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Chapter 7 Bankruptcy filing and exemptions

If you have no hope of repaying debts and are about to be sued by creditors/lenders, it's time you file Chapter 7 bankruptcy. With this type of bankruptcy, the court sells your nonexempt property to repay as much of your debt as possible. To learn how Chapter 7 bankruptcy works and how it can help you, go through the information below:


When to file Chapter 7 bankruptcy

You can file Chapter 7 if you are in any of the situations given below:
  • You don't have any money to pay off the debts.
  • You don't have cosigners to repay debt.
  • Your creditors are about to sue you.
  • Some of your accounts are in collection.


How to qualify for chapter 7

You need to fulfill the following in order to qualify for Chapter 7 bankruptcy.
  • Credit counseling: You must have attended a credit counseling session 6 months prior to filing chapter 7 bankruptcy.
  • Means Test: You must qualify under the Chapter 7 bankruptcy Means Test. Under the Means Test, if your income is less than the median income of another family of the same size in your state, you qualify to file Chapter 7. Find out how Means Test determines if you qualify for chapter 7. Check out how Means Test determines if you qualify for chapter 7 or 13.
  • Prior bankruptcy: You have received a Chapter 7 bankruptcy discharge within the past 8 years or a Chapter 13 discharge within the past 6 years.
  • Bankruptcy dismissal: You have not had your bankruptcy dismissed within the past 6 months for failure to appear or contempt of court.


Chapter 7 Non-exempt Assets

Most of the assets that are sold during Chapter 7 are personal property, such as your electronics or clothes. You will have to list all your assets as well as your liabilities when you file Chapter 7. The trustee will review the list of assets and divide your property according to what state law has said you may keep. The Federal government has enacted an exemption scheme that a few states allow you to use as an alternative to a state scheme, or if you are ineligible for the state exemptions due to residency requirements.


Bankruptcy Chapter 7 exemptions

Each state allows you to keep different types of property when you file Chapter 7 bankruptcy. Every state allows you to keep a part of your interest in your home and car if you include them in the bankruptcy estate. Many states have exemptions that allow you to keep heirlooms and other personal property, as well as your retirement funds.

Every state has a residency requirement that you must meet when you file Chapter 7. You must have been living in the state for at least 2 years before filing bankruptcy in that state or if you have not lived in any other state within the previous 2 years, but have spent the majority of the 180 day period preceding the 2 year period in that state.

Exemptions on house and car:
Bankruptcy Chapter 7 exemptions apply only if you have equity (your current home value minus costs of sale less balance on mortgage or other liens) in the property. If your home equity exceeds the State or Federal exemption, you may lose the home. However, if you have no equity in the house, it cannot be used to pay off your debts. In this case, you can keep the home as long as you pay the mortgage.

The same is true for a car, if you have no equity, you can keep it. If your equity in the car exceeds the exemption, it can be sold off to repay your car loan. Learn more about bankruptcy Chapter 7 exemptions.

If you wish to reaffirm your car loan and/or mortgage, then the property will not be included in the bankruptcy estate and you will be able to keep them.

Other Exemptions:
Apart from your home and car, there are other assets which may qualify for exemptions under Chapter 7 bankruptcy. The Federal government and most states allow debtors to keep all or part of their pensions, IRAs, and social security during bankruptcy. You can also receive protection for certain business assets if you are involved in a partnership or are a sole business owner.


Pros and Cons of filing chapter 7 bankruptcy

Here are some of the pros and cons of filing Chapter 7 bankruptcy.
Pros:
  • No Personal liability: Chapter 7 releases your personal liability towards any debts that are included in your bankruptcy estate and not repaid during Chapter 7. You receive a discharge order within 4 months of filing the petition.
  • Exemptions: You can retain certain assets under chapter 7.
  • Prevents legal actions: Once you file Chapter 7, it stops all lawsuits and collection actions being pursued by your creditors. Under Chapter 7 bankruptcy law, creditors cannot make harassing calls demanding payments from debtors until and unless the case has been dismissed.
  • Fresh financial start: Since Chapter 7 discharges your debts, you get the chance to organize and manage your finances better.

