Legal Question in Bankruptcy in Illinois

My husband was laid off Jan 29, 2010. We just received our first unemployment check of $385 directly deposited into our checking today. I am unemployed as well, as I've been taking care of our 3 year old daughter. Our monthly mortgage is $880 per month, car payment $385, utilities and so on. We have 5 credit cards TOTALLING $17,500. November of 2009 I was able to get on a hardship program with 3 of the credit cards to lower the APR as well as lower the monthly payment due (same amount due each month). I was on time with those payments until now. We just do not have the money. We will be going to a food pantry next week to get our groceries. What options do we have?? Is bankruptcy the answer? Are there different kinds of bankruptcy? We are very confused and scared about what to do. We feel that we should pay our mortgage first (it's a loan adjustment...our payments went from $1,342 to $873. If we are late even once the rate will go right back up. Car payment and utilities are paid next...that leaves our concern about the credit cards. Please help.

Thanks much!

Nancy


Asked on 2/18/10, 1:24 pm

1 Answer from Attorneys
Frank Vosholler Law Office of Frank L. Vosholler III

If your unable to even pay minimums on credit cards, it may be in your best interest to file a chapter 7 bankruptcy as long as you are eligible. Basically, you can't have any equity in anything over 30K for your house or 4800 for your cars, you can't have file din last 8 years, and your disposable monthly income has to be in the negative or close to it. Based on what you said in your letter I think a chapter 7 would be fine for you. Please contact me if you need any further assistance.

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Answered on 2/23/10, 1:56 pm


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