QUESTION
Do I qualify to file if I owe $5000 in rent, $2800 in car payments, $2000 in hospital, $1800 for cell phone, $600 in electric and $500 gas bills?
Asked on May 21st, 2017 on Bankruptcy - New Jersey
More details to this question:
Electricity is due to be cut off and I'm sure there's more but can't figure it out now. I also owe back child support.
7 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
Update Your Profile
Usually, I do not recommend bankruptcy for someone who doesn't have more debt than this.
Answered on Aug 09th, 2017 at 9:49 AM
I wouldn't recommend bankruptcy for this amount of debt, but others may say differently depending on your income level.
Answered on Aug 08th, 2017 at 5:40 PM
You really should consult with a bankruptcy atty. you don't list your present income. You have to meet a means test to even qualify for a chapter 7 liquidation. You may need to file a chapter 13 debt consolidation. Anything you have that is a secured debt, such as rent, car, high value assets can be repossessed. It's important you seek legal help ASAP.
Answered on Aug 08th, 2017 at 5:40 PM
Most your debts are dischargeable. Child support is not. There are other issues, but I would recommend you meet with an atty.
Answered on Aug 08th, 2017 at 5:39 PM
Bankruptcy Attorney serving Madison, WI
at
Richard B. Jacobson & Associates, LLC
Update Your Profile
There is no bar you have mentioned which would be an obstacle to your filing bankruptcy. You should be aware that some debts are excluded from the bankruptcy discharge. This is true of student loans (unless you are pretty much disabled). As to the car, there are several ways in which it can be dealt with, depending on your goals. I suggest you located a skilled bankruptcy lawyer in your locality for advice and representation. It's almost always worth the investment.
Answered on Aug 08th, 2017 at 5:39 PM
Real Estate Attorney serving Florence, KY
at
Linda S. Novakov & Associates, PLLC
Update Your Profile
Your ability to file is determined on your income as it relates to the median income in your area; not by the amount of debt you have. If you have income with which to pay your bills, you may only qualify to file for Chapter 13 which is a wage-earner's petition. In this plan, unsecured creditors are paid back a percentage of what they are owed. Chapter 7, if you qualify, will clear most of your debt. Keep in mind child support is not a debt that is dischargeable.
Answered on Aug 08th, 2017 at 5:39 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
Yes, you would qualify, but understand the following: 1. Child Support is not Dischargeable; 2. Landlord can still petition the Court to have you removed unless you are in a Chapter 13 and paying the back the missed rent and staying current; 3. Car company can still request the car be returned or repossess unless in a Chapter 13 and repaying the back charges and staying current and insured; 4. Electric Company and Gas Company may shut off service, unless you file, but then they may request a deposit going forward. All of the above is legal even in bankruptcy. Talk to a professional and make sure you choose the right filing (Chapter 7 or 13) and the consequences of same.
Answered on Aug 08th, 2017 at 5:38 PM