My mother-in-law’s situation:

1) 72 years old. Single. 40 year old deadbeat son living in her spare bedroom.
2) Owns home with 0K loan balance on a realistic value of K. No other debt.
3) Her total income(social security + small pension) is about equal to her fixed costs (mortgage, tax, insurance, utilities)
4) She has been draining her small savings to pay for food, emergency repairs, uncovered medical expenses. That balance is approaching zero.
5) No assets other than household goods and an old car.

Desired outcome:
1) Get out of house and rent small apt with no room for son, lower rent, vs mortgage payment, close to daughter.
2) Get rid of car.
3) No need for decent credit other than to get apartment lease started. She’s never going to buy anything that would require credit.

Bottom line is she needs to lower her monthly fixed costs, get rid of parasitic son and move closer to my wife and I for logistical and financial help.

So my question is does she really need to declare Chapter 7 or can she just do a foreclosure and walk away? I believe a simple foreclosure is the best thing for her; simpler and less stress. Any other thoughts and things she needs to consider?

I’m looking at this as a simple process: 1) Rent apartment and start utilities. 2) Move. 3) Stop paying mortgage. 4) Deal with bank on foreclosure but I don’t really know what she has to lose by just ignoring them.

Thanks.

I just graduated college a couple months ago and can’t find work. I let my family take advantage of me and run credit cards up, so now I am ,000 in credit card debt. Part of which is a ,000 Care Credit account my step dad used to get false teeth after having his knocked out in an accident.

Now they are ignoring the debts they accumulated and promised to pay or they make excuses why they can’t. I’m an idiot for trusting them! I have sold everything I own to pay for the bankruptcy. I am being sued by two of the creditors.

I have no choice but to file bankruptcy since I have no income and no assets. I am seriously thinking suicide might be an option as I have always valued responsibility and utterly embarrassed by this situation.

I’m so frustrated. How can my stepdad put his teeth in every morning and not feel bad about the utter horror he is putting me in? To make matters worse, he just put a new pond and water fountain in for me mom for mother’s day, complete with bridge and all the pretties. They are also buying a new truck.

I hate my life. Is there a chance for me to recover from this and live a normal life? I am still keeping my car which I am current on payments, but I’m scared and confused.

Im 19yrs old, i got two credit cards when i turned 18, one had a 2500 balance and the other had an 8000 dollar balance. and for the first few months i had 200 to 300 dollars in debt and i payed that off from month to month, i recently had my car take a shit, it would have coasted me 5000 dollars for the new engine, so i just bought a used car for 5000 on my credit card. then i was lost my job for a 2 months and i put on another 2000, between paying for rent, ex….. then other things started to come up where i didn’t have the money and needed to pay them. So now i have both cards maxed out. not sure what is best for me to do. I cant afford much over the minimum payments, im not sure if i should go with a debt help/consolidation thing, file a chapter 13 or 7 bankruptcy, i really don’t have many assets they can take. its just getting hard to pay the cards, and other expenses. If anyone has any information that might help me or any tips. it would be greatly appreciated. Thanks All.
i was making 2000 a month now because i lost my job and i found a new on im only making about 700 at a min. up to 1000.
Also i have have a credit score of 753. it was with the help of my mother. she had me on her credit cards sense i was 15. witch really busted my score once i got my own cards and started making payments.

I was running LLC co(April 06) with another partner.The partner deposited co.money in his personal a/c.He took money to purchase truck for co. but never purchased.
When confronted that it was a fraud and my intention not to continue with business,he changed the locks(Sep.1 06) of warehouse and disappeared.(He did not even let me remove my personal things like my diary and photo album)I went to police station but they said it is civil matter and they can not help.Later on his lawyer sent me letter informing that his client has changed locks and willing to dissolve the co.
I called him several times but he did not answer.
I approched American arbitration association(as per our operating agreement).He did not deposit full fee (deposited part)and the arbitrator dismissed the case.
I approched the court and filed complaint( civil) claiming my original investment and profit till date of locking and the date was in Jan 08.In the mean time on Dec 5 he filed bankruptcy under chapter 13.
His lawer sent letter saying ‘automatic stay is in effect’. On the claim amount he wrote ‘disputed’.
I feel cheated as the co was in profit as per a/c books maintained by accounting firm.After lock out he started business in his personal name using assets of LLC Co.I do not know what to do as my whole savings are gone.
On 29th Dec.07 I filed a complaint with Sherriff but was informed that they can do nothing as it was a civil matter.
Pl somebody advise me what can I do?

