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Non Bankruptcy Options

Home » Videos » Non Bankruptcy Options

Hello, this is Roger Ghai and I practice bankruptcy law in the Kennesaw, Marietta and Acworth areas. I wanted to speak this morning about what happens if you want to file a chapter seven case, but you don’t qualify and you just don’t want to file a chapter 13 bankruptcy repayment plan. Well, you might not qualify for filing a chapter seven bankruptcy case for several reasons. The first reason of course would be that maybe you and your wife both have income into the household and she’s not filing the bankruptcy case with you, but in the eyes of the law, the household income is considered for the purpose of determining whether you can file a bankruptcy case. So depending on the circumstance, we might have to do a timing of your bankruptcy case to make sure that you can qualify for chapter seven and get a fresh financial start.
So in the past, I’ve had a case or cases where I’ve actually had to advise one spouse to stop working. The reason for this, I’ll give you an example, is let’s say for example that there was credit card debt of $110,000 or $120,000, which actually I’ve had cases like that, and then there was joint household income, which would preclude one party from filing the bankruptcy case. But if we had less household income, then what would happen is that over the course of time, maybe six months, if the other party stopped working for four or five months, then we can go ahead and file a bankruptcy case legally, ethically, and then get rid of the $100,000 or so of debt.
Now, the reason that we would want to do this is this, if let’s say you’ve got $100,000 or $120,000 a year trying to get rid of, okay, that’s a lot of money. So to get rid of that debt or to repay that debt really from an income perspective, you have to earn maybe $160,000, $170,000 just to repay that $120,000. Probably more likely you’re going to have to earn about $180,000 to pay the $120,000. And it could be more. So does it make sense for the non-filing spouse to continue working and making $50,000 a year or $70,000 a year, and then having to continue to do that for year after year after year in order to pay the $180,000 or $120,000 of debt?
So, no, it really doesn’t. And so a lot of times, although it sounds terrible to advise a client like that, for one party to quit their employment, it actually benefits the family overall in the longterm because if the spouse continues to work for $50,000 a year, and you’ve got the debt of $120,000 that you’re trying to get rid of, even though the spouse is earning $50,000 a year, it’s not the whole $50,000 that they’re going to be able to apply toward that $120,000 worth of debt because they have to pay income tax on that $50,000 that they’re earning.
So maybe they’re actually only netting $40,000 at best or $30,000, $35,000 at best. So if you’re netting $35,000 a year and then you’ve got $120,000 worth of debt, basically, the person has to continue working for about four years and applying every single penny of that $35,000 to the debt, not including interest, to be able to eliminate the debt, versus if the person just stops their employment for a while, four or five, six months, we can file the bankruptcy case, they can find another job and then the family can be debt free.
So if you have questions about the timing of the filing of the bankruptcy and other matters like that, feel free to give me a call at 7707921000.

Bankruptcy Blog Posts:

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Chapter 7 Bankruptcy and Chapter 13 Bankruptcy Comparison

Good Morning, this is Roger Ghai of www.Chapter7attorneys.com. I wanted to do a little informational video on bankruptcy options. In particular, Chapter 7 bankruptcy options and Chapter 13 bankruptcy

Filing Chapter 7 Bankruptcy – January 2010 Talk Law Radio Show Transcript

Janice: Good afternoon Atlanta and welcome to News & Talk 1380 WAOK. This is Janice Mathis and we’re here this afternoon and every Sat. afternoon at 1pm to talk with one of our lawyers who’s

Difference Between Chapter 13 & Chapter 7 Bankruptcy – March 2010 Talk Law Radio Show Transcript

Janice: Good afternoon Atlanta and welcome to Legal Talk. This is Janice Mathis. This is my favorite hour of the weekend. I learn something new every weekend talking to these brilliant lawyers we have

Bankruptcy FAQ:

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Can Creditors Be Sued For Trying To Collect Debt After You File For Bankruptcy
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The injunction is formally issued pursuant to 11 U.S.C. 362(a), commonly referred to as the Automatic Stay provision of the bankruptcy code, and it prohibits creditors from making further attempts to

Can Your Home Be Sold In Bankruptcy If You Don’t File Bankruptcy But Your Spouse Files Bankruptcy?
Can Your Home Be Sold In Bankruptcy If You Don’t File Bankruptcy But Your Spouse Files Bankruptcy?

In a recent case, In re Beck Mrs. Beck filed for bankruptcy protection but her husband did not. Together they owned a property which was valued at about $530,000.00. The property had actually been in

Can You Claim A Homestead Exemption In A Home You Do Not Live In?
Can You Claim A Homestead Exemption In A Home You Do Not Live In?

The Chapter 7 trustee objected to Mrs. Goulakos’s claim of exemption because she did not live in the house and because she was not the one who claimed the homestead exemption under Massachusetts

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      Ghai Law Firm
      Call for a free consultation:
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      LAW OFFICES OF ROGER GHAI

      1301 SHILOH RD NW STE 430

      KENNESAW GA   30144

      Mon-Fri: 9AM - 6PM

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      • ABOUT
        • Testimonials
        • Join Us
      • Practice Areas
        • Personal Injury
          • Pedestrian Accident
          • Car Accidents
            • Speeding Accident
            • Drinking and Driving Accidents
            • Left Hand Turn Accident
            • Rear-End Collision
            • Reckless Driving Accident
            • Uber Accidents
            • Hit-and-Run Accidents
            • Texting and Driving Accident
              • Texting and Driving Under 18
          • Truck Accident
            • Lane Usage Accident
            • Traumatic Brain Injury
          • Product Liability
            • Defective Drugs
            • Defective Medical Device
          • Premises Liability
            • Slip and Fall Accidents
          • Wrongful Death
          • Dog Bite
        • Bankruptcy
          • Debt Relief
          • Credit Card Debt
          • Chapter 13 Bankruptcy
          • Chapter 7 Bankruptcy
          • Foreclosure Bankruptcy
          • Free Legal Case Review
          • Medical Bills Bankruptcy
          • Rebuild Your Credit
          • Wage Garnishments
      • Areas We Serve
        • Kennesaw Personal Injury Lawyer
          • Kennesaw Bankruptcy Lawyer
        • Acworth Personal Injury Lawyer
          • Acworth Bankruptcy Lawyer
        • Marietta Personal Injury Lawyer
          • Marietta Bankruptcy Lawyer
        • Smyrna Personal Injury Lawyer
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