There are two basic programs that are available for consumers who are looking to file bankruptcy.  The first is called Chapter 7 bankruptcy which is complete, fresh start bankruptcy.  Basically what a Chapter 7 bankruptcy will do for you is eliminate all credit card debt, medical debt, personal loans, cash advances and payday loans and some tax debt for individuals.  Some of the things that Chapter 7 will not eliminate are student loans and recent income tax debt.

This is the case of Guermo Gomez who comes to me from Franklin Park, Illinois seeking debt relief.  Mr. Gomez has never filed a bankruptcy before.  He does not own any real estate and he currently lives with his family.  He rents from his father on a month to month lease.  He does not own or operate a vehicle.  He has a checking and savings account with very little in it, minor household goods and very little in the way of clothing.  He does have a 401(k) which is protected in the amount of $20,000.

This is the case of Darva Simmons who comes from Elmhurst, Illinois seeking debt relief.  Ms. Simmons file a Chapter 7 bankruptcy over eight years ago so she is eligible for another Chapter 7 should that be necessary.  She owns no real estate.  She is renting a month-to-month lease and the landlord lives in Elmhurst, Illinois.  She has a 2010 Kia Soul that is co-owned and she would like to keep paying for that vehicle.  She is currently up to date.  Her monthly payment is $425 and she owes about $12,000 on that vehicle.

This is the case of Dan and Emily Rady who come to me from Chicago, Illinois.  They are here to talk to me about Chapter 7 or Chapter 13 bankruptcy.

The hottest topic in South Florida is the real estate "short sale." Actually a short sale is nothing new, but it now quite the vogue. A short sale basically means that the mortgage lender (or lenders) agree to satisfy its mortgage lien and allow the transfer of the real estate in exchange for receipt of less than the full amount of the amount due on its mortgage loan. In a short sale, the real estate is sold to a buyer who obtains a new mortgage.

Be careful if you are contemplating a bankruptcy and you hold title to real property.  Even if you don’t believe you have any equitable interest in the home, a bankruptcy trustee may disagree with you.

In all chapter 7 individual cases where consumer debts are at issue, the persons filing for chapter 7 bankruptcy are subject to the Chapter 7 Means Test within official Bankruptcy Form 22.  Again the means test, in short, determines whether or not you have too much disposable income for purposes of filing for chapter 7 bankruptcy.

Should I Get a Debt Consolidation Loan to Pay Off My Credit Cards? Alan Henry Dear Lifehacker,

I.          Introduction
a.         Why do people file for bankruptcy today?
1.      Credit card debt2.      Unemployment3.   Business reversals 4.   Real estate foreclosures5.   High housing costs 6.   Student loans 7.   Divorce 8.   Medical bills and illness
b.         The Bankruptcy Code and New York State Debtor and Creditor Law provide many remedies to real estate issues and other debtor/creditor problems facing individuals in 2013 in New York State. 

This is the case of Monique White who comes to me from Chicago, Illinois seeking debt relief.  This white did a Chapter 7 back in 2012 but the case was dismissed so she never received a discharge.  She owns no real estate, she’s not a homeowner and she is currently living in a monthly rental situation on a property that is currently in foreclosure.  She has a 2006 Chevy HHR which is financed by Black Hawk Financial.  She is up to date on that payment and she wants to remain current on it.