Hello,
My father owns a home in Nevada(second) and another home in California(primary). The home in California is going into Foreclosure. My question is my father would like to know if he files for a bankruptcy and includes all his credit card debt which is aprx. $25k, will the bankrupcty court or judge make him take out equity/or sell his other home that is in Nevada to pay off the debts? I know the laws have changed and would appreciate any help on this.
Thank you all in advance,
Rudy
2007-08-21 09:29:46 · 3 answers · asked by rudolph_barton 2 in Business & Finance ➔ Personal Finance
ITMom is correct, except it sounds like she is talking about Chapter 7 instead of Chapter 11. Chapter 11 bankruptcy is for businesses or sole proprietorships with a much higher debt requirement.
He will likely have to go through Chapter 13 if his income exceeds the area median income for his primary residence.
Any information should be substantiated by qualified legal counsel.
2007-08-21 09:50:28 · answer #1 · answered by Anonymous · 1⤊ 0⤋
You are required to list ALL assets and debts in any bankruptcy. The recent changes in the law do not affect that fact. Unless he owes significantly more for the California home than it is worth, he is MUCH better off selling the house than going bankrupt or allowing a foreclosure.
2007-08-21 11:52:00 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
From what I understand there are two types of bankrupties that are common Chapter 11 and Chapter 13. Chapter 13 makes you pay the debt off over time. Chapter 11 you are no longer responsible for any of your debt (I believe it excludes taxes and child support). I heard that it is very tough to get a Chapter 11 since the new law has passed. Good luck!
2007-08-21 09:38:42 · answer #3 · answered by ITmom 2 · 1⤊ 0⤋