What type of bankruptcy do I qualify for? 26 Answers as of January 21, 2013

I recently found a job paying me 14k a month. I own a home with 995k first and a 250k second. The home is in foreclosure. I owe about 200k in credit cards. I am late on all of them. What can I do?

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Law Office of Asaph Abrams
Law Office of Asaph Abrams | Asaph Abrams
I know it's trite to say so (attorneys and their disclaimers, pah!), but there's more to your question than a general-info site can answer. You must IMMEDIATELY consult with a qualified, experienced bankruptcy attorney. As part of a comprehensive review discuss with her/him specifically: Urgency of filing. Whether your high income may preclude chapter-7 eligibility. Whether your high debt may preclude chapter 13 eligibility. Whether a short-sale is imperative. Whether $200K in credit card will trigger a red-flag with the US Trustee and others. This answer (as well as our Web site) doesn't address all facts & implications of the question; it's general info, not legal advice to be relied upon; it creates no attorney-client relationship; it may be pertinent to CA only; it's independent of other answers. Hire legal counsel before acting or refraining from bankruptcy/legal action.
Answer Applies to: California
Replied: 8/13/2011
Eric J. Benzer, Attorney at Law
Eric J. Benzer, Attorney at Law | Eric Benzer
Hire an attorney today
Answer Applies to: Maryland
Replied: 8/6/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
See a lawyer..... you may pass the "means test" as you just got this job. Do it ASAP. Time is NOT on your side. The mortgage payments will help and so will car payments.
Answer Applies to: California
Replied: 8/5/2011
Bird & VanDyke, Inc.
Bird & VanDyke, Inc. | David VanDyke
Although your income seems high, I suggest you look into a chapter 7. You may qualify if you file prior to losing the home.
Answer Applies to: California
Replied: 8/4/2011
Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
It's highly unlikely that you would be able qualify for a ch. 7 because of your income level is far too high. However, if your income for the 6 months prior to now is lower than the median income for an individual in CA, you may have a shot at a ch. 7, since you said that you just started a working at this job. If not, you may be able to file for a ch. 13, which would be able to put your past due mortgage payments and unsecured debt into a 60 month plan to pay back what you can from your disposable income. I would definitely recommend speaking with an experienced attorney who can help sort through your specific situation and advise you accordingly.
Answer Applies to: California
Replied: 8/4/2011
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    Based on your income of $14,000/month you probably don't qualify for Chapter 7 because your income is above the median for Utah. However, depending on what your average income over the past six months is, it is possible you still qualify. You should consult an attorney or fill out the Chapter 7 Means Test Form immediately to see if you qualify. If you don't qualify for Chapter 7 you might also not qualify for Chapter 13 because both your secured and unsecured debt exceed the debt limits. At this point you could file Chapter 11 or you could wait until after foreclosure to see what debts remain and whether you qualify for Chapter 13 at that time.
    Answer Applies to: Utah
    Replied: 1/21/2013
    Bankruptcy Law Center
    Bankruptcy Law Center | Bill Zurinskas
    You can file a chapter 13 bankruptcy to cure the defaults on your first and second mortgages.
    Answer Applies to: Colorado
    Replied: 8/4/2011
    Law Office of Dennis Jay Sargent Jr, PLLC
    Law Office of Dennis Jay Sargent Jr, PLLC | Dennis J Sargent Jr.
    There are a number of different criteria to review and consider, not just income and basic debts. You also need to consider household size, location and monthly expenses. In addition, there are tax debts and other bills that need to be considered. You cannot fully appreciate what your situation is without a complete analysis of your situation. It would seem from your limited disclosure that you would probably best be served by a Chapter 13, but that cannot be fully understood without more and complete data.
    Answer Applies to: North Carolina
    Replied: 8/4/2011
    Theodore N. Stapleton, PC
    Theodore N. Stapleton, PC | Theodore N. Stapleton
    You need to call me immediately. You may qualify for a chapter 7 but only if you pass the means test which involves an income ceiling which you exceed, but you can deduct payments on secured debts like mortgages so you need to file the BK, if you qualify, before they foreclose and you lose those expenses.
