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Even if your credit cards are maxed out and you have a huge mortgage to pay off, you can still get rid of all your debt in about five to seven years - and begin rapid wealth-building - without sacrificing the things that matter most to you!

3 Responses

1. S P Says:
   February 8th, 2010 at 9:21 pm 1

   He can contact a local bankruptcy attorney, most will see him free the first consultation. They will review his income for the last 6 months, list of his debts, assets, and either 3 or 4 years of taxes, depending on what they want. Once they review all of his information, they will be able to tell him what he qualifies for. You can review more bankruptcy information at Excellent site for information on each chapter of bankrutpcy, how it works and what is required with the new laws. Good Luck!

2. beauty2211 Says:
   February 9th, 2010 at 7:22 am 2

   After you are declared bankrupt your bank accounts will be frozen and you will need to attend an interview to discuss your financial situation and the reasons for your bankruptcy. The insolvency service will want to find out whether you have any assets that can be sold to pay money into your bankruptcy. Also, they will go through your budget to see if you can afford to pay any money from your earnings towards your bankruptcy. All of this detail needs to be discussed with a qualified adviser, but it is worth pointing out one key fact. If you are part of a couple, then the insolvency rules do not apply to your partner, i.e. they cannot insist that your partner pays anything towards mortgage/rent or utility bills etc. This is very important since if you fill in the forms showing that you pay half of the mortgage/rent this may result in you having a monthly excess. If so, you will be ordered to pay some of this money to your creditors for up to 3 years (continuing after your bankruptcy is discharged). If you don’t have any excess then you will be relieved of any responsibility for paying your creditors when you are discharged, which could be after only 6 months but certainly within a year.

3. poorlady Says:
   February 9th, 2010 at 1:49 pm 3

   We just went through chapter 7. We could choose what we wanted to keep paying on and what we wanted dismissed. We chose to keep our home and one of our vehicles and to dismiss our credit card debts and our truck. The lawyer told us to stop paying our bills and that was how we could afford his fees…I guess it worked out ok. It sounds like his income is very low but if he chooses to he can surrender or sell posessions in order to pay off a creditor but he doesn’t have to. I doubt he will loose his furniture unless he has an overabundance of it or it is priceless antiques. Our laywer went through a budget with us and tweaked it so we had no money left (on paper) to pay off creditors. We went through a lot of looking up paperwork and humiliation such as “xxx store might want their tv and computer back that you just bought” and “we are going to dump you” (the bank) and that we would have to face our creditors in court. We went to court and our lawyer wasn’t even there. He sent someone in his place. This replacement still advised us that the “xxx store”might repo our new tv and computer” So we went into court and not one creditor was there. No one has come to take our tv (it was in August) or even other larger recreation items that we couldn’t pay on. The bank has not sent a letter saying we are dismissed from being a customer and we even added a second bank just in case and they have not said anything either. After court we decided to give up our car after all. It’s called rescinding. So we did that and the bank we got it through said if we get a discharge (the bankruptcy goes through) we will not have to pay the difference once the bank sells it. You will be protected that way. Only the bank repo people have not come to get it yet so we are puzzled. Anyway, we got our discharge papers 2 months after court. I always read it took 6 months. It all went without a hitch, really, just a lot of confusion as I feel our lawyer wasn’t that informative. Oh yes your dad will have to pay to take credit counseling too. You cannot dismiss bills such as medical, iou’s to people, utilities, etc. They have to be a credit company.

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