Legal Question in Bankruptcy in Massachusetts

chapter 7 or consolidate?

My 25 year old son went to see an attorney for debt consolidation. He has about $25,000 worth of debt and makes $45,000 a year working full time.

He has been making double and triple of the minimum payments but is frustrated that the debt is not going down. His credit is still very good and he has over $60,000 of available credit.

This attorney recommended chapter 7and told him that if he used his credit cards at all, from this day forward, he would go to jail! He's afraid to buy a tank of gas!

Doesn't this sound drastic? Both the chapter 7 AND the ''jail'' part?

Are there any ''real'' debt consolidation companies out there?

I would like to tell him that it's ''ok'' to REASONABLY still use his credit (gas, a car repair) but don't want to give him bad advise! Any input would be greatly appreciated.


Asked on 2/01/08, 8:30 am

1 Answer from Attorneys
Richard Ravosa Law Offices of Richard S. Ravosa

Re: chapter 7 or consolidate?

If the income that you have given is his gorss income and he is not married he woudl qualify for a Chapter 7. Jail does not sound realistic unless he committed some type of fraud. If he intentionally ran up the debt and then filed that is another thing. It is up to the creditor though to prove whether their was fraud. If he has trying to pay his credit cards and jsut can't make the minimum payments it sounds like a routine case. We offer free consultations.

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Answered on 2/01/08, 8:59 am


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