My husband and I were married in Sept 09. He got insurance the next month Oct. 09 through my work. In December of 09 His legs went paralyzed. He went to ER and then to the University Hospital. Two days later he was diagnosed with Spinal AVM a very rare condition. He had a surgery to embolize and when that did not help he got had a second invasive surgery to cut off the blood supply to the AVM. It was successful. He was able to walk again and pressure was relieved off of his spinal cord.
He was scheduled to have another surgery to rebuild the disc in his back in December 09. We had an authorization to have the surgery. That one never happened.
For this first surgery we received letters stating a pre existing condition investigation was going on and claims were pending. We never got any response when we call the Lovelace Sandia company. Just figured we would wait to see what they said. We were sure they would pay.
As time went by they found another AVM six months later and he had another surgery. They paid all of these claims and had a authorization for this second one..
We just got a bill, after no other communication from the insurance co, for 0,000 from the hospital. Obviously we cannot pay that bill. Will never be able to pay that. We are newly weds with one income. That is more than my home is worth.
I looked up the claims. There are too many to count. At one time a payment was made for ,000 and then deducted. We turned in all the papers they asked for and so did the doctors. We had no idea my husband had Spinal AVM until the day before his emergency surgery. What is my course of action to take. Also we are married now. Will this effect my credit? Everything is under my name, house cars etc. My husband has no assets and ok credit. I have great credit. Will we have to file bankruptcy? Or can he just file?
The only thing the letters say is that if we do not agree with the outcome of their decision then we can appeal it in a written letter. How would I go about that? There are so many different claims under so many different doctors but at the same hospital. Do I need to get a lawyer?
More background info.
My husband just finished school. the surgery actually kept him from graduating on time. I am the only one with income as of now. All the bills, assets are under my name. I own a rental house on my own and our home with my father. I have been getting bill collector calls asking for my husband (phone recorded messages that I know are from this.
I plan to write the appeal but don’t know how or what to say…We are very stressed about this. My husband still suffers nerve damage and is learning how to live a normal life. Not all of his functions are back to normal yet either. Please help with advice. We are on the verge of losing our minds after everything we have gone through together. i can’t take anything else… Wishing to have a happy healthy life with my new husband.
If they were going to deny based on pre-existing condition then why would they pay for the second surgery completely??
We don’t know what type it was (1-4)?. He did not have insurance before. He was a full time student. He had x-rays about 11 months before the episode. No treatment. Did not know such a thing existed. My question is what course of action to take not tell me you think It was pre-existing condition.

I was running LLC co(April 06) with another partner.The partner deposited co.money in his personal a/c.He took money to purchase truck for co. but never purchased.
When confronted that it was a fraud and my intention not to continue with business,he changed the locks(Sep.1 06) of warehouse and disappeared.(He did not even let me remove my personal things like my diary and photo album)I went to police station but they said it is civil matter and they can not help.Later on his lawyer sent me letter informing that his client has changed locks and willing to dissolve the co.
I called him several times but he did not answer.
I approched American arbitration association(as per our operating agreement).He did not deposit full fee (deposited part)and the arbitrator dismissed the case.
I approched the court and filed complaint( civil) claiming my original investment and profit till date of locking and the date was in Jan 08.In the mean time on Dec 5 he filed bankruptcy under chapter 13.
His lawer sent letter saying ‘automatic stay is in effect’. On the claim amount he wrote ‘disputed’.
I feel cheated as the co was in profit as per a/c books maintained by accounting firm.After lock out he started business in his personal name using assets of LLC Co.I do not know what to do as my whole savings are gone.
On 29th Dec.07 I filed a complaint with Sherriff but was informed that they can do nothing as it was a civil matter.
Pl somebody advise me what can I do?
Already it is more than 16 months and I have paid more than $ 7000.00 to American arbitration association and attorneys since he changed locks(sep.1,06)

A bankrupt company’s assets were sold for ,000. Legal costs of bankruptcy and other preferred claims were ,000. Creditors’ claims totaled ,000.

What percent of the creditors’ claims can the trustees pay?

A bankrupt company’s assets were sold for ,000. Legal costs of bankruptcy and other preferred claims were ,000. Creditors’ claims totaled ,000.

How many cents on the dollar will each creditor receive?

A bankrupt company’s assets were sold for ,000. Legal costs of bankruptcy and other preferred claims were ,000. Creditors’ claims totaled ,000.

If a creditor has a claim of ,500, how much will he or she receive?

I just need an explanation of how to find these I know that the chapter 13 bankruptcy stays on your credit for 7-10 years. But, how do you figure who gets what percent of what?

