Legal Question in Bankruptcy in Pennsylvania

Should I or can I file bankruptcy?

I have been separated from husband for six years. Had to start over, left with nothing. My name is still on home he lives in, no equity in home. Lost my job November 2001. Have gotten new job but much lower pay. I had been struggling before. I would like to file bankruptcy on three credit cards totalling $ 11,500 and a personal unsecured loan of $ 6,500. I have a car loan, car was purchased Nov 2001 for $14,100 owe $13,850. I would like to keep car loan. If I filed, would I effect my spouse's interest in home I am joint owner? He is not on any other debts that I would like to file against. I have a home that is a co-op, only own a share interest in it, no deed. I am presently current on everything but just can't see being able to keep up with new pay. My new income per month will be approximately $ 1,400 net. My credit bills equal $956 per month. My rent/maintenance fee is $ 358.00. My utilities are $ 150. My car insurance is $ 80.I would like to eliminate $ 350 per month on the credit bills (personal unsecured loan and 3 credit cards) through bankruptcy. Can I? I'm not worried about my credit being ruined.Want to keep car and one loan secured by my sister's savings.Possible? Becoming desperate and depressed. Please help


Asked on 1/28/02, 12:12 am

1 Answer from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

Re: Should I or can I file bankruptcy?

Short answer --- Yes, please file. If will improve your emotional and financial situation.

You are essentially asking if you have enough debt to necessitate or qualify for a bankruptcy filing. The Bankruptcy Code does not require a minimum amount of debt and currently there are no limitations to the amount of monthly income you can receive. Many people have the impression that they must be destitute in order to "qualify" for bankruptcy. This is not the case. If your income is high enough that it exceeds your necessary monthly expense (not including payments on credit cards)substantially then you would probably need to file under Chapter 13 instead of Chapter 7 and repay a portion of your debts. In your particular situation I don't believe your monthly income is high enough to warrant a Chapter 13 filing. You would file for a complete "discharge" (a bankruptcy term which means wipeout or erase) under Chapter 7.

Your filing should not effect your Husband's interest in the house except that after the conclusion of your bankruptcy case he would be fully responsible for the debt on the home. You would be entitled to keep your car provided you continued to make the monthly car payment.

I believe a fresh start you help you tremendously. If you reside in Pittsburgh or Philadelphia I would be happy to serve you. ph. (800) 303-0720

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Answered on 1/28/02, 10:09 am


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