He went to an attorney in Manhattan to stop the foreclosure sale of an investment property in Brooklyn. The attorney filed a chapter 13 case, failing to recognize that the client did not quilify for chapter 13 (owning three properties, his total mortgages exceeced the secured debt ceiling for chapter 13). As a result, the bankruptcy case was dismissed and the client lost the benefit of the automatic stay, which had stopped the foreclosure.
This is a hard question, and the answer is "it depends".
Divorced at a young age, she raised her daughter on her own. Now retired and living in her daughter's home, she has accumulated $16,000 in credit card debt. Try as she may, she has been unable to pay off this debt with her pension and social security.
There are two basic bankruptcy tests for chapter 7 eligibility.
His accountant said to call me. He had cancer several years ago, and had been through a number of difficult operations. He lived off his credit cards through this difficult period. Although he eventually went back to work, his new employer had a mass layoff, leaving him out of work again. What are typical reasons people need to see a bankruptcy lawyer?