I want to file Chapter 7 to totally get rid of my debt. The only problem is my spouse doesn’t agree with this, so I would have to file by myself. I have 5 credit cards in my maiden name and 1 credit card in my married name. My medical bills are in my married name. As far as my assets, my name is on the house but not on the mortgage. My name is also on the two cars that we own.

Can I file Chapter 7 bankruptcy without the cars and the house being affected? If I can’t file by myself then what else can I do?

My parents may be filling for a chapter 7 bankruptcy and have 4 cars in their name (my truck included). I just paid my truck off and am about to put it in my name. If my parents file for bankruptcy soon after I put my truck in my name can they still take my truck? I heard there was a year time period between letting go of assets and filling for banckruptcy before those assets cannot be taken. I live in Colorado Springs, im sure theres different laws depending on state of residence.

Hi.. I recently was served with a summons and complaint that states I have twenty days to respond to it in writing to the court or I will be faced with a default judgement. I have looked up alot about this online and found out that in my state (indiana) I can file a "Motion to dismiss fo failure to comply with rules" if the plaintiff did not have a contract written instrument not attached to the complaint and summons, and it did not. I still need to call my court here in my county to be sure that it is the rule before I can try this though. I need to know how to word my answer if I would go with this route and if even if I dont I still have to answer to avoid the default judgement. I know that I need to go through and deny each complaint that is numbered on the sheet but I do not know how to word it exactly. The reason that I am being sued in the first place is because my b/f and I had a couple credit cards that I was a joint on with him. He was always the one responsible for making the payments. He ended up having to file bankruptcy, and once the case was discharged it automatically made me the one responsible for the amount. I have no way of making any kind of payment on it at this time. I have been out of work since 2007 when i found out I was preg with my daughter and i have been a stay at home mom since. So i know that the judge can not order for any kind of wages to be garnished and I do not have any assets for them to take, so most likely its just going to be on my record and if I would get a job or any money withen the next ten yrs or so id have to pay it then. Do I need to deny the complaint in my answer even though I know its true .. or will the judge just order me to pay it then because he wouldnt have been able to hear my story or i guess situation? The complaint states that 1. The defendant is indebted to the plaintiff int he amount of ***** plues accured interest of **** as of jan 2010.
2. Venue is proper with this court and based on the defendant residing in **** County.
3. The plaintiff owns and is the holder of an acocunt due and oweing by the defendant, and is the asignee of Elan/ Mainsource bank.
Wherefore the plaintiff respectfully requests the following relief.
1 Judgement against the defendant in the sum of ******* plus accured intesest of **** as of jan 2010
2 Interest thereon at the rate of 8 percent per annum from jan 2010 , and 8 percent per annum from the date of judgement , until the judgement is satidfied.
3 For plaintiffs costs herein expended
4 For any and all other relief to which the plaintiff may be entitled pursuant to contract, statute. or common law.

I was served yesterday legal papers that I’m being sued for less than ,000.00 by my creditor, first I’m unemployed, I looked up online and found a lawyer that charges 50 for filing bankruptcy, I need to know the best option and plus I don’t have any money! they only thing I own is my car which is been paid off, I know it sounds like a radical question but how are they thinking of getting paid by me when I don’t have any assets? are they trying to take away my only property which is my car? and plus I can borrow money from my mom( I’ve been living with her)(her salary is approx: ,000 annually)(since I’ve looked over the fact that they see if you’re living with someone they might take them responsible as well!)(so she can’t be because we’re already below the minimum salary rate) anyways my radical question is should I even get bother by it? I mean they can’t get anything off of me! I’m flat BROKE! my bank account is even overdrawn by thousands! and since if you’re answer is yes<< (you are being sued so start the PANIC ALARM) which is best? and do attorneys from nonprofit organizations do the same work as an attorney who gets paid some 00 ? (I mean if it’s him charging me because he will go to court and file my papers and stuff..)(hearing meeting is %100 me<< so I’m wondering to go cheap with it to prove to the court that I AM BROKE for real! or borrow money and pay the lawyer! which is best?
Thanks:)

During a long period of underemployment and costly divorce, I accumulated about ,000 in credit card debt. My current income is 5,000 per year, I own a home with some equity that I can’t/don’t want to sell, and two vehicles outright. All in all, my assets are probably worth ,000 net mortgages, etc.

I was able to make the payments on my credit cards until all of the banks raised my rates to 30%, despite my paying on time and having a good credit score (735). At loan-shark rates, I have started falling behind each month and have burned through all of the cash I’d saved.

