Has anyone ever filed bankrupcy before? Do they take and sell your things when you file? I'm filing chapter7

Question

Anyone knowledgable about chapter 7 bankrupcy?

Answer 1

The laws differ from state to state, your attorney could give you more details. I know in my state, you're not allowed to keep recreational vehicles or sporting goods or personal computers. The court can order those sold and the money from them applied to your debts.

You are allowed to keep a certain amount of exemptions in the form of household goods and personal items (clothing, etc.) and usually one car. If you owe money on the car or if there are any credit cards or such you want to keep, you can reaffirm the debt. They're still listed in the bankruptcy, but stated that you're keeping them and going to continue making the payments on them. You can usually keep your house, unless you own some huge house that's beyond your means.

The new bankruptcy laws have made it so anyone filing bankruptcy on credit card debt who are capable of paying up to $200 a month or so are required to file chapter 13 and go on a payment schedule. You can no longer just wipe out credit card debts with a chapter 7 bankruptcy.

Answer 2

No they don't take anything unless its a car or something of value like that. Jewelry stores might want their jewelry back but they won't come looking for it. Just from experience. Try not to file. It will haunt you for the next 10 years. There are other options. I'd look into those first before I'd file.

Answer 3

I would not file a chapter 7, it will haunt you for a long time. What I would do, is go to my creditors explain my situation and ask them for a repayment plan. Most creditors will work with you if you are willing. Most creditors will suspend the interest, etc. If you have 1 creditor who will not work with you, do not pay this creditor anything, make this creditor take you to court. (Usually they will not do this) Usually this creditor will see that you are making regular payments to your other creditors and will fall in line, if not the court will look at the record you have established with your other creditors and sometimes will order the unwilling creditor to accept a lower payment and suspend interest for a while.