Legal Question in Bankruptcy in Rhode Island

I am clueless

I leased a car out of memphis tn and I thought i had coverage but was only insured on someone else's car. My car was completely totalled due to the flood in houston tx on June 9/01. I cannot pay for the car and have also acquired other charges i cannot afford to pay. I would like to file chapter 7 but have no idea how to go about it

Asked on 2/06/02, 6:06 pm

1 Answer from Attorneys

Andrew Nichols Law Office of Andrew B. Nichols

Re: I am clueless

Short answer -- You can probably file for bankruptcy relief under Chapter 7 and be relieved of all of these debts.

The Bankruptcy Code does not require a minimum amount of debt and currently there are no limitations to the amount of monthly income you can receive. Many people have the impression that they must be destitute in order to "qualify" for bankruptcy. This is not the case. If your income is high enough that it exceeds your necessary monthly expense (not including payments on credit cards)substantially then you would probably need to file under Chapter 13 instead of Chapter 7 and repay a portion of your debts. I would need to evaluate your particular situation but most people I encounter don't have monthly income high enough to warrant a Chapter 13 filing. Most people should file for a complete "discharge" (a bankruptcy term which means wipeout or erase) under Chapter 7. Please feel free to call me to discuss your situation in greater detail. ph. (800) 303-0720

Read more
Answered on 2/14/02, 8:29 pm

Related Questions & Answers

More Bankruptcy Law questions and answers in Rhode Island