    Answer Applies to: Georgia
    Replied: 8/5/2011
    Engberg Law Office
    Engberg Law Office | Harry A. Engberg
    You can file a Chapter 13.
    Answer Applies to: South Dakota
    Replied: 8/5/2011
    Dearbonn Law Offices
    Dearbonn Law Offices | Ajibola Oluyemisi Oladapo
    I suggest you consult an attorney in your area to determine your eligibiity for a chapter 13 bankruptcy after running a means test based on your assets and liabilities.
    Answer Applies to: Washington
    Replied: 8/4/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    Depending on how long you were out of work, you might qualify for a Chapter 7 for a short time. However, you will soon not qualify due to income. You can't file Chapter 13 due to debt limits. This may make a Chapter 11 reorganization your only option.
    Answer Applies to: Colorado
    Replied: 8/4/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    You're probably not going to be able to do a 13, as you're over the debt limits... It's either a 7, or if you can't qualify, you might be stuck with no alternative other than an 11
    Answer Applies to: California
    Replied: 8/4/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    That depends on how long you have been on the job, what income you made in the past six months from this and other sources, many people are in your household, what the value of the home is, what your monthly mortgage payment is, whether you are seeking to keep the house, what other secured debt you have, what other unsecured debt you have other than credit cards, if you have any taxes past due, etc. etc. etc. Bankruptcy is a more complicated than being just a process of filling in forms with numbers. Based on the limited information given, it is unlikely you would qualify for Chapter 7 based on income and based on secured debt and how much of that is really unsecured, you may qualify due to the debt limitation to file a Chapter 13. You should consult with a bankruptcy attorney as each instance is different and each case is therefore different.
    Answer Applies to: California
    Replied: 8/4/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    There is a jurisdictional limit for filing chapter 13. Unsecured debts cannot be more than $360,475 and secured debts cannot be more than $1,081,400. If you exceed these limits you can qualify for a chapter 11 reorganization.
    Answer Applies to: California
    Replied: 8/4/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    It sounds like you will have to file chapter 13 bankruptcy. You should speak to a bankruptcy lawyer in your jurisdiction.
    Answer Applies to: Washington
    Replied: 8/4/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    You *might *not qualify for Chapter 7 because of too high income and you * might* not qualify for Chapter 13 because of too much secured debt. You need to see an experienced bankruptcy attorney and with your income now there is no excuse for not doing that ASAP. There is a Chapter 11 available for people who can not do Chapter 13 to pay arrears on a home (and other things) but it is very expensive and complicated.
    Answer Applies to: California
    Replied: 8/4/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    Find
    Answer Applies to: Virginia
    Replied: 8/4/2011
    Melinda Murphy Dionne, PC
    Melinda Murphy Dionne, PC | Melinda Murphy Dionne
    You may have too much secured debt to qualify for a Chapter 13 case. How much is the house worth? If it is worth less than your first mortgage, you could be in a position to strip off the second lien. You qualify for a Chapter 7 case or a Chapter 11 case based upon the facts you have supplied. You need to immediately speak to an experienced attorney that can assist you in working out a plan to solve your financial problems.
    Answer Applies to: Alabama
    Replied: 8/4/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    You presumably make too much for Ch 7 and appear to be over debt limit forCh 13. You may need to go Ch 11.
    Answer Applies to: California
    Replied: 8/4/2011
    Law Office of Felipe A. Malo, P.A.
    Law Office of Felipe A. Malo, P.A. | Felipe Augusto Malo
    U only qualify for chapt 13
    Answer Applies to: Florida
    Replied: 8/4/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    The facts you give lead me to think likely a Chapter 7 but depends on details we don't have. Be aware that pro se cases often go badly and you need to make your decision with counsel.
    Answer Applies to: Georgia
    Replied: 8/4/2011
    Ryan Legal Services, Inc.
    Ryan Legal Services, Inc. | Kevin Ryan
    you should contact an attorney who handles Chapter 13 but you may not be eligible due to your having debts in excess of the total limitation on real estate claims. That amount changes periodically and I do not have the exact figures at the time of this writing.
    Answer Applies to: Ohio
    Replied: 8/4/2011
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