Law Office of Xochitl Anita Quezada
    Law Office of Xochitl Anita Quezada | Xochitl Anita Quezada
    You need to speak with an attorney to run a means test for you to determine whether you are eligible for bankruptcy and if so, what chapter.
    Answer Applies to: California
    Replied: 7/23/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Debt settlement firms are mostly scams. Many are criminal. Stay away from them! Do NOT use one. Even the few legitimate ones are usually bad news. You do not want to wait for a judgment as that will allow garnishments (and a lien on your home). That means you have an emergency and must act within 30 days of service of the suit. You may have options under bankruptcy (Chapter 7 or 13) to eliminate or reduce debts. See a bankruptcy lawyer quickly to run the numbers.
    Answer Applies to: Georgia
    Replied: 7/23/2011
    Lehn Law, PA
    Lehn Law, PA | Joseph W. Lehn
    Depending on the size of your family and other financial factors you may be eligible to file a chapter 7 bankruptcy and discharge the credit card debt. Bankruptcy stops all collections and judgments
    Answer Applies to: Florida
    Replied: 7/23/2011
    Florio Law Firm, PLLC
    Florio Law Firm, PLLC | Amber Morgan Florio, Attorney at Law
    You may be able to file a Chapter 7 or a Chapter 13 Bankruptcy. Both Chapters would be able to help you with the law suit and unsecured debt. IRS debt is generally non dischargeable, however, there are some exceptions. You should speak with an attorney to have a full evaluation to answer these questions more completely.
    Answer Applies to: Texas
    Replied: 7/23/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    It sounds like bankruptcy relief might be a good solution for you to get things under control. You should consult local legal counsel.
    Answer Applies to: Indiana
    Replied: 7/23/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    You're right about the debt settlement places- they cost money and do nothing. You can file bankruptcy, which will stop the suit. And if your taxes are old enough you can discharge them, too.
    Answer Applies to: Virginia
    Replied: 7/23/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    You could explore filing for bankruptcy. A Chapter 13 filing would likely be the most appropriate under the circumstances you outlne, but a consultaiton with an experience attorney will allow you to determine your best course of action.
    Answer Applies to: Colorado
    Replied: 7/23/2011
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