I would like to know the process of possibly filing chapter 7 bankruptcy. My yearly income is 38K and my total debts is $50,000. $27,000 car loan is included in the total amount owed at 50K. The other debt is credit cards. I plan to return the car this year.
I would like to know if I would qualify for chapter 7- my FICO is 576
Thanks in advance.
Bankruptcy is a very complicated process. Please take time to educate yourself about bankruptcy before jumping into the unknown. As part of your education watch the Bankruptcy Court videos (link below) which explain the bankruptcy players and how bankruptcy works. Important - do not assume the information you see on the Internet is accurate or applies in your situation.
Most Arizona consumer bankruptcy attorneys offer a free consultation about the basics of bankruptcy. Please take time to educate yourself and to determine which attorney is the best to assist you in the process. It is best to interview two or three attorneys before making a decision who to hire. Talk to the attorney you will be working with, not a staff person. When interviewing the attorney ask how long they have practiced bankruptcy law. Ask what percentage of their practice is focused on consumer work. Ask whether they are experienced in both chapter 7 and chapter 13 cases. Ask about their policy of returning phone calls. Ask the attorney for references. Don’t assume the attorney is being honest about their experience and capabilities. If, after talking with them you are still confused about the issues you raised, find another attorney. Check them out with the various ranking sources: such as www.AVVO.com, and the State Bar (make sure they do not have complaints), also look at their on-line reviews.
Any good bankruptcy attorney should be committed to answering specific questions about your situation and help you understand your options. At all times remember this is your bankruptcy and you should understand what is happening. The attorney should educate you, be there to assist you in how to avoid pitfalls and help you plan for your future after bankruptcy. In other words, they should be your guide through this process. There are hundreds of “bankruptcy” attorneys in Arizona. Of those just a few will fit the criteria set forth above.
I hope this information is helpful.
Diane L. Drain, Law Office of D.L. Drain, P.A. Phoenix, Arizona. This firm is in the business of helping people and companies file for bankruptcy protection. Therefore, the bankruptcy code requires that we call our firm a "debt relief agency." This information is provided for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the related issues. Nor is this advice intended to create a client - attorney relationship. Every individual's factual situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state or locality regarding your specific situation.
Ms. Drain is correct-bankruptcy is a complicated. An attorney cannot just look at your post and say whether or not you qualify-or what the downsides of filing would be even if you do qualify. Many debtors that try and use discount attorneys or document preparers to file a bankruptcy find out after filing that they will be losing assets important to them. Most attorneys will give you a free initial consultation. You should make an appointment to see an experienced bankruptcy attorney who can look at your individual situation, and advise you of all of your options, both bankruptcy and non-bankruptcy.
It sounds like bankruptcy could be quite beneficial to you. It is a complicated matter. I recommend that you seek a consultation with a local bankruptcy attorney.
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