Also, the BK reform wasn't as bad as most people think. Most people who qualified for Ch7 (Liquidation) before the BK Reform are still eligible today. They can take the online "means test" offered through NOLO to see if they qualify: http://www.nolo.com/legal-encyclopedia/chapter-7-bankruptcy-means-test-eligibility-29907.html
Timing is everything! NOLO advises bankruptcy filers with primarily consumer debts, not business debts, to take the means test. To take the means test, you must first determine whether your income is more or less than the median income in your state. If you earn more than the median, you must figure out whether you would have enough left over, after subtracting certain expenses, to repay some of your debt.
NOLO advises those with larger incomes to ensure to use the last six months of income when it was at its lowest in order to pass the means test. That's how they calculate the median in your state and whether or not you qualify for Ch7. The online Guaranteed Bankruptcy service asks that you do a means test, too. NOLO advises to calculate it this way by taking the last six months of income and divide that by 12.
Nolo is a godsend! They are consumer Attorneys who really care about ordinary folks.
And I really do want to help people who were in the same financial straits we were. I know how horrible and frightening it is, and I know how liberating and wonderful it is afterward. People who have gone through BK7 can immediately begin building their credit since, even before the Discharge, we received pre-approved offers from credit cards and have three each today, building our credit for almost a year. Oh, and we got a car loan for my daughter, too. True, it's expensive, but she now has a brand-new Honda Fit Sport with all the bells and whistles, and she pays the monthly payment herself so it's no skin off our backs.
As we were waiting for our turn at the Creditors Meeting, my husband looked increasingly worried at me as one after the other, people and their counselors, were being turned away. Some had attorneys with them who didn't even bother to tell them about bringing two years of tax returns! I mean, really? Btw, I learned that at NOLO, too.
My husband, no hero when it comes to things like this, was scared, but I was pretty confident. When it was our turn and after we were sworn in, the Trustee asked for our income tax returns and I handed them to her. She asked the usual questions like, "Have you listed all your information to the best of your knowledge?" Then it was over, she smiled and shook our hands, and said, "You'll receive your discharge in 4-6 weeks." All in all the Creditors Meeting only took about 10 mins and we were finally free to start fresh, unburdened by past debt.
= new reply since forum marked as read