Should I file for bankruptcy, and can I get some general information about it?

1. There is no set amount of debt for filing BK. I ask clients this question: Is there a reasonable chance you will be able to pay off this debt within.

Your question requires an answer that would be much too long for this service. Please contact a bankruptcy lawyer. Avoid petition preparers as they cannot legally answer your questions.

Most attorneys including myself offer a free initial consultation. I suggest you take advantage of it. Your questions are too numerous and without sufficient detail that needs a dialogue.

There is no minimum amount of debt that must be owed to qualify for bankruptcy. However, one should consider whether it is worth having bankruptcy on one's credit report for 10 years. A judgment also stays on the record for 10 years and it can be renewed for an additional 10 years. One a creditor receives a judgment they can use all the enforcement options available under state law. The most typical ways judgment creditors enforce their debt is wage garnishment and levies on bank accounts. Persona assets, such as household goods are exempt. There is also an exemption for about $3000 in equity in a vehicle. If your vehicle is worth a lot of money beyond the exemption some creditors may choose to levy and sell the vehicle. The lender must be paid in full as well as your exemption. You get the exempt amount and the creditor gets the excess. If there is no excess there will be no sale of the vehicle. Generally, judgment creditors don't exercise their right to sell vehicles, particularly when their is a lender that has a lien on it. Not all debts are discharged in bankruptcy. Some of these debts include most taxes, student loans and child and spousal support. If you are file a bankruptcy there is no amount paid to creditors if there are not non-exempt assets in the bankruptcy estate. You can do a payment plan in chapter 13 if you have regular income and meet other requirements. Consult with a lawyer to discuss the specific facts of your case.

The questions you have raised, are topics that are generally covered during an initial consultation. Most attorneys, including myself, offer a free initial consultation to discuss how bankruptcy works and what benefits and burdens it provides. Given how many questions you have, I really think you need to meet with a bankruptcy attorney, a lot of the answers to your questions depend upon financial information that an attorney would need to review prior to answering. On a general basis, if you are eligible for chapter 7, most debts you owe will be discharged and you will not have to pay any money to your creditors. When you file for bankruptcy in Nevada, an attorney will apply exemptions based on state law to your property, such as your car, your household belongings, your computer, etc., and you will be able to keep all exempt property through the bankruptcy. With regard to your concern about a judgment. If you are not working and do not own any real estate, you may be "judgment proof", which means there is nothing that the creditor can take from you, lien against or garnish in order to collect on the judgment. Most often, creditors obtain judgments and will either file a lien against real estate, or seek a garnishment order to take up to 25% of your net wages. Since you indicate that you are still in college, there isn't much that the creditor could do at this point, but you do need to consider clearing up your debt situation before you begin working. There may be a way for you to negotiate with the one creditor to avoid a judgment and to avoid filing bankruptcy, you should meet with a qualified bankruptcy attorney who can fully assess your individual situation in order and advise you on your options.

Filing bankruptcy is a Major step and should not be undertaken without thought and counsel. I would suggest not undertaking it unless absolutely necessary, yes it should cause you to be making installment payments and living on a government approved budget for years. As for amount, in my estimation the amounts you are speaking to are insufficient. You are generally not allowed to to play the card again for ten years. I recommend engaging an attorney to help you reach agreements with your creditors to all you to work this our short of bankruptcy.

Some of your answer depends on whether you file a chapter 7 or 13. You can probably protect your property with the exemptions provided for you by California law. You get to claim about $22,000 plus some specific additional objections. You can combine two or more to protect your property. You only have to protect the equity in the property. There may be no equity in your car because of your loan balance versus its estimated sale price may be zero or less. You only have to pay some creditors if you file a chapter 13 as a wage earner. You must earn over $44,900.00 per year now before the court will force you to file a chapter 13.

There are asset and income requirements to qualify for bankruptcy. It sounds like you may qualify. The bigger issue is: why file? You will be wiping out a small amount of debt and damaging your credit score for a long time. In addition, some jobs, like bank teller, cannot be had by persons who have filed a bankruptcy. The better strategy is probably to get the job and then negotiate a settlement with this one creditor.

You can file for bankruptcy regardless of the amount of debt you have. A credit card is generally not a secured debt so they cannot come after your property if they obtain a judgment against you. However, they can attempt to garnish your wages or bank account. If you file for bankruptcy generally all of your unsecured debts (such as credit cards and medical bills) will be discharged except for student loans, some tax liens and domestic support obligations. Whether you have to pay anything to your creditors after filing bankruptcy depends on what chapter you file. Chapter 7 discharges your debts without any repayment, while Chapter 13 involves a 3-5 year repayment plan. Generally when filing for bankruptcy most of your assets are exempt. I suggest you talk with a bankruptcy attorney to discuss the specific details of your situation.

Yes, some people file bankruptcy over relatively small debt as compared to others. A creditor with a judgment would have to pay the sheriff a cost prohibitive sum in order to seize property. Bankruptcy will discharge all debt, with the exception of student loans and income taxes within the last 3 years, and some other debts. The cannot come get anything from you when you file bankruptcy, a federal automatic stay goes into effect when you file and creditors cannot proceed with any state court action or file suit, without getting approval from the bankruptcy judge.

Try to payoff your creditors. If a judgment is rendered against you then yes your possessions are subject to attachment.