Cons:

  • Lose assets: You lose assets if they are sold off to pay your creditors/lenders.
  • Retain property liens: Chapter 7 does not remove property liens due to secured debts (mortgage or car loan) unless you give up the house or car during Chapter 7. So, even if you get a discharge, you'll have to pay off the lien in order to save your property from foreclosure or repossession if you keep the house or car.
  • Effect on Credit Score: Your credit score decreases by 250 points or so when you file Chapter 7 bankruptcy. The bankruptcy remains on your credit report for 10 years.
  • New credit/mortgage: It's difficult to qualify for new credit or a mortgage after you file Chapter 7 bankruptcy. If the market isn't doing well, no lender would offer you a mortgage even at high interest rates. It'll take at least 2 years to qualify for an FHA loan and 4 years for a conventional mortgage at an affordable interest rate. Check out this forum discussion on getting mortgage after bankruptcy.

Chapter 7 bankruptcy helps you eliminate debts but there are negative aspects as well. You need to understand how bankruptcy can work in your favor. Only then you can use it to your benefit and lead a debt free life.

Related Forum Discussions
Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my husband and i would like to file chapter 7 bankruptcy and infact need to badly, but he has no tax returns because he was paid under the table. however i do have mine. we werent married until march of this year though. Can we still file without a tax return to prove income.

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helping_user's picture
helping_user | Joined: March 31, 2006 03:39 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi
[quote:105f52e038]
Can we still file without a tax return to prove income.[/quote:105f52e038]

You can file chapter 7 bankruptcy without a tax return. But you need to clear any overdue tax return within few weeks of filing chapter 7. Otherwise, you get disqualified for bankruptcy chapter 7.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i own a home with very little equity in it (10k)
i have outstanding debt of 15k (badloan,phonebill,carinsurance,other misc.)
i have a full time income of 40k and my taxes are filled and are in good shape. only 1 year left on my mortgage term and im scared of not getting renewed with anyone and forced to sell. If I file chapter 7 bankruptcy, can i keep my home. or should i sell it first then file?
thanks,
Tony

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Jessica's picture
Jessica | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Tony,

Welcome to our community forums.

If only 1 year is left out of the mortgage, try paying it off as you have been doing. For the other bills, you can go for debt consolidation program. But I don't think you need to file bankruptcy chapter 7 or 13 just to pay off the mortgage and most importantly you will first have to qualify for the bankruptcy type before you can file.

Alternatively, you can sell off the home if you are not keen on keeping it and then file bankruptcy for debts other than the mortgage, preferably chapter 13 which will have better impact on your credit score compared to chapter 7 bankruptcy.

Any thoughts that you would like to discuss further?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Tony,

i donth think you need file chapter 7 bankruptcy. As mentioned above- keep paying off as you have been doing and for other bills go for consolidation program:0

Riko

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larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Riko,

Welcome to the forum.

Good information mate :). Why don't you join this community.

I think you can help the community with some sound suggestions and valuable information and at the same time can earn some $$$. Also can make thousand of friends from all over the world :)

You can also introduce yourself and let the world know about yourself at http://www.mortgagefit.com/introduce-yourself.html

Best of luck,
Larry

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We have some check cashing loans, will chapter 7 bankruptcy stay prevent them from cashing those checks.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I don't think bankruptcy can prevent one from cashing checks, even though it's chapter 7 bankruptcy.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am thinking about filing chapter 7 bankruptcy. i have two mortgages. I acheived them as stated income. Does stated income constitute fraud?

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Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi sassy,

Welcome to our forums.

I don't think stated income constitutes fraud. But what makes you think so?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have PDLoans and I want to know if they are legitimate PDL Companies: 1. United Cash loans
2. Cash Advance USA
3. Shop on line
4. Cashnet USA
5.VIP

Thank you

jennifer

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi In our Hearts!

