Due to my loss of employment and my husband's medical conditions we are unable to continue paying our credit card debt. The only income that we have is my husband's disability and retirement (combined total of $1600/mo after health insurance & medicare premium). We purchased our home in April 2012 for $25,000, so we don't have a mortgage. We purchased the home by selling our larger home in Alabama (we could not afford to keep it). Most of the debt is in my name but there is some in my husband's name. We plan to file Chapter 7 but we are tight on funds so we were hoping to get advice on how to minimize the cost of filing. We have no stocks, bonds, 401k, life insurance and $2000 in our bank account. We do not have any debt except credit cards. Thank you very much for your time and assistance.
2 Answers from Attorneys
Right off the bat, the red flag is that if you own your house free and clear there is a danger of losing it. There are lawyers in your area who will offer a free consultation. Use it. Sometimes minimizing the cost of legal action is very, very expensive.
Owning your house free and clear may be the problem. Depending on the value, a chapter 7 may put your home at risk. If you can prove it's only worth $25,000, you may be okay. I'd need to sit down with you and see all your numbers to know if Chapter 7 would work or be problematic. Georgia allows a Chapter 7 exemption on your home of about $43,000 if jointly owned (half that if in one name) but only if you have lived in Georgia two years. The answer is far more complex if you moved here more recently.
Feel free to call me at 404-768-3509. If you'll complete my Chapter 7 worksheet at www.glenashman.com and bring that and a copy of this post with you, I'll review your worksheet for free and then be glad to help you in chapter 7 for a reasonable fee. (Beware doing this just on price - you also want experienced counsel as your home is at stake.)
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