QUESTION
Would chapter 7 bankruptcy be the best answer for a $20,000 unsecured debt?
Asked on Aug 27th, 2012 on Bankruptcy - Missouri
More details to this question:
A law group told me that they could write off/erase debt. Is it true?
18 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Obviously you were concerned about the honesty of this statement. You have every right to be. Debts are rarely "written off" without continuing consequences to the borrower. Ask this law firm about the tax consequences of the forgiveness of this debt. If they just dismiss your question then run, do not walk, out of their office. The only exception to that rule is bankruptcy. But, you must understand that bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Sep 05th, 2012 at 11:22 PM
I do believe a Chapter 7 could be an excellent option- contact a good experienced consumer bankruptcy attorney for a free interview. Be sure to check around on the fees being charged- they can vary greatly and you can be easily be overcharged for the exact same services rendered much less expensively elsewhere.
Answered on Sep 05th, 2012 at 4:12 PM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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If you qualify for a chapter 7 bankruptcy, it is possible to eliminate your debts through a discharge. You would need to go through the bankruptcy process in order to do so, including filling out and filing the petition correctly, attending a trustee meeting, and possibly reaffirming debts on any collateral that you want to keep.
Answered on Sep 05th, 2012 at 12:27 PM
Civil Litigation Attorney serving Visalia, CA
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Sullivan & Sullivan
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It depends on if you meet the other qualifications for Bankruptcy. Your attorney will need to know more about your financial position.
Answered on Sep 05th, 2012 at 10:21 AM
Bankruptcy Law Attorney serving Campbell, CA
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Ellahie Law Firm
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Probably: But also depends on how the debt was incurred, whether additional debts are expected and on what assets do you have i.e. are they all exempt and protected from the Trustee.
Answered on Sep 05th, 2012 at 10:15 AM
Chapter 7 Bankruptcy Attorney serving San Francisco, CA
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Bertrand, Fox & Elliot
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Chapter 7 can wipe out unsecured debts. It sounds like an ideal option for you. The law group may have been referring to a debt settlement. You should consult an experienced BK attorney to see if you qualify for Chapter 7.
Answered on Sep 04th, 2012 at 9:56 PM
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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Bankruptcy would certainly be a possibility to discharge the debt. I suggest you consult with a bankruptcy attorney to discuss the details of your specific situation.
Answered on Sep 04th, 2012 at 8:47 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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You should consult a bankruptcy attorney to review your situation. Be careful of so-called debt management companies or others who claim they can eliminate your debt without filling bankruptcy.
Answered on Sep 04th, 2012 at 8:23 PM
Law groups can not erase debts. Bankruptcy can discharge (wipe out) dischargeable debts. Whether or not bankruptcy is right for you requires an analysis not only of your debts, but also of your assets, income and expenses.
Answered on Aug 30th, 2012 at 6:46 PM
Bankruptcy Attorney serving Grand Rapids, MI
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David Andersen & Associates, PC
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Chapter 7 may be the best option for you depending on your situation. A chapter 7 bankruptcy would discharge the debt and you would no longer be responsible.
Answered on Aug 30th, 2012 at 6:45 PM
Daniel James Wilson
Be careful about what a "law group" promises. Whether to file a Ch 7 or a Ch 13 is a complicated analysis. See a good BK attorney.
Answered on Aug 30th, 2012 at 6:45 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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It is not quite that simple. You have to qualify to file chapter 7. Take the online means test calculator.
Answered on Aug 30th, 2012 at 6:45 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Usually yes, but there are other factors to look at as well.
Answered on Aug 30th, 2012 at 6:44 PM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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Depends on many factors. If you qualify for a Chapter 7 under the MEANS TEST, then you can file a Chapter 7; however, if your income poses a "presumption of abuse" under Chapter 7, then you'd have to file a Chapter 13. And, filing a Chapter 13 would require "disposable monthly income" so that a plan could even be confirmed.
Answered on Aug 30th, 2012 at 6:43 PM
Probate and Estate Planning Attorney serving Harrison, MI
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David T. McAndrew, Attorney at Law
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It is really impossible to answer this question without other relevant information. Such as, what is the income of the debtor, what other assets might the debtor possess that exceed the permissible exemptions, that might be subject to claim by the creditors. Without a full analysis of the debtor's financial situation, an attorney would be remiss to answer this question.
Answered on Aug 30th, 2012 at 6:43 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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It is possible. It depends on your income, which I assume they analyzed.
Answered on Aug 30th, 2012 at 2:10 PM
3 Awards
You may be able to settle your debt for a relatively small percentage of what you owe, but you will need a lump sum of cash to do so. If you do not have significant cash on hand, perhaps 6K-8K, a Chapter 7 bankruptcy may be a better option for you.
Answered on Aug 30th, 2012 at 2:06 PM