Is there any way to file bankruptcy and have all your debt wiped out under the new bankruptcy law ?

If the answer is yes, what are the legal, economic, employment, etc . conditions to do so ?

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4 Responses to “Is there any way to file bankruptcy and have all your debt wiped out under the new bankruptcy law ?”

1. dcgirl Says:
   September 20th, 2009 at 7:23 pm

   You should speak with a bankruptcy attorney. You can still file bankruptcy and have all the debts cancelled (it’ll wreck your credit and they’ll take away a lot of your stuff) under the new laws but it is a lot harder. Answers you get here are going to be speculation and I would not trust this decision or process to anyone other than a bankruptcy lawyer!

2. edgar10841 Says:
   September 21st, 2009 at 7:54 am

   Yes, but its very hard. you got to prove that you cant financially sutain any sort of payment plan, i think you got to make less than $43,000 a year and that you made an effort to pay the debt. But it can be done just get a good story and hope the judge beleives you.

3. Jason M Says:
   September 22nd, 2009 at 3:04 pm

   Basically it depends on the amount of debt you want to write off. To answer you question yes. A few things you will need though. For example pay stubs from the last six months, Vehicle title’s, a document with your belongings and value, etc. You can’t have a vehicle worth more that $2,400 and no more that $2500 cash. I’m not sure if it’s different state to state but that is New York. There is more things you need to supply to your Lawyer to complete filing. Your debt will be wiped out but it will show on your credit report for a while. Most cases after you file you can still go out and get a loan for a car, personal, or even get a credit card. It will do nothing to your employment as they should not have to worry about your credit report or if your filing or not. Your wages won’t get garnished unless your filing chapter 11 bankruptcy. In that case all your debt gets paid back through your wages. Again how you file depends on how much debt you have. I would call a local lawyer and set up an appointment and they could explain it to you and go over the list of things you will need to do to prepare for filing.

4. my_iq_135 Says:
   September 26th, 2009 at 3:00 am

   The new law is aimed at those with high incomes that abused the old system. If you can afford to pay some of your debts the court will order a payment plan.

   If the court determines that you can not repay your debts they will be discharged. Your primary residency is usually safe from foreclosure as long as you can make the monthly payments.

   The reason for the change is this: some high income people were running up mounds of debt. They would file for liquidation and have those debts vacated by the court. Now if they have the means to repay with lower or more drawn out payments, they have to do so. Think about how much this kind of fraud has cost the rest of us that pay our bills, and you will understand why the law was changed. Someone with a $1 million home can pay some debt back by refinancing, or selling and moving into a more modest home.

   Your income will have to be under about $100,000/year to be able to declare liquidation. It will stay on your credit report for 10 years as a bankruptcy (not seven like an unpaid bill.) It can and will effect what and where you can work.

   If you have lost you job (not quit) for about any reason, fired, outsourced, downsized, or disabled; a discharge is more likely.

   A bankruptcy lawyer can give you the details for this better than I can. They will usually give you a free 30 minute consultation, and will want a retaining fee in advance of taking your case.

   Try to repay your debts on your own or call Consumer Credit Counceling Service, the number is in your phone book, they can help get your creditors to back off the nasty letters, threats, late fees, and interest.