I have questions about bankruptcy, How much money do you need to be in debt with before you can file? Does it?

get rid of everything like medical bills, old bills, student loans, and does it really take 7 years to have good credit again or what happens in 7 years?


How expensive is it to file?


Does someone get all the info for you or do you have to find out who you owe? Can you file as a married couple for both of our debt?


Is it really a bad thing to do in life? Or is it worse to owe and have everything written off?

I have questions about bankruptcy, How much money do you need to be in debt with before you can file? Does it?
You ask a lot of questions....and got a hodge-podge of answers. It's not easy to cover all this in a short space.





Let me tell you what I tell many other people considering bankruptcy.





It doesn't really matter how much you owe. The key is how long it's going to take to pay off these debts.





Lets pretend.





Lets say you managed to contact all of your creditors, and they agree to lower your balance and freeze your interest and late fees.





Then you sit down and create a very serious budget. Cut out all entertainment, kill the CATV and cell phone. No more dining out or Starbucks. You find out exactly how much you can afford to pay each month on these debts.





Then you somehow manage to convince your creditors to accept monthly payments that fit within this amount. And you can get all of these debts paid off in 5 years.





Assuming all of these fairy tails, can you do it?





If not, then you need to seriously consider bankruptcy. The above is exactly the same, but the court will force all of these things on you and the creditors. In 3-5 years you will be debt free.





Your credit score will suck for a couple of years, but if you plan this correctly you can have decent credit within 3 years.





I'm working with a Chapter 13 person now. They filed 2 years ago....did everything right, and have a 695 credit score (good, not great). And they still have 3 years left on their plan.





So these people who say it destroys your credit simply don't know what they are talking about, or didn't do their homework.





If you plan to do this, consult with a good BK attorney.
Reply:You are grasping for answers but you don't know the questions. So, here they are: What debts do you owe and to whom? What is your monthly income? What amount do you budget each month for fixed and variable expenses? What amounts do you set aside each month for unexpected expenses? Why is bankruptcy a solution? What other alternatives have you considered? What is your plan?
Reply:You can NOT get rid of student loans thru a bankruptcy - not allowed - you MUST pay them back -





It might cost $2-3000 to file - see a lawyer - you might be forced to file a chap 13 bankruptcy which would require repayment of most of the debt as opposed to a chapter 7, which would wipe out all debt (except student loans, taxes)
Reply:There is no amount to big or to small. Don't worry about medical bills, they can't do nothing to you. It does cost alot of money to file but it depends on the lawyer and where you live. If you are married then you have to file married. But doesn't always affect the other person. I would try to get up all your bills and start saving up money and after a while start paying off one at a time. or just pay something every month.
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Reply:Before you do a BK you should look into Debt consolidation. It can lower your payments by as much as 60%,
Reply:It's not the level of debt that's the main criteria for filing Chapter 7...it's your income level. The Bankruptcy Reform Act of 2005 specifies that you must pass a "means" test to file for Chapter 7....this generally means that your income must be below the average for your state.





If you qualify to file, it would discharge most debts except: student loans, back taxes and back child support payments....





Filing for Chapter 7 does not destroy your credit history for all time......Your credit will take a big hit for about two years...after that time period has passed, granted you stay out of trouble, you'll start to see your credit get better. You can only file for Chapter 7 once every eight years....so if you find yourself in a worse financial place two years after filing....you won't be able to discharge your debts again for six years. If you do file....make sure that you and all your dependents are fully covered with health insurance...there's nothing worse that having an expensive, uninsured medical emergency after filing for Chapter 7





Almost all BK attorneys give free consultations...there's no harm in calling. Lastly, don't let anyone guilt-trip you for making the decision to file for BK. Do what's best for your family. Corporate America uses BK all the time without any such guilt trips.....