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Considering filing ch 7


reese2720
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My situation: income = 67k/year, total unsecured debt of 45k in CC and personal loans. All with DOLA of 11-2001 (prox.). I am recently married with 2 small kids and one on the way. Currently i cant obtain a decent mortgage or car loan. Wife doesn't work and would not be included in bk. Her credit is decent and will be used once she completes masters degree and obtains employment. My question: my creditors havnt been able to find me in 2,75 to 3.25 years. No harrassment. No payments. No judgements (that i know of). I think that filing the bk is the right thing to do because 1. will be able to obtain credit more quickly (1-2 years). 2. creditors may find me on any given day. 3. Possible judgement in the future out of blue and with the new reform laws i may not be able to file at that future time. Anyways, what do you all think? Is bk the best course of action?

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I am no expert but for what its worth this is the first thing I would do. Check your states SOL, you have close to 4 years under your belt , depending on your state you could be safe from lawsuits. If you have a lot of monthly bills even making 67k a year you may be able to file a ch7 if not you might file a ch13 and still only have to pay back a small percentage of this debt . There are several links to your states SOL on this site. Good luck

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Bankruptcy is a hard decision to make. I have never filed BK and am not an expert, but I have seen what is has done to my sister and her finances - including her mortgage.

As woodwork said, even with 67K a year you might qualify for Ch7... s/he also mentioned ths SOL (statute of limitations). If you are passed the SOL, you might want to consider contacting your creditors and trying to work out pay-for-delete deals. You could offer pennies on the dollar and start from there. Check your state laws first and make sure this doesn't reset the SOL.

I hope it works out for you, and congrats on the new baby :)

Val

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Chapter 7, for the time being, has little to do with your total income, but with your DISPOSABLE income. The new law will incorporate a nasty means test that WILL take total income into account and if you're above the average for your state, you will be forced into a Ch 13 - after they force you to pay for credit counseling.

So, for now, if your disposable income is $100/mo or less (ideally), and you have no non-exempt assets, then you can probably get the Ch 7.

What state are you in ?? It makes a difference for the exemptions available to you and the SOL is something to consider. If you're PAST the SOL, then there is probably no reason to file for bankruptcy and you have other options.

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well i met with att today and all looks well for a chap 7. i think getting the fresh start will be well worth the 7-10 years. from what i have been reading on this board, bk doesnt seem to be the kiss of death that some make it out to be...thanks for the replies and good luck to all of u!!

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