a friend of mine is in a jam, she has been working for ten yr, and about 2 yrs ago she bought her first house and now the way the housing market is her house lost alot of value, so she can refi and with all of her bills, it getting hard for her to make her payment, and she might have to go bankrupt in order not to lose her house and car. so if anyone out there knows anything about bankruptcy please let me know so i could help my friend. thank you
2007-05-28 07:57:58 · 4 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
Even if she does declare bankruptcy, she may still lose her house and car depending on what your state allows you to keep. There are basically two types of bankruptcy which could apply:
Chapter 13: Reorganization, this would mean that you make a list of your debts, assets and incomes and come up with a court ordered payment plan to pay off debts.
Chapter 7: Liquidation, your assets that are exempt under state law are sold off and the proceeds are used to pay off whatever debts you have. All debts that can be dismissed are dismissed.
I would advise her to talk to a credit counselor before considering bankruptcy as bankruptcy has a very negative impact on your credit rating and may prevent her from receiving credit to buy a house or a car for years to come. There may be ways for her to come up with a monthly budget, eliminate unnecessary expenses and pay her debts without bankruptcy. I would use bankruptcy only as the last resort.
2007-05-28 08:20:47 · answer #1 · answered by msi_cord 7 · 0⤊ 0⤋
For a very similar situation a found a great solution at: HTTP://CREDIT.SALESQUOTES.INFO
RE Can anyone give me some sound advice on bankruptcy?
a friend of mine is in a jam, she has been working for ten yr, and about 2 yrs ago she bought her first house and now the way the housing market is her house lost alot of value, so ...show more
2014-09-23 07:23:47 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Can anyone give me some sound advice on bankruptcy?
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2015-01-01 18:32:08 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Don't go bankrupt. Get ahold of one of the credit councelors who can help her bring her payments down where she can pay them.
2007-05-28 08:02:57 · answer #4 · answered by clbinmo 6 · 0⤊ 0⤋