Among all this companies, United Cash Loans is the one on which there has been a lot of discussions. You can go through this link to know whether people are satisfied or not.

http://www.mortgagefit.com/companies/unitedcashloans.html

Thanks,

Jerry

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi, my bankruptcy got thrown out of court because I was in the hospital after an accident and when i got out I wasnt given enough time to get all the documents out. How soon after can I file? Also, I had credit counceling if I have to wait do I have to re-take itr?

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi unknown

You will be able to file bankruptcy again though it has been dismissed once. But in case, if your bankruptcy has been discharged due to your failure to obey the court, then you may have to wait for 180 days after dismissal before [url=http://www.mortgagefit.com/know-how/filebankruptcy.html]filing bankruptcy[/url] again. To know more about the same topic, check out the following link:
http://www.mortgagefit.com/discuss/bankruptcy-dismissed.html

Thanks.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am planning to file Chapter 7 bankruptcy because of the huge debts that I’ve incurred. Can you tell me if I file bankruptcy, will it affect my wife’s credit?

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Sid,

You haven't mentioned whether your wife has joint debts with you or not. However, if you do not have joint debts with your spouse, then her credit will not be affected. She may even take a loan in order to purchase another property. But if there are any joint debts, then your bankruptcy will appear on her credit report as well. It will affect her credit score also.

Thanks.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

2 weeks after filing for chapter 7 my mother-in -law passed away. My husband is getting $5,000 from her IRA. Is this exempt in Ohio from the Trustee taking it from us?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I think, as your husband have inherited it after his mother has passed away, it will be exempted and the trustee will not be able to claim from you. Better consult a lawyer in this regard.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I'm pretty confused regarding my plans of [url=http://www.mortgagefit.com/know-how/filebankruptcy.html]filing bankruptcy[/url]…I will be filing chapter 7 if that helps. I have heard that collectors can force me to dispose of property other than my house and one vehicle and other allowable goods or belongings. But I do not find the law stated clearly as to who will be made responsible for the disposal or what can they really take... What can they really take if I file for ch7? Will it do me any good if I sell off my property now and pay off the debts of the collectors? Also my wife's name is not on the mortgage and property…so will her credit be ruined or will the collectors take her things??? We are planning to buy a property later on depending upon her credit and income so will my declaring bankruptcy prevent her from buying a home or car in the future?

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Peet,

In case of chapter 7 bankruptcy, the trustee generally liquidates your property in order to pay off the creditors. To know about what assets are included in the chapter 7 bankruptcy, check out the given link:
http://www.mortgagefit.com/bankruptcy/chapter7.html#assets

Moreover, you should also note that you may be able to save your property if you can afford to reaffirm your mortgage debts once you are discharged from Chapter 7 bankruptcy.

As you have mentioned that your wife's name is not on the property deed neither on the mortgage, then her credit will not be affected neither will the bankruptcy trustee has the right to take away her properties. As you are filing bankruptcy, it will not prevent her from getting a mortgage or a car loan. The lender will check her credit report and income history while approving a loan to her.

Thanks,

Jerry

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my spouse and I filed a chapter 7 in sept of 08. We recived a discharge with an approved Order Approving Trustees report of no distribution and closing estate. All final and signed by the judge. How will this affect the filing of my tax return in Feb of 09. Can they take it?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Tax refunds or a portion of it are considered as a part of the debtor’s assets and are taken up by the trustee to pay your creditors. However, there are exemptions on them and it differs from state to state. But as your bankruptcy has been discharged, I don’t think they should claim the refunds from you.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I bought a friend an auto for $4,000 without listing a lien on the title. The individual filed Chapter 7, Federal court 3 months later, Dec, 2008 in Michigan . He was told his home with a mortgage lien is protected n(equity $10,000) but his auto is not without a lien. I understand there is a $2500 federal auto exemption- should this amount not apply to reduce his liability? The vehicle may only be worth $3000 now to further reduce the bancrupcy trustee's claim. PJC