I could pay the balances back if they were at reasonable interest rates, but not at 30%. I don’t want to risk my home or vehicles, but I could care less about my credit score at this point because there’s no credit available to anyone anyway.

Would debt settlement be a better option than a Chapter 13 bankruptcy? If I did file a 13, would I be able to keep my vehicles?

After being laid off a few months ago… and having lots of debt for having to keep a roof over my family’s head, the **** hit the fan. So… long story short:

I’ve got 4 credit cards with accumulated debt of ,000 (pretty much due to expensive but normal life events that happen, NOT excessive spending), and I’m gonna man-up and take the frigging negative hits, I want to get this over with, start the clock ticking, and start fresh in either 7 or 10 years.

I’m could file for bankruptcy, which will show up on my credit report for 10 years. OR, I could just let the credit cards sue me and have default judgments against me, which will fall off my credit report and disappear in 7 years.

No guesses please. If one is favored over the other, please explain. Don’t assume there are any extenuating circumstances, this is just general for now. Check back for my updates to your answers.

Also, I’m judgment proof/insolvent. {content} to my name, no savings, no assets, 0 car, no furniture, no property, no house.

Because of certain family members requiring full time assistance, they will be needing my care for a while. So basically, I’m not worried about having my wages garnished because I most like will not even have anything for the cards to grab for a long while.

Bonus question: Does anyone know for sure, once all the judgments fall OFF my credit report down the road, do the credit cards purge me from their system at some point, and can I get a credit card with them again with a normal credit limit? OR do they keep me in their system forever, and refuse to let me have a credit card with them again? I could see them going either way. I know what they would favor!

After being laid off a few months ago… and having lots of debt for having to keep a roof over my family’s head, the shit hit the fan. So… long story short, I’ve got 4 credit cards with accumulated debt of ,000 (pretty much due to expensive life events that happen, NOT excessive spending), and I’m gonna man-up and take the frigging negative hits, I want to get this over with, start the clock ticking, and start fresh in either 7 or 10 years.

I’m eligible for bankruptcy, which will last 10 years on my credit report. OR, should I just let the credit cards sue me and have judgments against me, which last 7 years on my credit report.

No guesses please. If one is favored over the other, please explain. Don’t assume extenuating circumstances, this is just general for now. Check back for my updates to your answers.
I’m insolvent. {content} to my name, no savings, no assets, 0 car, no furniture, no property, no house.
And no answers with spam links.

I have a Civil Court judgment in Michigan against me from a Credit Card Company. I am on Social Security / Disability, and I know they are not allowed to garnish that form of income. I have taken out what little I had in my bank account. I live in an apartment, I do not have any "assets" to speak of. I have a car that is not worth any more than the loan I am paying on for it. I have been threatened that a Sheriff is going to come into my home and take all my belongings and sell them to satisfy the debt. Just exactly how far are they allowed to go when I don’t own anything of value anyway? Do they literally break down my door and take all my stuff? That’s what I have been threatened with by the attorneys for the creditor. I am probably looking at a few more Credit Card companies suing me in the near future. If there are several judgments against me is the Court more aggressive about collecting?

Also, I just received the official Judgment in the mail. What comes next? I have read online that there is another hearing to determine my ability to pay. Is that true – should I be expecting another Court notice for a hearing such as that, or do they just automatically go to Collection procedures after the Judgment?

Yes I have considered Bankruptcy, but do not even have the money for that right now.

There is no need for commentary such as "pay your bills & you wouldn’t be in this trouble, blah, blah". I am in the position I am in, period, and I do not have the income or means to pay right now. No, not even .00 a month. Thank you.
Thank you for your quick and supportive answers thus far! Now I don’t feel so scared.

I have had an extraordinarily bad year: sporadic employment, lost my car in an accident, etc. I am seriously considering filing for Chapter 7. All my credit card accts are closed now and under a debt mgmt company (I did this to lower my rates), but since I have no money coming in, I can’t pay them anymore.

I have zero assets to take…my most valuable possession is probably a queen-sized bed. I have no plans to get a mortgage in the next five years, won’t need a car if I continue to live in this same city, and have no desire for credit cards. I just want to bring my monthly overhead to something manageable and restart my life. I live pretty modestly…studio apartment, don’t go out to eat, don’t take fancy vacations, etc.

Is it worth my while to file for bankruptcy? I don’t have creditors or collectors after me yet, but unless I find a job in the next month, that will soon be the case.
If I could find a moderately-paying job (say even 10K less than I have been making in the past), I could pay minimums…however, when you are unemployed, it doesn’t matter how much you owe.

