Experience Visit http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint). The Markus webpage also contains more information on
Education/Credentials J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here
Question I have been unemployed for nearly a year now and will be running out of unemployment benefits in about 3 months which will leave me with no income at all and I am single. The prospects of finding a job in my line of work anytime soon is looking pretty grim so I am seriously considering launching another business of my own but that will take at least a year. I make about $960 a month on unemployment and have no residual savings other than my 401k and own no real property. My personal property is limited to my 13 year old car, my clothes and some minor furnishings which really aren't worth anything. My dischargeable debts amount to about $35,000 and are comprised of strictly credit cards and medical expenses. I have never filed bankruptcy before and have spent the last 10 years rebuilding my credit after paying off debts from a business I was forced to close, so it's heartbreaking for me to have to seriously consider bankruptcy now.
Here's what I would like to know.
1. With little income which is on the verge of disappearing can I file directly for a Chapter 7 or do I need to file Chapter 13 first and complete the means test?
2. In the past, filing bankruptcy would usually net you future credit accounts in about 2 years. How do you think filing bankruptcy today will impact my ability to obtain credit to launch a new business within the next year or so and, what sort of long term credit stigma should I anticipate given our recent credit crisis and the new qualifying requirements being imposed?
Thank you for your help.
Answer The "means test" must be completed if you are over the median income in order to determine what you are eligible for. From your facts, it sounds like you would qualify for a Chapter 7 case, but you need to have a comprehensive consult with a bankruptcy attorney in your area to make that determination.
As to your second question, that's very difficult to answer and depends on way too many variables to accurately discuss in this forum. You should have a consultation with an attorney in your area who can better address your concerns, with particularity to your geographic area and facts.