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Yes, he should get the $2500 federal auto exemption and this should reduce his liability.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello community!... I'm in some serious mess and would like to ask some questions…Just hope someone can answer them. There's a lien on my property. Right now, I'm also planning to file bankruptcy as well. So my question is…Will my filing bankruptcy remove the lien from my property??? Or does the lien still remains on the property forever??? There's another question for you guys as well… I am divorced and live in community property state so my question goes… will this bankruptcy filing of mine wipe my community debts as well? I hope someone soon answers my question…Sorry for being long winded…but can't help it…I'm in desperate need of help…

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

As far as I know, under some conditions, you may be able to file a special motion to remove some of your liens. The creditors will not remove the lien from the property until they get an order from the bankruptcy court to remove them. You will have to consult your bankruptcy attorney and check if you can file the special motion for removing the liens.

As far as the question regarding the community debts are concerned, you can be discharged from all the community debts which are dis-chargeable according to bankruptcy law. But remember that if you are discharged from the community debts, then it makes your ex-spouse liable for the entire debt.

Thanks,

Jerry

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i did not have the funds to pay for my court fee installments and I have a dismissal hearing coming up. The trustee took my tax return which is the only thing i was counting on to pay my rent...so it comes down to bankruptcy or a place to live...will my 09 refund be returned to me in the case of my dismissal?

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sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I guess the refund should be returned to you after the dismissal.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The debtor never finished paying for the ATV 1128.38, I have a valid UCC filing, I dont know if he even still has the ATV or if he sold it and chose not to pay it off. Can a debt that was Sold out of Trust SOT be discharged. How can I find out if he still has the ATV. (1200 miles away) :?:

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I think you should contact your lender and get the information from him. The lender is the best person to tell you whether he has sold the ATV or not.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Concerning the sale of an ATV. A lender only has a ucc on a ATV not a title. They are not able to tell without going legal if the unit was sold. It can cost thousands to find out he has sold it. Then even more to get a judgement. not a simple legal system is it. Doesnt protect the lender without him incurring a high cost.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi there…I hope someone out there can help me as I'm totally confused. I'm in upside down with all my debts and just want to get out of it…So we decided that I would file bankruptcy. But a lot of people telling me about the Means Test. What is it and how does work? And what if I don't pass the Means Test? Can't I file bankruptcy?

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sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

I guess you are planning to file Chapter 7 bankruptcy. The means test is an important part of bankruptcy and if you do not qualify, you will not be able to file bankruptcy. In the means test, your monthly expenses are deducted from your present monthly income in order to arrive at a monthly disposable income. If your disposable income is higher, then your chances of qualifying for Chapter 7 will be lowered.

When you go for the Means test, you will have to determine whether your income is more or less than the median income in your state. If your income is more than the state median, then you must figure out whether you would have enough left over after subtracting your expenses so that you can repay some of your debt.

If you don't pass the means test, then you will not be able to file Chapter 7. In that case, you can file [url=http://www.mortgagefit.com/bankruptcy/chapter13.html]Chapter 13 bankruptcy[/url]. In this case, you will have to make monthly payments over a five-year period according to a plan given by the lender and monitored by the court.

Take Care.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

how long will it take for chapter 7 bankruptcy to go through i mean once i file

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

In filing for Chapter 7 bankruptcy do I have to list my social security income as an asset? In other words, is it part of the calculation of my total income or is it ignored both when taking the means test and in the filing process? I know it can't be attached but does it have to be part of the overall calculation?

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

To kimknows!

As far as I know, you will receive a discharge order within 4 months of filing the bankruptcy.

To red beach!

As far as I know, you will have to list your social security as an asset. After including your social security as your asset, if you do not qualify in the means test, then you will have to go for Chapter 13.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am needing to file Chapter 7 Bankrupcy and will need to make a withdrawal from my 401K plan to help pay attorney and court fees for Bankrupcy filing. I have made some withdrawals the past year just to live as my only income is Social Security and part time work of 20 hours per week, I also have a current pension that has a ten year payout expiring in May of 2009. Is the 401K plan completely exempt regardless of my age of 65 in May, and my ability to make a legal withdrawal. because I am over 59 1/2 years old. Also I am currently being garnished causing much hardship. how soon do the garnishments start once bankrupcy is filed? I am a resident of the state of Missouri.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can I file chapter 7 if I owned a home? The home has little value!!
Help????

