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Bankruptcy - A Way to eliminate or Reorganize your debts

If you're in financial crisis and cannot repay your debts, bankruptcy may be the solution to your debt problems. To learn what bankruptcy is and how it may work for you, check out the bankruptcy information below:


What is bankruptcy?

Bankruptcy helps to eliminate a part of your debts and may offer a payment plan where you pay back your debts with court supervision. When you declare bankruptcy, the court puts an automatic stay on any legal actions (collections, garnishment, foreclosure etc) taken by creditors/lenders due to non-payment of debt.

There are personal and business bankruptcies. The most common types of personal bankruptcies are Chapter 7 and Chapter 13.


When should you file bankruptcy?

If you're unable to manage your debts and need to eliminate or reorganize them, you should consider declaring bankruptcy. Below are the conditions when you should declare bankruptcy.
  • You're making the minimum payments on your bills.
  • More than one account is in collection.
  • The lender is about to foreclose on your home.
  • You've recently lost your job.
  • You have tried other debt solutions and they haven't worked.


What is a bankruptcy discharge?

A discharge is a court order releasing the debtors from the personal liability to pay off their debts. The discharge order is usually issued 4 months after filing Chapter 7 bankruptcy and 3-5 years after filing Chapter 13 bankruptcy (30-60 days after your final payment).

The discharge does not remove any unpaid liens placed on your property before you filed for bankruptcy due to default on a secured debt (a mortgage or car loan). So, the lender can carry out a foreclosure after the automatic stay is lifted. To avoid a foreclosure after your Chapter 7 bankruptcy has been discharged, and keep your home, you should sign a Reaffirmation Agreement (for exempt equity) and continue paying your mortgage.


How to file bankruptcy

Instead of filing bankruptcy on your own, it's better to get help from an attorney who'll guide you through the process. There are 3 steps to filing for bankruptcy. They are:
  • Deciding which chapter you can file for under the Means Test.
  • Enrolling for Credit Counseling.
  • Filing the court documents, including a financial statement.

For more details on how to declare bankruptcy, check out this information on filing for bankruptcy.


What happens after you declare bankruptcy?

Take a look at the bankruptcy information given below and get an idea of what happens after you declare bankruptcy.
  1. Creditors are notified: Within 14 days of declaring bankruptcy, the court notifies your creditors about the filing. The court sends a copy of your bankruptcy petition, including a notice that the automatic stay has been put in place, the name of your trustee, and the date when the 341 creditor meeting has been set.
  2. 341 Meeting with your creditors: Between 20-40 days after filing, the trustee holds a 341 Meeting with your creditors. You are required to attend and answer any questions put to you under oath.
  3. Trustee's role: In a Chapter 7 bankruptcy case, the trustee takes a look at your assets and determines which ones your state law exempts from being sold. Any nonexempt assets are sold off to pay your debts. In a Chapter 13 bankruptcy case, the trustee negotiates with your attorney and creditors to work out a repayment plan you can afford.
  4. Creditors may challenge the discharge: Your creditors have 60 days from the 341 meeting to convince the court you should not be able to discharge their debt.
  5. Financial Management course: Under the 2005 changes to the bankruptcy code, you are required to enroll with a court approved credit counseling service within 180 days before you file for bankruptcy.


Can you keep your home after filing bankruptcy?

You'll be able to keep your home if you've filed Chapter 13. But if you've filed Chapter 7, you may or may not be able to protect the equity in your home from your creditors/lenders. There are Federal and State Homestead exemptions. If your equity is less than the exemption, then you'll be able to keep your home.

Federal and State Exemptions
Some states permit their citizens to use the Federal exemptions, while others do not. Every state court requires an individual filing for bankruptcy in their state to have lived there for at least 2 years or to have lived in that state for the majority of the 180 days before the 2 year period in order to use their exemptions.

If you have more equity in your home than the state homestead exemption allows, then the trustee will sell your home. You will get an amount equal to the exemption, and the rest will go to pay off your debts, including your court costs. If you are still paying on your mortgage, you may reaffirm your mortgage and exclude your home from your bankruptcy estate.

However, if you have sold or transferred property to another person in order to avoid losing that property in bankruptcy, then you may lose part of an exemption or have your bankruptcy petition denied.


What debts are not discharged?

