Possible filer

[cherm60]

My SO was laid off in January and has not been called back nor has found another job; currently collecting unemployment in PA. The unemployment pays the rent, utilites, health insurance, car insurance, and car payment. Prior to the lay off, credit card debt was being paid off, but since this happened it has been the source of living expenses. I am helping but it is starting to strain the relationship.

At the moment, everything is being paid at least minimums on CC's. He is looking for a new job and also waiting for the employer to possibly call back in July. All I could hope for.

Do you think BK is the best option? The vehicle is current also the payoff and value of the car is about 2000 in negative equity.

Total Debt is close to 50K
CC debt is about 32K
Car Loan is about 18K

He is scheduled to go to a local Legal aid place to discuss the options. Any advice will be appreciated.

as always, TIA

[lrprn]

Your SO sounds like an excellent candidate to file Ch 7 bankruptcy. Going to see Legal Aid is a good start.

Because Legal Aid is often not familiar with the local bk court and trustee customs, he/she should also set up free initial consultations with experienced bk lawyers in the area to get reliable answers to questions and see if there are any potential problem areas if he/she does decide to file.

[keepmine]

Just to add to lrprn's remarks. Noway someone with $32K in cc debt and unemployed should be paying these cards or asking someone else to pay them.
Let'em go and use his UE for living expenses.

[LuciluS]

I replied to your post on another forum. As, I stated, & agree with keepmine, Stop paying on your credit cards and use the UE money to keep paying your daily/monthly expenses. Don't worry about the balances. A Chapter 7 Bankruptcy filing & a Discharge of such, those balances will be Zero.

You mentioned you are able to pay the mortgage and your car payment each month with SO's UE. If you are able to do so, you and your SO are very likely candidates for a Chapter 7 bankrupty.

Suggest you go to legalconsumer (dot) com and place your specific $ into the Bankruptcy means test calculator as a starting point. Legal Aid will appreciate having a 'Document' of your financial situation.

Luci

[LuciluS]

I forgot we have a Member, DebtStinks, on this Forum who has written an easier means test.

Here it is:

http://www.johnfire.com/meanstest/wizard.php

Luci