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

To Susan,

You will not have to pay penalty for 401k withdrawal as your are already 59 and 1/2 years old. However, you may have to pay taxes on that. Once the bankruptcy is filed, the court will issue an automatic stay and the creditors will not be able to garnish you wages further.

To homeowner,

You will be able to file a Chapter 7 bankruptcy provided if you qualify the Means Test. If you don't qualify the means test, then you will have to go for Chapter 13 bankruptcy. To know more about means test, check out the following link:
http://www.mortgagefit.com/bankruptcy/chapter7-2.html#80312

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i have i used my credit cards within the last few months but need to file bankruptcy as i am unable to pay my bills on my own. how long do i have to wait until i can apply for a bankruptcy? also, i do not own anything, and do not pay rent. Will i still qualify? i made less then 10k last year.

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

In order to file Chapter 7 bankruptcy, you will have to qualify the Means Test. To know what Means Test is, check out Sara's post above. If you qualify the Means Test, you will be able to file Chapter 7 bankruptcy. If you don't qualify the Means Test, then you will have to file Chapter 13.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i have my car title at a title place if i file chapter 7 can they reposses my car or can that be included in a 7 so i keep my car

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am getting a divorce we just got dismissed from a chapter 13 I would like to file chapter 7 on my own after the divorce the chapter 13 was in my husbands name

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi!

To jc,

Your car can be considered as an asset and the bankruptcy trustee can liquidate it to pay off your creditors.

To jmack,

Yes, you will be able to file Chapter 7 bankruptcy after your divorce. However, you would have to qualify the Means Test in order to file Chapter 7.

Sussane

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savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi

Since chapter 13 was in your husband's name, you can surely file a chapter 7 after divorce, subject to your qualification in the means test and fulfilling other criteria as required by the bankruptcy laws, 2005.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have no home, my car is 10 years old, I am on SSI (&1,000.00) a month my only income. I do have about $19,000.00 in some mutual funds. I owe over &100,000.00 in cerdit cards acounts. If I file chapter 7, can they take what I have felt in the mutual funds??

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

As far as I know, mutual funds are not exempt. So the bankruptcy trustee may utilize them to pay off your debts. I think you should contact a bankruptcy attorney and get his opinion on this issue.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Well, it's a messy situation…I filed chapter 7 a few days ago. Immediately, I informed the bank about the bankruptcy and also gave them my case number. But surprisingly, the repo guy just showed up today. He wants me to open my garage so that he takes my car. I informed him about my Bankruptcy and showed him about case filing paper and he said he still wanted the car. I did not bother and asked him to leave and slammed the door on his face. But he is parked down the street now :(.

What recourse do I have against the bank for this?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:54 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

I think you should contact your bankruptcy attorney asap and ask him to deal with the bank. In my opinion, your lender is violating the automatic stay. It would be better if your bankruptcy attorney can send a certified letter to the bank indicating that they are violating the court automatic stay. However, you should note that the lender can file a motion to lift the automatic stay. If the automatic stay is lifted then they can take the car but until then they can't legally take it.

Take Care.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:54 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hey guys…I would like to have your opinion regarding my situation. The only debt that I have is the home payment. My vehicles are paid for and no credit card debt. The property is in my name. Husband is a disabled veteran. I'm having a tough time paying mortgage. Credit score was quite high when I purchased property. I had planned to sell my house and take the equity to buy a small and less exoensive home. Now the realestate market has gone for a toss and my payoff is almost equal to what i owe. There's no equity :(. What do you say…should i file chapter 7 Do you think it's a good idea???

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:54 | Post subject:

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