There are certain debts which cannot be discharged by filing for bankruptcy. These include:
  • Student loans
  • Back taxes
  • Fraudulent debts
  • Alimony
  • Child support
  • Large purchases
  • Government penalty


Pros and cons of declaring bankruptcy

Filing bankruptcy gives you a fresh financial start and helps to eliminate or restructure your debts so you can manage your finances well. However, when you file Chapter 7, it hurts your credit score. But Chapter 13 has a positive effect on your score as you can repay all or part of your debts. Thus, bankruptcy isn't always bad. What's important is to understand how bankruptcy works and which Chapter would suit you the best.
Related Articles
Related Forum Discussions
Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am recently divorced, my ex-husband has refused to comply with the divorce agreement. I am disabled and am only able to work 4 hours a week as my condition allows. My income is $416.00 monthly and my expenses are almost double that with doctor appointments and therapy. I called a lawyer to ask questions but was told that I would have to give him $1300.00 before he will file anything for me. I can hardly feed and house myself, where am I going to come up with $1300.00. I am fairly certain I qualify to file, but I cannot afford to have a lawyer. I don't want to be a deadbeat but I cannot help feeling helpless in all this. I am so lost.I have so many people calling me and yelling at me telling me I am a deadbeat. They harass me day and night I can only handle so much. HELP ME PLEASE!!!!!!

Like | Dislike | Share | Posted: Wed, 01/13/2010 - 08:42 | Post subject:

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

Hi mghelp,

What chapter of bankruptcy are you filing? If you're filing Chapter 7, then you will have to list all your assets. This includes your savings account as well as your free and clear property. The trustee will let you know whether or not they would be sold off to pay your creditors.

Like | Dislike | Share | Posted: Wed, 11/11/2009 - 23:15

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

I own my car, and I paid $3000.00 for it...will I lose my car for a Chapter 7

Like | Dislike | Share | Posted: Tue, 08/31/2010 - 19:43 | Post subject:

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

Hi M&M!

Welcome to forums!

If your wife has already filed bankruptcy, then she may not be able to claim any equity in that house. Nevertheless, you should speak to your divorce attorney in this regard and check out what can be done in this regard.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 06/13/2011 - 00:10

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

Hi AKB!

Welcome to forums!

Though your house is paid off in full, you will be able to file bankruptcy. You should contact a bankruptcy attorney and he will guide you further in this regard.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 01/10/2011 - 23:52

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi alr,

Motor vehicles, up to a certain value can be exempted if you file Chapter 7. You should contact a bankruptcy attorney and take his opinion in this matter.

Thanks

Like | Dislike | Share | Posted: Tue, 08/30/2011 - 22:53

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

Hi Guest,

You won't lose your home in Chapter 7 if you reaffirm your mortgage. However, once you reaffirm your mortgage, you will become personally liable for the mortgage payments. If you make the payments on time, you'll be able to save your property. However, after reaffirmation, if you fail to make the payments, then the lender can immediately foreclose the property.

Take care

Like | Dislike | Share | Posted: Thu, 01/27/2011 - 02:12

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

how much equity in a home is allowed under a chapter 7 filing for Missouri or Arkansas? I was told $15,000 with no other assets that could be sold

Like | Dislike | Share | Posted: Tue, 05/25/2010 - 13:27 | Post subject:

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

have NO financial obligation, however, suggest we could still be liable

we have rec'd our joint debtors discharge and also the order approving trustees report of no distribution for our chapter 7.

the problem is we surrendered our house and upon attorney's advise, left it over 9 months ago after being served foreclosure papers and our attempt for a loan modification failed. we lived there for over 33 years, but with job lost and illness, we had no choice.

now that we THOUGHT it was over the bank holding the mortgage will NOT take it out of our names...however, continues to maintain the property and has agreed we have NO financial obligation, however, suggest we could still be liable if anything happens on the property. furthermore, the bank, is racking up charges AFTER our surrendering claiming until they foreclose, we would be assuming post bankruptcy charges which they suggest they will come after us for???

my response to them was to immediately LEAVE the premises and have no one step foot further onto the property until this matter is resolved. i suggested a deed in lieu as this is a different circumstance that one that has a 750k mortgage with a house now worth 200k and we are asking the bank to write off the difference....THIS situation differs.....the mortgage debt was discharged...i told the bank you can't have it two ways......

this is a government back loan...i have gone to HUD, i have gone to FHA...i have gone to the bank.....what next??? we only now have a small pension and ss to live on....and the bank says until foreclosure...which they said could take another 3 years...the house stays in our names.

