More details to this question:
We bring in around $6K per month but, we have a $2100 mortgage, $27k in credit card debt and we owe the IRS $6k that we are paying $400 a month on. We have just received a legal notice from court that one of the cards is going after a judgment. We tried a debt settlement firm but that turns out to just be another expense. What can we do?
14 ANSWERS
I will help you to evaluate all of your options, including Chapter 7, Chapter 13, debt settlement and doing nothing.
Answered on Jul 11th, 2013 at 9:55 PM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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It depends upon satisfying the means test and various factors such as how many people in the household and other expenses.
Answered on Jul 25th, 2011 at 12:17 PM
Samuel Lee Tucker
Unless you have a very large family you probably will have to file a Ch 13 . The debt settlement process generally dies not work out in your best interest.
Answered on Jul 25th, 2011 at 5:15 AM
Family Law Attorney serving Bellevue, WA
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Dearbonn Law Offices PLLC
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Negotiate with the attorneys representing the credit card company for a reasonable sum. If acceptable, the case may be dismissed.
Answered on Jul 24th, 2011 at 3:08 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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One option when you owe debts you cannot afford to pay in full is to file chapter 13. A payment plan can be porposed for a period of 3-5 years. You can keep your assets.
Answered on Jul 24th, 2011 at 2:36 PM
You can be helped and your situation can be fixed by a Bankruptcy Attorney.
Answered on Jul 24th, 2011 at 1:52 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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You need to do the means test to determine if you are eligible to file a Chapter 7 case. If not, then you can file a Chapter 13 case and will have to pay in a Chapter 13 plan for five years whatever disposable monthly income you have after the allowed deductions from gross monthly income. That Chapter 13 plan payment will include your IRS debt. Whatever is not paid in the Plan will be discharged.
Answered on Jul 24th, 2011 at 1:44 PM
Trusts and Estates Attorney serving Jacksonville, FL
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Law Office of David M. Goldman PLLC
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Depending on the other expenses and how many children you have (if any) a bankruptcy lawyer can run some financial tests to see which types of bankruptcy you can qualify for.
Answered on Jul 24th, 2011 at 1:40 PM
Criminal Defense Attorney serving Las Vegas, NV
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Advanced Litigation Services, Inc.
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File a Chapter 7 bankruptcy.You will eliminate your credit card debt.The IRS debt is not dis chargeable.The collection and judgment will stop.
Answered on Jul 23rd, 2011 at 8:43 AM
Glen Edward Ashman
Debt settlement firms are mostly scams. Many are criminal. Stay away from them! Do NOT use one. Even the few legitimate ones are usually bad news. You do not want to wait for a judgment as that will allow garnishments (and a lien on your home). That means you have an emergency and must act within 30 days of service of the suit. You may have options under bankruptcy (Chapter 7 or 13) to eliminate or reduce debts. See a bankruptcy lawyer quickly to run the numbers.
Answered on Jul 23rd, 2011 at 8:01 AM
Karla Lehn
Depending on the size of your family and other financial factors you may be eligible to file a chapter 7 bankruptcy and discharge the credit card debt. Bankruptcy stops all collections and judgments
Answered on Jul 23rd, 2011 at 8:01 AM
Family Law Attorney serving Indio, CA
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Law Office of Xochitl A. Quezada
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You need to speak with an attorney to run a means test for you to determine whether you are eligible for bankruptcy and if so, what chapter.
Answered on Jul 23rd, 2011 at 8:00 AM
It sounds like bankruptcy relief might be a good solution for you to get things under control. You should consult local legal counsel.
Answered on Jul 23rd, 2011 at 7:10 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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You're right about the debt settlement places- they cost money and do nothing. You can file bankruptcy, which will stop the suit. And if your taxes are old enough you can discharge them, too.
Answered on Jul 23rd, 2011 at 6:38 AM