Do I file Bankruptcy or not?
Letter to “Ask Leon”
I currently live in Indiana. My husband and I have a total amount of credit card debt of around $4000.00. and we have about $2500 in payday loans. We do not own a home. We rent and we have 2 cars that we have loans on for the next two years. We do not want to lose our cars. We still owe about $30,000 total on both cars. We really want to eliminate the credit card debt and payday loans and medical bills. What would be the best way for us to file – Chapter 13 or 7? Would we be able to keep our cars?
To completely answer your question I would need extremely detailed information concerning your income and all of your necessary living expenses. That said, I will take a generalized approach to answering this. The overall amount of your unsecured debt is not much, but the fact that you have resorted to pay day loans tells me that you do have a serious debt problem. Because the amount of your “unsecured” debts is fairly low, it is my guess that the problem here isn’t the credit cards, but possibly is that you bought cars you just can’t afford. I would have liked to have known exactly what the credit card and pay day loan money was spent on? It may be that what you really need is to file Chapter 7 bankruptcy on all of your debt including the cars and turn them in, which is something I know you don’t want to hear. Please find a capable local attorney in this field right away and have a consultation. Most of us in this field charge nothing for such a consultation. Again, it really isn’t possible to guide you because I don’t have your income and expense data. Hopefully a way can be found for you to keep your cars.