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More common questions by a newbie who's gotten in over his head and needs advice

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    More common questions by a newbie who's gotten in over his head and needs advice

    Hi all, I've recently started thinking seriously about going for a chapter 7, and would love a little insight into a couple of things. I know that I really need to go to a lawyer to find out all of this for sure, but before that I just thought I'd benefit from everyone's experience here, and get a better idea of what I'm getting myself into. Reading the forums here has already been a great help on educating me on this subject, but I'm not really sure that I'm even eligible for a chapter 7. I think a lot of you out there are worse off than me, and have really been through some rough times. Right now, I'm worried that I'll end up there in a few years if I don't get a new start and make some changes.

    Without going into great detail, here's my situation: $19,000 cc debt, $29,000 net yearly salary, no savings, no property, no car loan, car's only worth less than $500, it's on it's last legs. Most of my assets are electronic music gear, keyboards and such, and a largish music collection, lots of cds and records. Not really sure how the court will look at these, and how the value would be determined. I actually release cds of music I make with the music gear, but I don't make any money doing it (maybe a couple of hundred a year), so I don't know if I could actually claim the gear as trade assets.
    Again, I know I need to talk to a Lawyer, but does this sound like a reasonable chapter 7? I'm always on time with my cc payments, and I can continue to be on time.... but I can't save money, and can't afford to better myself this way. It's a slow snowball towards future trouble that I'd like to stop now.

    Also, concerning the car, I really need to get a new one. If I got a $5000 CapitolOne auto loan this week, then filed bankruptcy in a month, would I be able to just reinstate this loan and continue to take responsibility for it at the same rate? Or would it totally mess things up? I can't really wait 3 or 4 months till after bk to get a new car, and also it would be nice to get one now at a lower rate if I can. Just not sure how that works.

    Thanks for looking at my insanely long post, and for any advice anyone has, I really do appreciate it.

    #2
    Anyone? Please? helloooooo......

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      #3
      From what I have read in particular from people on this forum, not having a house or car note could be a problem for filing a Chapter 7. The bottom line is your debt to income ratio and how much disposable income you have. It certainly is worth a free consultation with an attorney but don't wait too long because the dreaded BK law takes effect in October.

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