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When is filing bankruptcy a good idea?

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    Fox News legal analyst Bob Massi weighs in

  • Duration 4:13
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Thousands of Americans are going deep into debt trying to pay off their mortgages so if you can't pay it off.

She do you declare bankruptcy.

Fox News legal analyst Bob Massi joins us from Las Vegas to -- and yes sir.

Good morning -- all right we're gonna talk a little bit about how personal bankruptcy.

Hot today we're gonna talk about chapter seven what's the difference between chapter seven chapter thirteen.

They were about to -- yet.

No they're not chapter seven Steve means -- your liabilities are so excessive.

I think your assets are minimal if not gone that you qualify for chapter seven were completely wipes out all of your debts and one of the things I want to let our.

Viewers know today is that there is life after bankruptcy it's not the kiss of death.

And it's a way unfortunately but yet it's there to rebuild.

Your dreams from what happened over the last couple years which is why we're going down this road not to give optimism hope to people in the future right why would somebody then declared.

Chapter seven bankruptcy.

What what happened Stevie you know you know I've been talking up for quite awhile how.

People have lost everything they've had they used their Irish their Keogh plans -- for a one case.

And most importantly they've gone through credit cards they borrowed against credit cards make mortgage payments.

-- and get to the point Steve -- illicit.

I've got to hit the restart button I just can't keep making these minimum payments that I -- 2030000.

Dollars.

And so I bankruptcy chapter seven bankruptcy although it's the last resort right it's something that people need to look at if -- -- is so extensive absolutely can anybody.

Declared chapter seven bankruptcy.

Not really 2005.

Congress sort of change bankruptcy laws -- use what's called a means test the which means dependent upon.

-- from parts of the country is that what the salaries are.

For example in Vegas that means test if you're single.

And you make 44000 a year -- -- you could qualify if you make too much you can't if you're married and make more than 70000.

Dollars a year you may -- qualify for seven if in other words if there's disposable income there the bankruptcy laws said wait a second.

And I think you're eligible for seven there may be other types of bankruptcies yes so there's always a means test and that's why you have to seek out of the bankruptcy -- get that.

Answer -- okay so that's probably the first step what else do you do to file chapter seven.

Well here's a thing.

You gotta fight somebody good now people say to me Bob how I -- the bankruptcy lawyer first of all I've really if you have a family lawyer.

Always go your -- lawyers say who's good in bankruptcy.

There's nothing wrong necessarily really Steve of those men and women that advertise on TV it just means they have the revenue -- -- but there's no there's a directory called Martin -- hobble.

For our viewers it's Martinsville and they -- TI and the -- Hubble.

Dot com that is that's a legal directory -- could be used.

Where you go into where you live the city where you live that you look for an eight V lawyer that's is an Applebee's in victory that means they've rated very high.

And that saved by the bankruptcy -- to help you get through this stuff.

Good advice you know Bob once upon a time.

Declare personal bankruptcy was just you know so shameful and would being bring disrespect your family.

But now hundreds of thousands of people are doing it it doesn't still have the same stigma does it.

It's a way of life now Steve it's unfortunate that because of this real estate crisis we've been covering it's become a consequence.

Of deficiency judgments credit card debts people losing everything.

And honestly Steve yes it is on your credit report -- does -- for many years but lenders are adjusting to this Steve lenders are basically saying.

I know people -- the file bankruptcy couple years ago -- driving a new car they have credit courts I want her viewers to know.

Don't be so afraid of it but it is only the last resort.

But don't get so bogged down that you just live for paying debt there he reach a point we can't handle it.

Get a good bankruptcy or to tell you -- -- -- that's what you need to do.

Because life does go on and you just explain that's currently Bob Massi reporting from Las Vegas thank you very much by the way folks if you got a question for.

Bob good -- web site -- -- dot com and click on the shattered dreams logo and we'll show you how to ask mr.

-- question.

We might use it --

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