Home Equity Loan

Can anyone tell me about bankruptcy or refer me to a website that is educational on the different types of BK?

and how to go about doing it?? And what the repurcussions (sp?) are?? I am about $100k in debt.. Between a student loan, car loan and various credit cards.. I am starting to think this is my only way out because I work under the table and can't get a home equity loan.. How much do BK's cost anyhow?? I am in California.. Thanx.... i'm 21 yrs old.. still young enough to declare & bounce back.. do you HAVE to have a lawyer do it for you??

Public Comments

1. No YOU can be your own lawer. It isn't hard you just have to file the correct paperwork when the court tells you too. I process bankrupcies all day where the consumer is acting as their own attorney. In general, Attorney's fees for Chapter 7 Bankruptcy start at $900 for a single filer, but most are around $1,000 for a married couple, plus a filing fee of $299 paid to the U.S. Bankruptcy Court in the form of a U.S. Postal Money Order. But the most important question is how much will bankruptcy cost if you DON'T use an experienced bankruptcy practitioner The New Bankruptcy Law Here are some of the major changes you should know about. Now that the new bankruptcy law is in effect, the landscape has changed for those who are considering bankruptcy. Some filers with higher incomes won't be allowed to use Chapter 7, but will instead have to repay at least some of their debt under Chapter 13. All debtors will have to get credit counseling before they can file a bankruptcy case -- and additional counseling on budgeting and debt management before their debts can be wiped out. And, because the law imposes new requirements on lawyers, it may be tougher to find an attorney to represent you in a bankruptcy case. Here are some of the most important changes. Restricted Eligibility for Chapter 7 Under the old rules, most filers could choose the type of bankruptcy that seemed best for them -- and most chose Chapter 7 (liquidation) over Chapter 13 (repayment). The new law will prohibit some filers with higher incomes from using Chapter 7. How High is Your Income? Under the new rules, the first step in figuring out whether you can file for Chapter 7 is to measure your "current monthly income" against the median income for a household of your size in your state. If your income is less than or equal to the median, you can file for Chapter 7. If it is more than the median, however, you must pass "the means test" -- another requirement of the new law -- in order to file for Chapter 7. The Means Test The purpose of the means test is to figure out whether you have enough disposable income, after subtracting certain allowed expenses and required debt payments, to make payments on a Chapter 13 plan. To find out whether you pass the means test, you subtract certain allowed expenses and debt payments from your current monthly income. If the income that's left over after these calculations is below a certain amount, you can file for Chapter 7. But each county in Cali has a different variation to this law.
2. There are a lot of sites out there that will go over this, however you can probably get all of your questions answered by talking to a few lawyers. Most will give you a free consulation and help you with your exact situation. There are 2 main types of Bankruptcies. Chapter 7 is basically liquidation. This is where all of your debts are erased. However, the government has made it much more complicated to even file for a chapter 7. First you have to pass 2 means tests. One is if you earn more than the average income for your state, for CA this will be a fairly high number so it might work to your advantage. The second is if you have enough disposable income to pay back all or part of your debt in 3-5 years. If you fail on either of these you will probably be forced into a Chapter 13. This is a Re-payment bankruptcy. Here you will make set payments over a period of time. Then at the end of this time your remaining debt is erased. A couple of other points to consider. 1. Student Loans are not dischargeable in a Bankrutpcy. This means that even after the bankruptcy you will still owe on them. 2. Since you work "under the table", coming out in the open may cause problems because you have to declare all of your income. The Trustee's are pretty good about detecting things like this and when they review your case you may have some serious questions to answer. The last thing you want to do is lie about any income you make on your bankruptcy filing. If the income does not match your tax returns and neither seem to match your spending you will have problems. As for the cost you can expect anywhere in the $1800-$3000 range depending on how complicated and which bankruptcy you file for. You can do it yourself, but to do so you have to be very detail oriented. If you miss a step or do not file something correctly you could be subject to having your bankruptcy dismissed.
3. Increasing number people are filing for bankruptcy to get out of debt. But, what is bankruptcy? Do you know enough of it? How does it help you? If these questions also bother you, the following 7 most important things about bankruptcy will help you get an answer. 1. Bankruptcy is process adopted by federal court process catering to individuals and businesses repay their debts or clear their debts under the protection of bankruptcy court. Also known as "reorganizations " or "liquidations", bankruptcy is often the last recourse to get out of any debt. 2. When the property of the debtor is sold to recover and pay off the debt it is called Chapter 7 bankruptcy. Contrary to popular belief, all the property owned by a debtor is not sold, some part of it is left with him to allow him to start afresh. 3. When there is no sale of property but the debt are reorganized so as the debtors, are able to repay them over a long period it is called Chapter 13 bankruptcy. 4. Both these types of bankruptcy have a large number of rules, and exceptions, suited to different kind of debts, individuals and other concerns. 5. The "ticket in" is counseling session that everyone who wishes to file a bankruptcy must attend. This session must be attended at least six months prior to filing for bankruptcy. This term was adopted in the new bankruptcy law. 6. The "ticket out" means to attend a financial education class from listed agencies before getting approved for bankruptcy. This was also adopted by new law. During this session the the court will also determine according to predetermined standards by IRS that what all is required for food, clothing, shelter etc. and what all can be used to recover debts. Read more about bankruptcy at: http://www.credit-card-gallery.com/bankruptcy_credit_card.html
4. Filing Chapter 7 in california with a decent attorney will cost no less than $1800 (I payed $2k). Further, there are a lot of predatory attorneys to watch out for in your search. Filing Pro Se Chapter 7 (By yourself), is your right and the only costs are paperwork and filing. One issue with Pro Se is that you have to send paperwork to all creditors, file with the court, complete schedules, and is pain; but possible and many do it. Remember whomever you go Chapter 7 on will never, in most circumstances, extend you credit again, keep that in mind. I would suggest working out a payment agreement with creditors for positive reporting, but where you would only pay a percentage of the credit card debt. Student loans are not covered in bankruptcy due to previous abuse, and for a car loan there are other options. The best credit resource on the net I've found is "creditboards", just reading the information literally gave me options I didn't know existed. Either way is an uphill battle. Whatever you choose, good luck and I wish you the best!