Does anyone know if I claim bancrupcy can I keep my house and my car and continue making payments on them?

Answer 1

Even on a Chap 7 BK, you can still redeclare debts, such as houses and car payments. It's really the best way to rebuild your credit afterward.

Answer 2

You can keep your home, up to at least $125,000 net value (equity not total value) in a Ch. 7 BK.

Homestead:

The exemption for a homestead is limited to $125,000 if the property was acquired within the previous 1215 day (3.3 years). The cap is not applicable to any interest transferred from a debtor's previous principal residence (which was acquired prior to the beginning of such 1215-day period) ;

The value of the state homestead exemption is reduced by any addition to the value brought about on account of a disposition of nonexempt property made by the debtor (made with the intent to hinder, delay, or defraud creditors) during the 10 years prior to the bankruptcy filing.

An absolute $125,000 homestead cap applies if either:

The court determines that the debtor has beeen convicted of a felony demonstrating that the filing of the case was a abuse of the provision of the Bankruptcy Code; or
The debtor owes a debt arising from a violation of federal or state securities laws, fiduciary fraud, racketeering, or crimes or intentional torts that caused serious bodily injury or death in the preceeding 5 years. NOTE: This limitation is inapplicable if the homestead property is "reasonably necessary for the support of the debtor and any dependent of the debtor."

For more information on exemptions in your state, see the link under sources. Whether you can keep your car depends on the net value. You can reaffirm debt and continue to pay as you always have provided the value of the car and home do not exceed the allowable exemptions.

If you exceed the exemptions allowed in a Ch. 7 bankruptcy, you can still file a Ch. 13 BK and repay a portion of your debt over 3-5 years, discharging the remaining unsecured debt.

Good luck.

Answer 3

yes,but I believe since the bankruptcy laws have changed it is not likely that you can walk away from your debts through bankruptcy anymore,the court would just set up a payment plan and put a bankruptcy on your credit for the next 10 years...what would be a better avenue is to call your debtors each individually and try to settle the debts for 30% of what you owe them...I believe if you get served anything by courts,you need to file a response and they will generally not pursue them,especially if you counter claim against them...but I am not a professional attorney or counselour and my opinion is not to be constued as advice...seek professional help,however another opinion of mine is that most credit help and attorneys are now not much help since the laws have changed against debtors...

Answer 4

The creditors will most likely make you sell your house and your car if it has a loan on it,and the value is over about $3000.
Depending on the amount of credit you are trying to write off.Selling your assets will pay off your loans and give you a fresh start.
If you got to keep your house and all your savings then everyone in America would charge $100,000 on their credit cards,then apply for bankruptcy.
Filing for bankruptcy is a last resort!
Best of luck

Answer 5

I was able to keep my car with my Chapter 7 bankruptcy. I believe an exception needs to be filed with the bankruptcy and there has to be reason to keep it. My reason was I working 2 jobs, 1 of which was not accessible by public transportation. I'm not sure about the house. Double check with your attorney

Answer 6

Yes you could. Either both chapter 7 or Chapter 13 allow you to go into payment plan pre-set by the courts.

Answer 7

get a lawyer specializing in this..you need one because of the court appointing a "executor" during this period..

the lawyer will give you a paperwork....the car will have a maximum estimated value and the same with the house...
you "May" have to downsize your car, and home to do this..if you claim bankruptcy before you downsize all the profit will go into the court to pay the debtors.

you will also be allowed to work..and there will be a maximum value on your pay or the remainder goes into court to pay the debts........

call a lawyer........

Answer 8

Yes you can. I believe it's Chapter 13 that you can file. Chapter 7 won't let you keep your house or car, if I am not mistaking. It's a nightmare to file bankruptcy. I thought about it, but then I thought about all the nightmares behind it too. Contact a bankruptcy attorney for more information.

Answer 9

That depends upon the state you live in and how much equity you have in your home. The reason that the Enron ******* bought homes in FL for millions with their stolen $$$ is that FL allows an unlimited equity in a personal residence. Each state has it's own rules.

Answer 10

Yes you can. You have to list them on the bankruptcy and your lawyer will give you this paper you give to the people you are buying those items from to let them know you listed them but you are not filing against them and you wish to continue paying them. It can be done. I did it. I filed Chapter 7.