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  1. #1
    Join Date
    Feb 2011
    Posts
    2

    Default Credit Card Debt and Bankruptcy

    My question involves bankruptcy in the state of: Michigan.

    I have a number of questions concerning bankruptcy, and creditors. If anyone could help I would greatly appreciate it.

    1. I have about $12,000 in credit card debt, is there a minimum amount owed in order to file for bankruptcy?

    2. From the time you default on your credit cards how long until they take you to court to garnish your wages? Normally what percentage of your check gets garnished?

    3. Can you be turned down for bankruptcy?

    4. The only thing I own worth of value is my car, however I still am making payments on it. Can that be taken away when I file?

    Thanks in advance.

  2. #2
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: Credit Card Debt and Bankruptcy

    1. There's no minimum, but if that's your only debt some people would advise you not to file for what is a relatively low amount.

    2. It really varies - it might be a matter of months, or it could take years. The max they can garnish varies by State, and in MI the max is 25% of your check.

    3. Not "turned down", no - but whether you would qualify for Ch 7 versus 13 (the first wipes out the debt, the second throws you into a repayment plan) would depend on a few factors. And also the nature of the debt would be important. For example most taxes cannot be discharged (though it is not impossible to do so), student loans etc., child support obligations - these things are generally not dischargeable.

    4. You may be able to "reaffirm" the car.

  3. #3
    Join Date
    Feb 2011
    Posts
    2

    Default Re: Credit Card Debt and Bankruptcy

    One of the main reasons I'm considering this option is because the payment options were still a bit too much for my budget. Plus I would just like to be free of the phone calls and the letters and move on. Are there anymore fee's and such to pay besides the filing fee? Now by reaffirming my car there wouldn't be a situation where it would be taken away?

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