Legal Question in Bankruptcy in Texas

Chapter 7

����I am thinking of filing for a chapter 7

The reason being is that I had transportation problems and had to purchase a new vehicle. I used two credit cards for the down payment. One for $3,000 and the other for $2,000 I've also had to take a $1,500 cash advance from another card in order to make ends meet due to my small business being very slow.

����������Also took out a $400 advance from another card. On top of that I've had to help my elderly parents with medical expenses (my father suffered a stroke, and my mother is wheel chair bound) and living expenses while myself having bought a house a year ago.

����������What I would like to know is how long should I wait before filing for a chapter 7?

Would using my credit cards so much and taking 2 cash advances in such a short time count against me? Also, I own a motorcycle with a clear title in my name. Would this be in danger?

����������I also have a credit card from the same bank that I hold a checking account in. Would my checking account be in jeopardy? Should I change banks?

�Thanks again!


Asked on 4/19/03, 11:24 pm

2 Answers from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

Re: Chapter 7

I believe you should file for relief under chapter 7. The cash advances are problematic but there are strategies to deal with them. It would be good to wait to file for at least 30 to 45 days. However, sometimes it is impossible to wait. I would certainly be willing to speak with you personally to discuss your particular situation. Also I do recommend that you cancel your checking account and open a new checking account at a small independent bank. Please feel free to give me a call. (214) 979-7330 or (800) 303-0720

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Answered on 4/21/03, 11:32 am
Cheryl Rivera Smith The Smith Law Firm

Re: Chapter 7

Many attorneys offer free initial consultations and I would call one to discuss your situation. However, it doesn't sound like you are in enough dire straights to qualify for bankruptcy relief. For your parents, I would get them on Medicaid asap, if you haven't already done so. This should take care of medications and all medical expenses if they qualify. To answer the question about the motorcycle, you are allowed to exempt one vehicle from a bankruptcy and it can be a motorcycle. If you are married and file for joint bankruptcy protection, your spouse can exempt the car and you can exempt the motorcycle. You can include whatever debts you want to liquidate in the bankruptcy petition and you can agree to pay whatever debts or credit cards you want to keep in place. Your lawyer will assist you in making these decisions. Best of luck.

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Answered on 4/20/03, 10:10 am


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