HELP!!!!!!!!

ps. i posted this i think in the incorrect forum. i hope someone has the answer here

Like | Dislike | Share | Posted: Sat, 08/14/2010 - 06:26 | Post subject:

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

Have you included the joint debts in your bankruptcy filing? If yes, then you would be discharged of those debts but the creditor can contact your wife for the payments.

Like | Dislike | Share | Posted: Wed, 03/24/2010 - 01:57

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

Hi aiden!

Welcome to forums!

As far as I know, most of the personal property people own- clothing, household furnishings and appliances are protected under bankruptcy law. The trustee won't be able to take those items away from you.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 02/07/2011 - 23:10

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi onion,

If you file Chapter 7 bankruptcy, then you will have to list all your assets and the trustee would decide whether or not your assets would be sold to pay off the loan.

Thanks

Like | Dislike | Share | Posted: Mon, 10/26/2009 - 21:20

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

Hi kk!

Welcome to forums!

As you've life estate rights only to the property, I don't think the bankruptcy trustee will be able to sell off the property to pay your creditors. Nevertheless, you should speak to your bankruptcy attorney in this regard and take his opinion.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 10/18/2010 - 23:22

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Christy,

Once your file bankruptcy, the court will issue an automatic stay and your creditors won't be able to sue you for the dues. If you file [url=http://www.mortgagefit.com/bankruptcy/chapter7.html]Chapter 7 bankruptcy[/url] and do not wish to reaffirm the loan, you can simply surrender the property to lender who would sell it off to recover the dues. However, if you file Chapter 13 bankruptcy, then the lender would give you a payment plan to pay off the dues. You'll not have to surrender the property.

Thanks

Like | Dislike | Share | Posted: Mon, 10/05/2009 - 23:32

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

I owe about $500,000.00 on my [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url], my home market value is about $650,000.00, I am 52 disabled(waiting for a determination) with two 16 year old children who collect survivors disability until age 19. I have one rental $1,200.00 once the children's checks stop I will not have enough income to pay home equity loan, is there a way to wipe out balance or part

Like | Dislike | Share | Posted: Thu, 04/08/2010 - 12:14 | Post subject:

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

I am married but want to file solely . my wife is not a cosigner on our mortgage loan but did have to sign the deed? will she have to file also?

Like | Dislike | Share | Posted: Thu, 02/17/2011 - 20:06 | Post subject:

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

Hi. I am tray to get solution to my problem.
I have two propertys one is my home the other was an invertion to my and my husband. Then, the second is in foreclosure My question is this Quick claim dee to my husband protect my primary home from creditors or is better to do bankruptcy. before the foreclosure.
Thanks.

Like | Dislike | Share | Posted: Fri, 09/11/2009 - 06:42 | Post subject:

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

Welcome tobe,

I can understand your situation. You're going through a real tough time.

As you've included the property and the mortgage in your bankruptcy filing, you're not personally liable for paying the mortgage dues. The lender can foreclose the property but won't be able to come after you for the balance amount. However, unless the property is sold off, it will remain in your name and you may be liable for paying the property taxes and other dues. You should contact your lender and ask him to sell off the property asap so that you don't remain liable for paying the taxes and insurance.

Like | Dislike | Share | Posted: Sun, 08/15/2010 - 23:21

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

My father has recently passed and my Mother is in a Reverse Mortgage and must keep her home. Now she needs to file a BK due to loss of income and the amount of consumer debts. What happens since the equity that would be in the home is eaten up by the Reverse Mortgage over the amortization of the loan? Does this need to be reaffirmed as well or how does

Like | Dislike | Share | Posted: Wed, 09/23/2009 - 13:03 | Post subject:

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

Hi Chelsie,

As far as filling out Schedule A is concerned, I would suggest you to get in touch with your bankruptcy attorney and he would help you in filling it out properly. It is same with the difference between laws 11 USC b (2) and 11 USC (b) (3). A bankruptcy attorney will be the best person to explain the difference between the two.

In regards to your second query, it is mandatory to disclose your income, assets and debts while you are filing Chapter 7. If you do not mention your wages, then they may not be exempt.

It is not mandatory for you to fill out the debt reaffirmation agreement. However, if you include your home and car in the bankruptcy filing and want to save it from being foreclosed or repossessed upon, then its better to sign the reaffirmation agreement. If you don't fill out the agreement and surrender the assets to the lender, he will foreclose or repossess it and sell it off to recover the dues.

