I previously asked if you would lose your house if you filed bankruptcy. I told my friend she could keep her house and possibly her vehicle, but then she grumbled that her furniture and computer and appliances were on credit. So i need to know if she will lose it all. It's not that I dont want her to move in with me it's just that I really don't have much room for her and her kids too. Please help i am desperate not to hurt our friendship.
2007-08-05 11:53:36 · 10 answers · asked by wondering 2 in Business & Finance ➔ Personal Finance
A lot depends on what type of bankrupcy you file. If she files chapter 13 then she can keep everything, she will have to work out a payment plan with through the court system that she can live up to.
If she files chapter 7 then she may loose the house or other posessions. She would have to itemize her possessions at yardsale prices. If there is enough value in the possessions to be more than the 'personal allowance' a person in bankrupcy is given - then the trustee administering the bankrupcy may ask her to sell the 'excess' personal belongings in order to pay her debt. Other than that, it doesnt matter that the items were bought on credit. Items bought on credit within 30-90 days prior to filing bankrupcy may have to be returned however. House is similar. She has a right to a portion of the equity in her home, but if there is excess equity then the trustee will ask that the house be sold to pay off debt.
Check for further info on what the allowances are for personal property and home equity. I cant not remember what the specific dollar values are. I am also not familiar with recent changes in the bankrupcy laws, I think it has recently become harder to discharge certain types of debt. This isnt something for her to jump into, she needs to do some extensive homework.
2007-08-05 12:42:06 · answer #1 · answered by JoinTheWigParty 1 · 0⤊ 0⤋
No, the debt on credit cards is unsecured, which means the furniture does not act as collateral for the loan. Since the credit card debt has no collateral backing, there is nothing for the credit companies to take. The credit card company will most likely charge off the debt or work out a payment plan.
2007-08-05 12:01:35 · answer #2 · answered by Anonymous · 0⤊ 0⤋
heck no--credit cards are not secured--which means nothing can be repossessed. but the best thing to do is to speak with an attorney who can advise. One easy way to find legal advice is on the american bar association's website. That is www.abanet.org. There you click on your state and then the county and the legal service in your area will come up.
2007-08-05 11:58:41 · answer #3 · answered by yanta_1999 2 · 1⤊ 0⤋
uh, you should NOT under any circumstances be telling a person what they are entitled to keep or not keep when they file for banruptcy. This is determined by the Trustee and bankruptcy proceeedings and a heck of a lot of other factors.
2007-08-05 12:32:01 · answer #4 · answered by zanthus 5 · 0⤊ 1⤋
Probably not, but that's not a good reason for her to buy things she can't afford to pay for.
She'll be able to keep her home and car only if she pays the payments on them.
2007-08-05 12:29:33 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
She won't lose them, what you buy on a credit card is not considered collateral, all that will happen is her credit rating will go into the toilet.
2007-08-05 12:01:40 · answer #6 · answered by Anonymous · 0⤊ 0⤋
That's a good question, she really should ask a lawyer, it all depends in what state shes filing, in Michigan where i reside they can and will in that situation, her best bet or your best bet is ask a lawyer.
2007-08-05 11:58:42 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I don't know but geeze if she can't pay for them she shouldn't be able to keep them.
2007-08-05 11:57:14 · answer #8 · answered by Sulla 4 · 0⤊ 0⤋
nope
2007-08-05 12:04:41 · answer #9 · answered by angel88z 2 · 0⤊ 0⤋
no
2007-08-05 11:56:10 · answer #10 · answered by skcs11 7 · 0⤊ 0⤋