The only way a high income debtor can qualify for a Chapter 7 bankruptcy is by showing that there is less than $200 in discretionary income left after all bills are paid. A bankruptcy attorney can help you make that calculation.
A bankruptcy attorney can protect you from creditor harassment once you've filed for bankruptcy. If debt collectors continue to call and harass you after you've informed them of your filing, your attorney should be able to put a stop to it.
Any friends or relatives who helped you get financing by cosigning a loan agreement will be protected from your debt if you file Chapter 13. However, if you file Chapter 7, they may be liable for any debts you don't pay.
The moment you file bankruptcy, you are protected by the bankruptcy court. A stay is issued as soon as your bankruptcy case is filed. The stay blocks all creditors from taking any collection actions, including phone calls and letters.
The statute of limitations on debt varies considerably from state to state. If you have debts going back a number of years, your bankruptcy attorney can let you know which ones are valid and which ones should no longer be a concern.
The stigma associated with bankruptcy has lessened considerably in recent years, due to the decline in real estate values and the increase in professional job losses. Nearly ten percent of bankruptcy filers in 2010 earned more than $60,000 a year.