Bankruptcy questions......

[Crystal5]

I have a couple more questions about filing bk....

We have owned our car over the 900 some days, how much will that help us out on filing the bk?

What if you have a second mortgage on your home? What happens with it?

What happens say 2 years after filing bk you get behind again and cant pay the mortgage payments or the bk payments, or say you accumalate medical bills?

What is a reasonable or typical amount a lawyer should charge you to file bk?

I'm am from NC.

Also, we run a small business. It is our only source of income. It is very slow right now, hence the reason for the bk issue. How do we show what our income is. It is very up and down. Also we qualify well under the limit to file chpt. 7, but we do not have very much unsecured credit, mostly secured. Would we file 7 or 13.

Thanks again.

Thank you.

[HHM]

I have a couple more questions about filing bk....

We have owned our car over the 900 some days, how much will that help us out on filing the bk?

The length of time you own it is irrelevant, all that matter is the amount of equity (i.e. the difference between what you owe and what is worth. If the car is worth more than you owe, then lets hope that amount falls within your State's automobile equity exemption

What if you have a second mortgage on your home? What happens with it?

You either keep paying it, or you lose your house

What happens say 2 years after filing bk you get behind again and cant pay the mortgage payments or the bk payments, or say you accumulate medical bills?

Too many questions wrapped up in one here. If you get behind in your chapter 13 payments and cannot amend your plan or otherwise cure the default, your case will be dismissed and you are back to square one. If, while in a 13 payment plan and you default on the mortgage again, the bank will likely make a motion in BK court to start foreclosure

What is a reasonable or typical amount a lawyer should charge you to file bk?

Chapter 7, $1,200-$1,500, Chapter 13, I really don't know under the new law, but probably $2,500

I'm am from NC.

Also, we run a small business. It is our only source of income. It is very slow right now, hence the reason for the bk issue. How do we show what our income is. It is very up and down. Also we qualify well under the limit to file chpt. 7, but we do not have very much unsecured credit, mostly secured. Would we file 7 or 13.

If its mostly secured debt, and you want to KEEP the underlying property that secures the debt, then you have no choice but to file Chapter 13. A chapter 7 wouldn't do you much good. However, to qualify for a 13, you must show that you have regular and consistent source of income.

Thanks again.

Thank you.

Please see my responses in red in the quote box.