Filing Bankruptcy With No Money
Posted on October 27, 2009 at 2:46 am
Tell me, how does it work - filing bankruptcy with no money. Somebody just got discharged and that somebody (man who live across the street, I don't know him personally) does not have a job. Nothing. How was it possible for him? I am interested because aren't there supposed to be fees?
Posted on October 27, 2009 at 2:55 am
Tell me, how does it work -
filing bankruptcy with no money.Hi, under the new bankruptcy law (2005) a consumer has to pass the Means Test to qualify for a Chapter 7 bankruptcy. It is a state income test. If the consumer fails this, he/she would be forced to file Chapter 13 instead. It is a repayment bankruptcy.
Under the new law, a consumer would also have to undergo a pre-filing credit counseling under a court approved agency. If the consumer can't afford it he/she can apply for a Court Filing Fee Waiver--but he/she has to qualify for it. A letter would be sent by the court with regards to whether or not the consumer qualified. If he/she did not qualify the court might sent another form so the consumer can apply to pay for the court filing fee in installments.
Posted on October 27, 2009 at 3:13 am
Tell me, how does it work -
filing bankruptcy with no money.Also, with Chapter 13, if you really can't afford to finish the repayment plan, there is such a thing as a hardship discharge. A typical Chapter 13 bankruptcy lasts for 3-5 years and if for example you were able to pay for 2 years and had to stop for whatever reason all you have to do is provide proof of the hardship--because just like the filing fee waiver you would also have to qualify for a hardship discharge.
Posted on October 27, 2009 at 3:18 am
Question though, why are you filing bankruptcy with no money--or why are you filing bankruptcy?
Posted on October 27, 2009 at 3:22 am
I see...thanks for the replies.
And I am deep in credit card debt, I am paying the minimum...at least, I was, I'm behind on some and well. I'm tired. I can't allot my income to this forever. It's just not fair. I think bankruptcy can wipe my slate clean that's all.
Posted on October 27, 2009 at 3:36 am
Well, you don't have to file bankruptcy for credit card debts -- especially if they amount to more than $10,000 all in all. Why not try debt settlement? If you're accounts are past due with that balance, you are qualified for the program. With debt settlement, your monthly payments will be reduced and your balance would have a chance to be also be reduced to more or less half.
Posted on October 27, 2009 at 3:37 am
Okay...I'm interested but how much would debt settlement cost me? How long would I have to be in it? Why is it better than bankruptcy?
Posted on October 27, 2009 at 3:41 am
Filing bankruptcy with no money:- how much would debt settlement cost me?
Debt settlement companies will usually charge 15% of the total debt amount and spread the fees out over 18 months. Or, they will take a percentage of the settlement amount, usually between 20-25%.
ex: for a $10,000 debt, your monthly payment is $150.
Posted on October 27, 2009 at 3:45 am
Okay...I'm interested but how much would debt settlement cost me? How long would I have to be in it? The program lasts for 12-36 months.
Why is it better than bankruptcy?It's impact on your credit is not as bad as that of a bankruptcy.
Posted on October 27, 2009 at 3:52 am
Speaking of impact on credit:
A debt settlement appears on the credit report as "settled", "settled for less than the full balance", or "settled in full."
A Chapter 7 bankruptcy stays on your credit report for 10 years and a Chapter 13 bankruptcy stays on your credit report for 7 years. Both stay on your public records for 20 years.
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