Considering Bankruptcy - Questions

[Shana]

I am hoping to get some advice as I am really confused at this time.
Currently, I am considering claiming Bankruptcy but I haven't made the
full commitment of calling a lawyer yet. I have spent a lot of time
reading Maine laws on bankruptcy and various web sites pertaining to
bankruptcy, but I feel overwhelmed. Hopefully, someone can help me
out.

My husband and I have about $25k in old debt. Only $2200 of which is
credit card debt (Sears), $10k in auto loan, $5k in old college loans
(from 1993-originally they were 'written off' and sent to a collection
agency, but I have been paying on them faithfully for the last two
years), and the remainder - various doctors bills, old utility bills,
etc. - that were accrued when we were both laid off from our jobs a
few years ago. As my husband is the only one working right now, we
have more bills than we have income. A lot more.

Here are my questions - firstly, with the above info, does it seem
worth it to claim bankruptcy? Secondly, would we be awarded the car
or what happens in terms of the car? And lastly, since I'm not even
sure if I am asking the right questions, is there any advice that
anyone can give me? Thank you so much.

 

[Joe]

I am hoping to get some advice as I am really confused at this time.
Currently, I am considering claiming Bankruptcy but I haven't made the
full commitment of calling a lawyer yet. I have spent a lot of time
reading Maine laws on bankruptcy and various web sites pertaining to
bankruptcy, but I feel overwhelmed. Hopefully, someone can help me
out.

My husband and I have about $25k in old debt. Only $2200 of which is
credit card debt (Sears), $10k in auto loan, $5k in old college loans
(from 1993-originally they were 'written off' and sent to a collection
agency, but I have been paying on them faithfully for the last two
years), and the remainder - various doctors bills, old utility bills,
etc. - that were accrued when we were both laid off from our jobs a
few years ago. As my husband is the only one working right now, we
have more bills than we have income. A lot more.

Here are my questions - firstly, with the above info, does it seem
worth it to claim bankruptcy? Secondly, would we be awarded the car
or what happens in terms of the car? And lastly, since I'm not even
sure if I am asking the right questions, is there any advice that
anyone can give me? Thank you so much.

I tried to send a reply last night but the system crapped out and I
lost it. So here is a summary: Call a bunch of laywers and ask them
questions on the phone. Then set up free consultations with at least
several of them. By the time you are done you will have most of your
questions answered.

Calling a lawyer is not a committment, full or otherwise. Perhaps that
isnt what you meant, but you have a right and a responsibilty to
yourself to shop around and get the best lawyer for you. Lastly, do
not ask the lawyers if you should file, I can tell you right now they
will all say yes! That is something you'll have to decide on your own,
after educating yourself a little more. Can you pay off your debt in a
few years? If not then BK may be the way to go.

I probably called 10 local bankruptcy attorneys, and I had personal
consultations with 4 in March. I finally decided which one of them to
use today, but I couldnt have done it without shopping around with my
(many ) questions.

 

[Lilly]

If you want to keep the car, you'll have to keep up payments. The
college loans may not be dischargeable depending upon who issued them.
So, you'd be bk'ing on 2200 in CC debt and those misc. bills.
Without more info, it doesn't look like it would be worth the hit on
your credit and your record to bk for such a small sum.

If you decide to give up the car, you can just turn it over and not
owe any loan deficiencies if you bk. However, if the car is worth
more than 10k you can sell it to pay off the loan if you don't need
the car. Either way, you're either going to have to either keep
paying the loan or lose the car.

Go see a couple lawyers and see exactly which bills would be
discharged, and add 'em up before you make your decision. But
truthfully, even if the full 15k was dischargeable (not counting the
car) in my opinion, it's not worth bk'ing on unless you're being sued.
Good luck.