McKinney, TX asked in Bankruptcy for New York

Q: I'm not sure if I should claim bankruptcy. I have just over $16,000 in credit card debt, also I'm paying on my car.

I'm on disability. So I get a check for $1,558 at the first of any month. My rent takes up most of that it's $788 a month. Do you think bankruptcy is right for me? Thank you

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5 Lawyer Answers
Carl Nelson
Carl Nelson
Answered
  • Bankruptcy Lawyer
  • Rye Brook, NY

A: The decision to file a bankruptcy is complex and cannot ultimately be answered on a forum like this one. Most bankruptcy attorneys will offer a free consultation to evaluate your options, which I would recommend you do as soon as possible.

Tim Akpinar and Timothy Denison agree with this answer

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: Consult a bankruptcy attorney near you for a consultation and complete evaluation of your financial situation before you do anything.

Tim Akpinar agrees with this answer

Leonard R. Boyer
Leonard R. Boyer pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered
  • Bankruptcy Lawyer
  • Clifton, NJ

A: It could be, but more information is required to provide a meaningful answer. Good luck.

Tim Akpinar agrees with this answer

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA

A: My NY colleague's answer is correct, as far as it goes.

To declare bankruptcy over just $16K is at the low end of debt issues, and may well be solved by lesser means. Most credit card issuers are pretty savvy, and will offer some altered payout/discount for you.

You can only get one bankruptcy discharge over eight years.

Within a day or two of a bankruptcy filing, all your credit card issuers will be electronically notified and will cancel your cards. Your credit rating will drop precipitously, and will climb back slowly over seven years or more, and for most of that, credit cards, when available, will be too expensive.

Living without incurring debt is a smart way to go, but few people can tough that out (most credit card debt currently has interest rates over 20%!)

It behooves you to speak to experienced bankruptcy counsel with your full asset and debt details, to determine your best path forward.

Tim Akpinar agrees with this answer

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered
  • Bankruptcy Lawyer
  • Sacramento, CA

A: Based on the information provided, it's difficult to give a definitive answer on whether bankruptcy is the best option for you. However, here are some points to consider:

1. Income vs. expenses: Analyze your monthly income and expenses to determine if you have any disposable income to pay off your debts. If your expenses exceed your income, bankruptcy might be a viable option.

2. Type of debts: Credit card debts are generally unsecured and can be discharged through bankruptcy. However, car loans are secured debts, and you may have to continue paying them or surrender the vehicle.

3. Long-term impact: Bankruptcy can negatively impact your credit score and remain on your credit report for up to 10 years, making it difficult to obtain credit in the future.

4. Alternatives to bankruptcy: Consider other options, such as debt consolidation, negotiating with creditors for a lower interest rate or payment plan, or seeking assistance from a non-profit credit counseling agency.

5. Consult with a bankruptcy attorney: Schedule a consultation with a bankruptcy attorney who can review your specific situation and provide guidance on whether bankruptcy is the best course of action for you.

Remember, bankruptcy is a serious decision with long-lasting consequences. It's essential to explore all options and seek professional advice before proceeding.

Tim Akpinar agrees with this answer

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