Jul
I owe about $3000 in credit card debt, and have owed this for about 7 months now. I haven't been able to find employment where I live, I have a automobile that doesn't run, and the creditor is threatening to sue me.
I want to file chapter 7. Is it possible, even though I don't owe that much?
Answer:
I think it varies based on your income and the area you live in. Call a lawyer, most give free consultations. It'll fry your credit for a while though, so you might want to reconsider it over 3k.
Answer:
The word “bankruptcy” is mostly accepted in courts of law when it comes to companies being unable to function and pay their debts.
Courts do agree that fixed assets, furnitures and fittings, vehicles etc. should be sold to reduce their indebtedness and finally, for insurance to honour their obligation and pay necessary claims.
For individuals, “bankruptcy” might not be accepted!
By right, your creditors are supposed to take you to court. (You are not authorised to file anything)
You’re to defend yourself in court that PRESENTLY, you’re unemployed, no fixed asset and moving vehicles.
No court will kill you. Your creditors will be ordered to exercise patience until you are gainfully employed, even if it takes you 2 years to secure one.
Interest will be worked on $3,000 at the agreed rate for (say 2 years), you’ll thereafter sign an undertaking (your employers involved) that you will be reducing your debt by so much weekly or monthly.
When legal costs and interest are added to your principal debt of $3,000, you could end up having to refund $15,000
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