Can I get a Chap 7 and eliminate all of my unsecured debt?

[storesstores]

Do the judges / trustees / lawyers ever question how one obtained such high credit lines and such a large amount of overal credit lines?

We have a tremendous amount of credit card debt and realstically we will never be able to repay.

We borrow from peter to pay paul but its now starting to get tight.

We were never late but thats just because we continue to buy ourselves time but now its catching up to us.

Can I file BK without late on payments?

Whats the most they can make up pay back?

We owe $$ on about 14-16 cards and we owe about $300,000


Any help would be greatly appreciated.

[storesstores]

Here are some more accurate numbers:

I owe about $308,000 on Unsecured personal debt.

I bought my house about 3 months ago. I have VERY little equity in it.

I am selling my other house (I currently own 2 houses but I need to sell the other one to leave me with just the house I live in now for the past 3 months)

About $200,000 of my unsecured debt is due to me borrowing money from my personal credit (credit cards and unsecured personal loans to fund my startup business)

My business lost about $6,000 this year but that is because of the startup costs and due to the fact that I have been deducting the credit card interest associated with the business as a deduction. If I didn't deduct the credit card interest (charge it as a business expense) then my business would of had a profit of probably about 10,000 rather then a loss of $6000

The past 6 months from my regular job I made about $19000

How will my existing business affect me? I thinking that they will want to add this into my income because they might say that the business will make $$ if I didn't charge off the credit card interest.

The house that I am in now takes up all of my income. So there really is no $$ left after paying the mortgage.

Think I qualify for a Chapter 7 ? I would obviously like to get a 100% clean slate.

[hansky]

You need to see a lawyer sooner than later - preferably prior to transfering any property. As to how your business will affect you, you don't say what it is, how it is set up, what assets is may have, etc. However, owning a business is another reason to get real advice from a lawyer, again, sooner than later.

[poorme]

There are others here more more experienced than I who can address your business related impacts - but let's just consider that a 'job' for now where you derive income.

Not sure where you live, but first suggestion is to seek bankruptcy lawyer advice. You should be able to get a couple of free consults. Secondly, you'll have to see if you pass the means test in order to qualify for a 7. If so, then the answer to one of your questions is Yes, generally most unsecured debts can be eliminated in a chapter 7. Your attorney may suggest what's known as a 'chapter 20' - which doesn't really exist, but starts with a 7 and then rolls the remainder into a 13 payment plan. With the large amount of debt you really should get professional consultation, especially since some of that is private loans.

At any rate, welcome to the forum! There is a tremendous amount of help here and you can learn a lot by reading the sticky notes and following the paths of others who've gone down this road already. There is a better, less-stressful life ahead, friend. Don't pass it up!

[storesstores]

I need a to find a good and reputable lawyer in the Central Florida area.

Any suggestions?

[hansky]

I need a to find a good and reputable lawyer in the Central Florida area.

Any suggestions?

Jonathan Alper - www.alperlaw.com is one name. No personal experience with him. See at least a couple lawyers. It is an ongoing professional relationship - not a paperwork service. Comfort counts.

[storesstores]

He looks reputable going by his site.

I just sent him an email...

[no_it_all]

To answer your question: NO, you can not discharge all unsecured debt in a Chapter 7.

Examples: Taxes, Federal and State
Child support
Student loans
Judgements due to OUI or DWI
Probably some more that I don't know about

[HHM]

There is nothing wrong with that amount of debt per se, but your case will probably be more heavily scrutinized for abuse by the U.S. trustee than the average case, especially since the bulk of the debt was accumulated within the last two years and there is a business involved.

You are going to want to get a good Bk attorney, not some run of the mill BK attorney.

[FilingOnMyOwn]

You should be able to discharge all of your credit card debt, but you will have to stop using all forms of unsecured credit for about six months, and you do need to shop around for a good attorney. Not a salesman, but an an attorney who tells it like it is. Thats alot of debt. Best of luck.

[storesstores]

More Questions:

#1) If some debts are 3-4 months old, will they questions those more?

#2) If I stop paying all my credit cards and my credit card companies chargeoff the debt and sell it to a collection agency, how will this affect the Bankruptcy? Are collection agencies more or less likely to show up in the courts?

My lawyer told me that since the new laws took affect, no creditor ever shows up anymore...

#3) What was the most unsecured debt that you know of that someone got discharged in a BK 7 preceding

[SamanthaJones]

So far you win by sheer number of unsecured debt.

Maybe 'no it all' has the most that has been discharged, discharged, though?

[sofarindebt]

That is odd that you got approved

for a house just 3 months ago with that much debt. But I agree, don't sell the house before speaking with an atty. And if you do, I would keep the proceeds and expect the trustee to take it for sure!

Interestingly, one atty I spoke with also said after the new law, he has never seen one creditor show up at the 341.

Wonder why?

[HHM]

More Questions:

#1) If some debts are 3-4 months old, will they questions those more?

#2) If I stop paying all my credit cards and my credit card companies chargeoff the debt and sell it to a collection agency, how will this affect the Bankruptcy? Are collection agencies more or less likely to show up in the courts?

My lawyer told me that since the new laws took affect, no creditor ever shows up anymore...

#3) What was the most unsecured debt that you know of that someone got discharged in a BK 7 preceding?

Recent, large charges, can be a problem for a BK. If you charged several thousand dollars within 6 months of filing BK, odds are, the creditor will object to the discharge of those debts that were charged within that timeframe.

[gacreditguy]

get a good attorney and they will get you through this.