WANNA KNOW WHAT THE "TYPICAL" US BANKRUPTCY CASE LOOKS LIKE...?
TRY THIS:
1. A RESIDENCE WITH TWO MORTGAGES...ONE $140,000+ AND A SMALLER "SECOND" FOR BETWEEN $20,000 AND $50,000. (PRICES IN YOUR AREA MAY VARY...ESPECIALLY ON THE COASTS...THERE JUST DOUBLE IT!)
2. ABOUT 3 OR 4 MAXED OUT BANK CREDIT CARDS...SAY ABOUT $20,000 TO $40,000.
3. SOME "SPECIALTY RETAILER" CREDIT CARDS...SAY ABOUT $5000 TO $10,000.
4. SOME BACK UTILITIES.
5. SOME BACK WATER BILLS AND REAL ESTATE TAXES.
6. ASSORTED MEDICAL BILLS...USUALLY LESS THAN $5000...MOST HAVE SOME KIND OF INSURANCE.
7 . ABOUT 4 CARS...ONE LEASED...ONE CAR ON PAYMENTS USUALLY ABOUT $400+...AND A COUPLE OF JUNKERS STILL RUNNING...
8. A LITTLE BIT OF JEWLRY CREDIT NOT MUCH ABOUT $800...
9. PERHAPS SOME BACK INSURANCE PAYMENTS.
10.. AND MAYBE A BOAT PAYMENT OR A SECOND "COTTAGE" PAYMENT...THESE ARE USUALLY LET GO...
THE TYPICAL INCOME IS ABOUT 70,000+ FOR A FAMILY OF FOUR...USUALLY WITHIN THE BAPCPA "MEANS TEST" TO CHOOSE EITHER CHAPTER 7 OR 13...
MOST CHAPTER 13s FAIL AND ARE CONVERTED TO CHAPTER 7s AT SOME POINT.
Why? Because the trouble is often long term and getting worse...not better. If it were an optimistic scenario chances are there would be an accomedation by the creditors and bankruptcy would never happen.
