Re: need help quick

Posted by Drew (24.59.25.2) on July 27, 2004 at 11:45:55:

In Reply to: need help quick posted by found this on July 27, 2004 at 01:20:20:

The criteria is this. If you have more debt than you have income coming in. If you add up all your expenses and all the required minimum payments for your bills per month and then compare it to your actual income and you come up with more debt than income, you are considered insolvent and are able to file bankruptcy. So it doesn't matter how much you make, but what the debt/income ratio is.

There are also two kinds of bankruptcy. Chapter 7 is where you are insolvent (more debt than income) and you can't pay anymore. Chapter 13? is where you have the means to pay some of the debt back. If your income is good enough they might put you on a repayment plan where you will pay all of your creditors a portion of the debts (usually 25-50% of the debt) over a three to five year period. This bankruptcy plan is administered by the court and you have to pay the amount always on time. Once the terms are agreed, the remainder of the debt is discharged.

So there are two types of bankruptcy and depending on your income and your debt factor, you may not qualify for Chapter 7, but you may qualify for the other one.

Good luck.

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