2007-05-19 06:16:35 · 6 answers · asked by jmax 2 in Business & Finance ➔ Personal Finance
I am actually preparing a Chapter 7 filing for myself after a failed business venture. Here is what my attorney told me:
Your car and house are considered exempt. You must, however, reaffirm your debt in order to keep them. For example, we plan to reaffirm our mortgage so we will keep the house as long as we continue to make timely payments. If we did not want to keep the one car that is financed, we could elect to give it back. We are going to reaffirm and will keep the car. You are allowed up to 2 cars. The trustee cannot make you sell either car to satisfy creditors.
2007-05-19 08:31:44 · answer #1 · answered by TxAggie1991 2 · 0⤊ 0⤋
Generally yes, though declaring bankruptcy is much more difficult now than it was a few years ago. The courts won't leave you homeless, but you'll have to come up with a plan to pay people like your mortgage company or you will be out of the house.
The car is not protected -wave goodbye to that.
2007-05-19 06:19:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I don't know if bankruptcy varies from state to state but my friend in Atlanat, Ga. just filed for it and he got to choose exactly what he wanted on the bankruptcy which was his car and student loans. (well the student loans are government issued anyways so you can't bankrupt those). So if your car and house are paid off then I think you can. Just ask a credit counseling service.
2007-05-19 06:22:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It depends on what the laws are where you live. Usually, you are allowed to keep some equity in your home and some equity in an automobile, but how much varies widely from state to state. If you have too much equity in either, according to your state, you may be forced to sell them to satisfy other creditors.
2007-05-19 08:26:31 · answer #4 · answered by aj485 5 · 0⤊ 0⤋
It's totally out of your hands and into the hands of a trustee. You are only allowed so much equity in home and/or car or you have to arrange to get the money to repay your creditors. It's not going to work if you have thousands of dollars of equity and expect your creditors not to be repaid.
2007-05-19 06:36:34 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Bankrupcy laws vary from one jurisdiction to another.
Generally, if you declare bankrupcy, your home, *a* vehice, and the tools of your trade are inviolate and can not be touched. There are, however, exceptions. Check with your local courts.
2007-05-19 07:02:00 · answer #6 · answered by jcurrieii 7 · 0⤊ 0⤋