Expert: Terry Leeders - 6/21/2007

Question
My income is about 45,000 my debt is 60,000 I am meeting next week with an atty and am to pay 250 non refundable and am under the impression it will be the full bankrupsty. They tell you everything you need to bring in and they supposedly just process it. Because this is my first meeting I'm not sure with the new laws I'll be able to file a full bankrupsty. They said with that amount of debt they didn't know why it wouldn't go through. I think I want to try to keep my car and owe 17,000 on it although it's only worth 9,000 so how would that work? I'm thinking I might have to turn the car in because without it my debt is at 43,000 and obvioulsy with my credit gone bad, really bad I need to figure out the best way to go and still have a means of getting to and from work. What are some of my options relating to the car and would I qualify for a full bankruptsy? I have also been on short term disability and now just rolled into longterm disability, so a paycut now earning 60% but will be back at full pay in 3 weeks. Any info is appreciated.


Answer
Your attorney will analyze your income and allowable deductions to compute your 'means test' to determine your eligibility for chapter 7 bankruptcy.  If you are below the threshold income for your family size, and you spend all your monthly income on your normal necessities, then you meet the first step to qualify for the chapter 7 bankruptcy.  Have the attorney give you the median income threshold figures, as it varies based on where you live.  Best of luck