How to get debt-free with Bankruptcy

Guest 0.10 Dollars($)

I was in car accident in 2004 and had surgery 2005 and 2006 as a result of this accident. Because I was off from work each year for about 3-4 month I got behind in my bills. I was off work from 7-7-06 until 10-09-06 with no pay I have tried to avoid bankruptcy but I just can't see my way out. I am in about 21,000.00 of debt this is ruff estimate wshould I file chapter 7 or 13

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.41 Dollars($)

Hi Pat,

Sorry to hear about the problems you are facing.

Before filing for bankruptcy you will be required to undergo credit counseling. It will be used to check if you are in a position to pay a certain percentage of the debt or not.

And also a Means test to determine filing which type of bankruptcy will be appropriate for you.

David

psteward · Joined: 22 Dec 2006 Posts: 2 1.53 Dollars($)

If I file will my furniture be taken it is one of the bills I can not pay

Guest 0.10 Dollars($)

Under chapter 7, your non-exempt property will be sold to pay off the dues.

And in chapter 13, your debts will be restructured and a suitable payment plan will be formed which you can afford to pay off the debts within a specific time frame.

As such it all depends on which chapter you qualify for. Also let me suggest that you try to enroll into any form of debt consolidation program before finally deciding on filing bankruptcy.

Lay Hurst

Samantha · Posted: Thu Jan 04, 2007 12:15 am Post subject: RE:

Hi Pat,

Welcome to this forum.

It's hard to imagine what you have gone through. It's really traumatic. I can only pray for your good health.

You said you have tried to avoid bankruptcy but then have you tried out any other option to repay your debts?

There are some alternatives which may help you get out of this situation.

Refer to the section on
Alternative ways to avoid bankruptcy to know more about the options.

Feel free to ask us if you have any query on the alternatives.

God bless you.

Samantha

Guest 0.10 Dollars($)

While filing bankruptcy what are eight priority taxes?

Guest 0.10 Dollars($)

All debts of a debtor are assigned priorities for payment in bankruptcy. Most of prepetition tax debts are regarded as eight priority taxes.

Normally these are certain income & other taxes that debtor owes before he files a bankruptcy petition.

Samantha · Posted: Tue Mar 27, 2007 2:49 am Post subject: RE: Eight priority tax

Hi McCutchin,

Welcome to the forum.

The prepetition eighth priority taxes are unsecured federal taxes given below:

Income taxes for the tax years ending on or prior to the date of filing bankruptcy, for which a return is due within 3 years of filing the bankruptcy petition.
Income tax assessed within 240 days before the filing.
Withholding taxes which you are liable to pay.
Income tax which was not assessed prior to the petition date but were to be assessed on the petition date. These taxes were still assessable as on the petition date because there was no return, late return (within 2 years of filing) or fraudulent return filed.
Excise tax on transactions which occur prior to the date of filing the petition, for which a return is due within 3 years of filing the petition. If the return is not required, these excise taxes include only those taxes on the transactions started during 3 years immediately prior to the filing date.
Employer's share of employment tax on wages or commissions (including vacation, sick leave etc) paid as priority claim or for which a return is due within 3 years of the filing date, including a return for which extension of a filing date is obtained.

Hope this is going to help you...

God bless you.

Samantha

Guest 0.10 Dollars($)

About 4 yrs ago I had a ch 13 case dismissed for non payment. My home was in foreclosure and included in the case. Aprroximately 7 mths after the dismissal I was able to satisfy my mortgage obligation. Is there anyway I can have my dismssal changed to something else so that I start obtaining credit again?

jameshogg

Hi Rosie,

Welcome to forums.

It's good to know that you paid off the obligation even after a bankruptcy dismissal. But the fact remains that even though your bk Chapter 13 may have been dismissed, it's going to stay on your credit report for 10 years. Had the bk been discharged, it would have stayed for almost 7 years. However, the negative effect on bk dismissal gets minimized with time; so you can very well opt for a loan with favorable terms after a year or two from now onwards. But in the meanwhile you should make on-time payments on other debts, so that they can offset negative impact due to the dismissal, at least to some extent.

Thanks

Guest 0.10 Dollars($)

with the loss of my husbands job 5 months ago we are now in a situation where unemployment will be running out in 2 months and then our only income will be mine which is 680.00 per month we have 3 children. our house payment is almost 1900.00 alone we have never been late on anything our other bills total monthly payments of about 900.00 per month in credit not counting the cost of just living like food gas and electric total of debt we need to file on counting the house is about 296000 with only a 680.00 income will we qualify for chapter 7 ? and if we own our vehicals will we have to sell them to pay back some of the dept????

jameshogg · Posted: Tue Aug 19, 2008 12:07 am Post subject: RE: section8 voucher may help

Hi Tozzi,

Welcome to forums.

I can understand your situation and I must say it's tough. But at times such things do happen and then all we can do is fight out the situation. Is your husband looking for a part time job or something till he gets a permanent one? With your income, it's impossible to make payments. Moreover, it's going to be tough for you to handle your living expenses. So, why don't you apply for Section8 Voucher housing program? I think it will be a suitable option far you as far as paying your mortgage is concerned.

I feel filing chapter 7 isn't the right solution here because depending upon the state, you may lose your home, vehicle and the like. So, frankly speaking I believe you should enquire about section8 housing vouchers at the office of your State Housing authority.

Know more on Section8 housing vouchers from a previous discussion on this topic.

Thanks

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