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Archive for November, 2010|Monthly archive page

Bankruptcy Filings Up Nearly 14%

In Uncategorized on November 18, 2010 at 8:46 am

New bankruptcy cases increased 13.8% over the last year. This continues a trend that started several years ago. Since 2006, new bankruptcy case filings have increased. Expect the case filings to rise during the next year.

Its not difficult to understand why this is happening. High unemployment, foreclosure and credit card payment defaults also continue to go up. People need protection from creditors because their income doesn’t keep up with expenses.

How Much Can You Earn And File Chapter 7?

In Uncategorized on November 11, 2010 at 9:50 am

To qualify for chapter 7 bankruptcy, you must prove you cannot afford to make payments on your debts. Bankruptcy law presumes that if your income is low enough you can receive a chapter 7 discharge of debts. The latest chart of annaul income looks like this:

Annual Income By Family Size

KY $36,999 (family of 1), $44,353 (2), $51,046 (3), $62,739 (4)

OH $40,091 (family of 1), $50,491 (2), $59,275 (3), $71,453 (4)

*Add $7,500 for each additional person in the family.

If, for example, you have a family of four in Kentucky and earn under $62,739, you should qualify for chapter 7. Everyone must file a monthly budget showing monthly expenses. The court examines the monthly expenses to determine if you truly cannot afford to pay back part of your debts.

If your income is more than amounts listed above, you have to show the court you can’t afford to pay back even part of your debts. You can do it, but you must persuade the court that your circumstances are exceptional. If that is not possible, I recommend filing a chapter 13 banrkuptcy. With chapter 13, you ask the court to approve a monthly payment on your debts

Latest Foreclosure Stats Look Bleak

In Uncategorized on November 2, 2010 at 8:32 am

The latest statistics in the housing market are bleak: permanent loan modifications in September were at their lowest number since the start of the goverment program; home sales fell sharply compared to 2009 levels; home prices are falling again after a period of holding steady; 4.4 milllion homeowners are in severe default on mortgage payments but not yet in foreclosure.