Chapter 7 With One Debtor Only

[musclecar75]

Hi all,

My fiance is out of work for over six months, and cannot find a job. He has a $20,000 credit card that he inherited when he divorced his first wife (now in his name only), so we've been making payments on this card. This is the only debt he has. Money is tight and I'm thinking that his filing a Chapter 7 could be an option. Would he be able to do this, even though he has only the credit card debt as the only debtor? Is there a minium amount of debtors that are to be listed before one becomes eligible to filie a Chapter 7?

[ccsjoe]

There is no minimum amount of debtors required. Would he be able to? Probably yes. Would it be the right move? I'm inclined to say no, but everyone's situation is different. Has he tried calling the cc and negotiating? Is this cc payment causing you hardship? Is the cc still open and being used?

[musclecar75]

Thanks for answering, ccsjoe!

As of now, we can continue paying on the card since he is collecting unemployment. However, once that runs out and if he has still has not found a job, we might have to consider bankruptcy because we cannot afford that card, in addition to all our other bills on just my salary alone.

The card is almost maxed out and has been for a couple of years. We still use the card, but only when we have to. Being that the card is almost maxed out, we do try to pay above the minimum payment amount so we can at least try to get the balance down as much as possible, since at this time we can still make payments on the card.

Hope this makes sense.

BTW, he has not called the CC company yet to try to work something out.....would this be a better option?

[ccsjoe]

So you can afford to make a living...or I should say eke out a living on your salary alone, is that correct? If so, then yes, filing Ch7 may well be a solution. If you can't, then I strongly suggest you focus on the cash flow part of the equation first. Filing CH7 is not going to solve your cash intake.

[musclecar75]

Yup, that's the case.....we can eke out a living on my salary alone. Paying $500 a month on the credit card with just my salary won't be possible.

Thanks for the info.....it's much appreciated!

[ccsjoe]

The card is almost maxed out and has been for a couple of years. We still use the card, but only when we have to. Being that the card is almost maxed out, we do try to pay above the minimum payment amount so we can at least try to get the balance down as much as possible, since at this time we can still make payments on the card.

Hope this makes sense.

BTW, he has not called the CC company yet to try to work something out.....would this be a better option?

It makes sense. That was our mistake too...thinking we could rob Peter to pay Paul, never ended up paying any of them down as we needed cash flow for necessities, so we ended up using the maxed out cards again, over and over.

He can always try to call the cc company, although that might prove fruitless. CH7 should always be looked at as a last resort, it is like setting off a nuke.