Hello all, I am glad that I stubled across this site.
Long story short I was hurt on the job, and currently recieve Workers Comp and SS disability. To make matters worse we then lost everything in Katrina and had to start over with my income substantially reduced, and my wife's income also reduced due to getting a job that paid less than her pre-hurricane employment.
We eventually fell behind on our credit card payments, and owe 3 credit card companies a lot of money. We just recieved a summons on one account and are being sued for $7,000+ 2 years of interest at 8%. The total amount of bad debt that we have is in the neighborhood of 14k or so.
In addition to that I have some small unpaid medical bills that WC hasn't covered, but these are minor. I also have a balance of about $700 with my credit card. Our biggest expense, besides fuel is our car that we have a ton of negative equity on. Prior to the storm I made several bad vehicle purchases, and today we have a $500 a month car note.
We fall below the median income for our state, and we are seriously considering filing chapter 7. Here are our questions:
1. If we file for chapter 7 do we have to keep the car, or can that be filed as well?
2. Will the bankruptcy stop the pending litigation? I tried to buy myself some time by disputing the debt.
3. Is $900 a reasonable price to file bankruptcy. This is the total price quoted to us by the lawyer.
Thanks for your help.