Creditors and Bankruptcy/filing bankruptcy

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Expert: Michael Brotherton - 2/9/2009


Question
I was laid off from a job and my new job pays about 15,000 less. I have significant debt and I am finding it difficult to pay bills. I have used all my savings to keep current but now find that I will begin not being able to meet my obligations. Should I file before I begin getting behind? I am afraid I will lose my car,2003Honda Civic worth about 9,000. My home,which is current with the downturn may have 40,000 in equity. I have 75,000 in unsecured debt. My income is about 62,000 per year. I don't know whether I should claim 7 or 13. Would I be able to pay back even a portion if I file chap 13? This is a very serious and scary decision. I have tried for years to keep good credit but the situation has become impossible.

Answer
If you have a lot of equity (over $5k) you may not be able to file Ch7 without liquidating your home to pay creditors. You would probably have to file 13. You would need to consult an attorney and take the means test and see which options you have. I recommend talking to at least two experienced bk attorneys. Each will have differeing opinions but it can help you make a decisions.

If you file ch 13 you would probably pay a small percentage of the unsecured debts and pay secured debts such as your home, car etc. thru the plan. You may also opt to leave these out f your plan as well.

You may some other options so it may be to your benefit to talk to a consumer debt counseling service first. I can help you complete an assessment to see if you have any valid options. If you need help call me 937 372 8581.

Creditors and Bankruptcy

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Michael Brotherton

Expertise

Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. We are well versed in Loss Mitigation practices and the legal collection process. We have helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. We actively promote Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).

Experience

28 years in financial services industry as a loan officer and debt collctor. Developed bankruptcy and loss prevention manual for large finance company for manager training. 15 years as a debt counselor and consumer advocate.

Education/Credentials
Veterans sponsored OJT Manager Candidate Scool for AVCO Financial Services, Keystones to Management for ITT Financial Services, Certified Finance Management for Associates Financial Services.

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