Lyons, CO Bankruptcy Law Firms & Lawyers

She (in my view) should consider filing a Chapter 7 bankruptcy, have her credit card debt discharged. I know that may be hard for her to accept, but that probably is the best option at this point.

If you are considering a chapter 13 it's imperative to retain an attorney. Statistically speaking, the success rates for self represented debtors in a chapter 13 is less than 2%, and the statistics don't say out of that 2% how many are lawyers filing their own cases. Don't procrastinate, make an appointment with an attorney to discuss your situation. Only through an evaluation of your circumstances can advice be rendered as to whether this is a good option for you and the results you can hope to achieve. One way of looking at a chapter 13 is that it is a type of settlement of your debts but rather than needing to negotiate with the creditors as far as how much they will receive (in other words what percentage of what is owed they will actually be paid) that number instead comes from some calculations of your income, allowable expenses, non-exempt property, secured debt obligations, and unsecured priority claims. The added bonus is that whatever percentage of the debt will not be paid in a chapter 13 is discharged at the end AND is NOT taxable income. So the ultimate question is how much will you have to pay back? It could be a number between 0% to 100%. To figure this out, the attorney will need details about your circumstances to make the calculations. See someone at your earliest convenience as sometimes timing can make a difference, sometimes filing sooner is better than later, or the other way around.