I also want my life back. I’m tired of being so poor I can’t even go see a movie on the weekends. I admit, the idea of having my monthly nut cut in half (with cessation of CC debt) sounds pretty great.

I know that it might be tougher to get an apt in the future…I can’t predict 5 yrs from now, but I’d be OK even staying where I am for the time being. As for jobs…well, I can’t say how often employers check that sort of thing…it’s kind of comical that a bankruptcy would mean you’re more likely to stay unemployed when you think about it.

I found a means test online and I took it, I did it two ways, with our income at the moment and our income in the last 6 months. Depending on how I did it, we either had a negative amount of money as disposable income (last six months) or we had a very low amount of disposable income (8) future 6 months. It said I passed the means test both times, of course I’m not positive if I did it right but I just went with what they had as deductions. If you are below the Median for your state and you pass the means test, will you automatically qualify for chapter 7? We have no assets except for a car we are still paying on. I do have an appointment with an attorney, I would just like to know what to expect.
And I know bankruptcy is looked down on, but we are desperate for some relief, we have had some bad luck and paying for everything we owe is just no longer an option. Only about a 1/5 of it is credit card debt.

My husband and I filed Chapter 13 and now my husband has passed away. It’s only been a week or so. The only income that I have now is a Soc. Sec. check for my son who is almost 17. I am not old enough for widows benifits until Nov. I am not working as my husband was so sick and I had to care for him at home. I did not have enough credits to get my own soc. sec. I do not have enough income to continue an 00 a month payment to the bankruptcy court. It seems my only salvation temporarily is a possible disability check that would be retroactive to July. I believe I owe only about ,000. I am doing my tax return today and will make a copy of it and attach the death certificate, and send it along to either the attorney or the trustee, I am not sure which to send it to. Is their any relief in the law for this kind of situation. The only assets are my home and car and contents of our house. We had no insurance of any kind. I would appreciate any help with this….Thanks so much!

A couple years ago, my parents’ house burnt down.
My mom was a chronic alcoholic, and stopped working, dad’s a retiree.
Home insurance paid for reconstruction, but the construction company was shady and after many verbal contracts with my mother, some substitutions of building materials, and some fraudulent billing (they charged them for new studs, but left the old ones standing), they went ,000 over what the home insurance company would pay for construction.
A few months after moving back into the unfinished home (the contractors stopped work when it became obvious they weren’t going to get their final payment) my mother passed away.
My brother had bought the house shortly after construction was complete. He had been paying the mortgage since before the fire. My father continues to live in the home.
Now the construction company is threatening to sue my father. They claim that the sale of the home was a fraudulent act intended to circumvent the lien that they were intending to put on the home.
My father is 63 years old. He has been a chain-smoker since he was 9. I believe he has untreated diabetes. His feet are swollen to the point that he can’t wear shoes. He doesn’t leave the house, can barely walk, and does not want any doctor’s treatment. He will be dead very soon.
My brother isn’t afraid of them claiming fraudulent sale of the house. He has a lawyer-friend and enough money to sustain a court case.
He will not, however, pay legal fees on my father’s behalf, and when it comes down to it, there’s no way he could defend against this construction company.
So, look at it as, we are not morally obligated to pay this money, but when they decide to sue, they WILL win.
My father has no assets. He no longer owns his home. He has a 7-year old, damaged car he doesn’t drive. He is chin-deep in debt of all sorts. His pension is 00 a month, which barely covers his living expenses without a mortgage to pay. He has a life insurance benefit, through work, totaling about 275,000, which is coming to his 5 children after his death.
If he files for bankruptcy before the contractors sue him, can they make him get a life insurance cash-out? Or affect his pension?
If he doesn’t file for bankruptcy, doesn’t show up to court, and lets the contractors get a judgment against him, what can they take?
Do they have any legal right to come after his children for the money?

I’m from Texas where credit card companies (UNSECURED DEBT) can NOT put a lien on your home or sieze assets (unless purchased with said credit) so they don’t even bother getting a judgement against you. However, I know in NY credit card companies can actually put a lien on your home so they will definitely get a judgement against you.

We got way off track and have credit card bills that are way behind. Almost all are in collections. We believe we can get back on track, and don’t want to file bankruptcy yet. We’re moving to Hawaii for a job, but I’m wondering if anyone has any info or can help me find some online somewhere (I’m lost) about the creditors’ rights.

I know someone will tell me to contact an attorney in Hawaii, but it would be great if someone knew.
Thanks