Sort:
11-16-2009 at 7:40 PM
TarponMono...
Not Ranked
Joined on 01-14-2006
139,435 Points
TarponMonoxide is not online. Last active: 03-18-2010, 10:32 PMGold

Filing BK and only 7 grand in debt?

This is not for me.

My brother wants to do this. He claims he has seen a bankrupcy atty and the atty says he can file with only 7K debt.

His assets far exceed the seven grand. From what I understand you can't file unless your debt exceeds your asset -- so what is this guy talking about -- or am I wrong?

He's the kind who will sign any kind of a document and not read it through.

 


test test 
11-16-2009 at 7:49 PM
Kaiene
Not Ranked
Joined on 03-27-2008
Maryland
59,772 Points
Kaiene is not online. Last active: 03-18-2010, 7:27 PMSilver

What??

Does he know that the BK filing will stay on his report for several years??


Visit The Nest!
Anniversary 
11-16-2009 at 7:51 PM
krisandgra...
Not Ranked
Joined on 02-10-2009
12,668 Points
krisandgrace is not online. Last active: 03-19-2010, 8:02 PMBronze

WHY would he want to do that!!! Does he have any idea what bankruptcy will do to his life?




PersonalMilestone 
11-16-2009 at 7:57 PM
alg576
Not Ranked
Joined on 08-15-2006
32,474 Points
alg576 is not online. Last active: 03-17-2010, 10:17 PMBronze

That's insane.  I *wish* we were only $7K in debt.  We have a lot more that we're working to pay off and I would never consider BK because we can still pay everything off, albeit slowly.  

 
11-16-2009 at 7:58 PM
TarponMono...
Not Ranked
Joined on 01-14-2006
139,435 Points
TarponMonoxide is not online. Last active: 03-18-2010, 10:32 PMGold
krisandgrace:

WHY would he want to do that!!! Does he have any idea what bankruptcy will do to his life?

This is precisely what I am getting at: he has no idea what it entails.

I said to him, Do you know what is involved?

"Oh yeah," he replies."Basically I file and all my debt is wiped out."

"And that's it?"

He said, "Yep, that's all I need to do."

He has NO idea what is involved. And to top it all off, the laws changed; bankruptcy is supposed to be harder to get --am I right?

 You can't file for seven grand. I had five grand of debt on a credit card and I paid it all down last year -- so what is he talking about?

He's had money problems for years -- he got a hold of a nice wad of cash and spent it all away. And as far as I knew, 5 years ago he told me he had 60K of debt -- now he is claiming he never told me that.


test test 
11-16-2009 at 7:58 PM
dehko
Not Ranked
Joined on 07-27-2008
47,181 Points
dehko is not online. Last active: 03-19-2010, 11:49 PMSilver
He could file, but it will probably get thrown out.

Anniversary 
11-16-2009 at 8:34 PM
sohappyfor...
Not Ranked
Joined on 06-26-2009
5,412 Points
sohappyforthem369 is not online. Last active: 03-09-2010, 12:11 PMNewbie

Why would he go to a bankruptcy att and think they would say anything else?

7K and bankrupt?? I don't think it's going to happen. I think the laws are harder now and if he has assets that far exceed the seven grand - that's a wrap. Ask bother to calm down and see if you can't sit with him and work through it.

Indifferent 

 
11-16-2009 at 8:57 PM
krisandgra...
Not Ranked
Joined on 02-10-2009
12,668 Points
krisandgrace is not online. Last active: 03-19-2010, 8:02 PMBronze
Maybe you could put together a fact sheet for him showing how it will effect his life for the next 15 years, or is it 20? Explain to him that he will not be able to get a credit card, car loan or even rent a car, as that requires a cc. I don't know all that it entails but you could look it up. It sounds like money problems are not new to him.



PersonalMilestone 
11-16-2009 at 9:04 PM
TarponMono...
Not Ranked
Joined on 01-14-2006
139,435 Points
TarponMonoxide is not online. Last active: 03-18-2010, 10:32 PMGold

krisandgrace:
Maybe you could put together a fact sheet for him showing how it will effect his life for the next 15 years, or is it 20? Explain to him that he will not be able to get a credit card, car loan or even rent a car, as that requires a cc. I don't know all that it entails but you could look it up. It sounds like money problems are not new to him.

He tried to do this 2 years ago -- apparently he was told no.

He tried to take out a home equity loan. That was kaput when they did a title search on the house and they found out a second owner was involved.

He hasn't even got money to pay an atty at this point; what is he talking about?

A dumb relative goes to me, "I will lend you the money and then you can pay me back -- give the money to him. Get him out of this hole."

I said to her, "No deal: I am not his mother; if I do that, I am enabling him."

He had a job a couple years ago where he had weekends free -- you think he'd have gotten a weekend job to pay off some of the bills? No. (this was a dumb $12 an hour job -- there was a commute of 30 miles each way -- what did he have left at the end of the week?? See how he has no clue at all? Before he agreed to take the job, he should have asked for at least $4 more an hour)


test test 
11-17-2009 at 3:31 PM
snoboardba...
Not Ranked
Joined on 10-26-2007
St Paul
2,457 Points
snoboardbabe77 is not online. Last active: 02-15-2010, 7:52 AMNewbie

I used to work in banko and while the "laws" have become more stringent, the means test has not really changed. The basic premise in filing banko (I assume 7, not 13), is to show that your expenses exceed your income, thus, no disposable income to pay your debts.

While I, along with most others, don't believe 7k is enough to file (especially depending on the state, Ch 7 alone tends to cost upwards of $1000 or more, not including the $200+ filing fee), it IS enough to file, as long as the means test is met. Seems like a waste to have banko in your record for 10 years for 7k. Do you know if he is current on his bills? Or just not wanting to pay?

It actually has little to with the what your assets are worth-b/c essentially, you are allowed to keep your house or vehicle (assuming you're current), life insurance, retirement, vacation days, X amount worth of personal items (valuation of clothes, etc). There are certain stipulations but all in all - it's enough to file. And I can personally state that when I worked for a banko guy, if it wasn't enough to file-he'd offer an alternative (attempt to settle, write letters to creditors, etc).

Additionally, and good credit standers of America will be disappointed by this-but you'd be surprised how many people AFTER bankruptcy get offers for credit cards (albeit $500 or $1000) and even mortgages (not so much now) or low interest cards within 3 years of filing. Why? B/c the assumption is now that the debt has been discharged - there IS no debt and there IS disposable income to PAY their debt if they accumulate it. Twisted I know.


Beans 
11-17-2009 at 3:34 PM
Mikes_Wife...
Top 150 Contributor
Joined on 08-03-2006
Erie, PA
248,634 Points
Mikes_Wife06 is not online. Last active: 03-20-2010, 6:20 AMGold
It sounds like he needs a new lawyer.

Visit The Nest!

 Baby Birthday Ticker Ticker

Mike & Stacey - July 22, 2006

You + Me = Three 

search boards

choose another board

hot topics

"My MIL is jealous!
Posted by: BriLJL

"How to paint cabinets?"
Posted by: LilyB2521

"We're debt-free -- now what?"
Posted by: AGirlinWonderland