Take care.

Like | Dislike | Share | Posted: Fri, 06/04/2010 - 02:45

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

Lost our home to foreclosre in 2008 which had a 1st and 2nd mortgage to purchase the home. We occassionally receive 2nd mortgage statements in the mail. I found out that the Statue of Limitations in Delaware for Promissory notes is 3 years from the start of the last payment/interaction which means that time has passed since my last interaction was in 2007 or early 2008. If the statute of limitations have passed, does this mean that Wells Fargo can try to sue me for the balance of that mortgage? This is what I am understanding. If this is the case, would it be best to file bankruptcy or wait for the mortgage to drop of my credit report which is due to do so in 2013? We really need a home and renting seems like such a waste of money.

Like | Dislike | Share | Posted: Tue, 06/07/2011 - 11:32 | Post subject:

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

I live in wi. my atty. told me I can only keep 22,000.00 from the sale of my home. I am filing for bankrutcy, he told me to stop paying everything except basics. I am 2 months behind on house payments and have it on the market. Is this true? Should I be paying my mortage until I file?

Like | Dislike | Share | Posted: Sun, 08/01/2010 - 10:47 | Post subject:

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

I have owned my vehicle for 3 years. I purchased it for 26,000. My payments are 635.00 a month. I am unemployed and have no money. My present balance is about 10,000. I want to file bankruptcy, chapter 7. Will I have to give up my automobile?

Like | Dislike | Share | Posted: Wed, 09/15/2010 - 21:15 | Post subject:

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

can back rent be filed into chapter 7,and if so once bankruptcy closes can we resume to pay our rent on time, and stay in the property

Like | Dislike | Share | Posted: Fri, 12/10/2010 - 06:47

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

Can you file Bankruptcy and in the process give your house back to the mortgage company if you can not pay for it.? I live in Louisiana.

Like | Dislike | Share | Posted: Mon, 10/05/2009 - 13:23 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi mark,

As the property is free and clear, you may not be able to keep your car. The trustee can sell off the car in order to pay off your creditors.

Thanks

Like | Dislike | Share | Posted: Thu, 10/14/2010 - 00:38

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

Hi Guest!

Welcome to forums!

If you are current on your car loan payments, then you shouldn't include it in your bankruptcy filing.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 05/07/2010 - 01:17

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

I do not want my house. it is worth not even half of what i paid for it now. How long can I stay in the house after my bankruptcy is finalized in court. My mother is on the mortgage loan. she recently died three months ago

Like | Dislike | Share | Posted: Sun, 11/27/2011 - 13:37 | Post subject:

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

If I have a savings account and money market equalling $9000, should I convert that amount into an IRA a year before declaring bankruptcy. Can I protect this money from having it taken by creditors in a Chapter 7 discharge? Please help. I worked so hard for this money and I am about to retire then declare chapter 7. :o

Like | Dislike | Share | Posted: Wed, 05/19/2010 - 07:45 | Post subject:

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

Hi Guest,

If the car is free and clear, then the bankruptcy trustee can sell it off in order to pay your creditors.

Like | Dislike | Share | Posted: Wed, 09/01/2010 - 00:28

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

Welcome matthew,

Your wife won't have to file bankruptcy along with you. You will be able to file it on your own.

Like | Dislike | Share | Posted: Thu, 02/17/2011 - 23:50

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jerry,

I guess, you've defaulted on your [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] as well. As a result you've received the summons. As both the mortgages are in default, you will have contact both of them and apply for a loan modification if you want to save the property. If you want to get rid of the property, then you will apply for a deed in lieu of foreclosure with your lender.

Hi Alex,

As your name is mentioned on the property deed, then you will have to list the property in your bankruptcy filing. As your sister is not jointly filing the bankruptcy with you, her credit will not be affected. It will be mentioned in her credit report that the property was included in another person's bankruptcy filing.

Thanks

Like | Dislike | Share | Posted: Wed, 04/07/2010 - 01:32

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

Hi TJ,

As you reaffirmed the mortgage and missed one of the monthly mortgage payments, the lender can take serious actions against you. He can foreclose the property. I would suggest you to contact your lender and let him know about your hardship so that the lender does not take any serious steps against you.

Thanks,

Jerry

Like | Dislike | Share | Posted: Tue, 08/10/2010 - 03:42

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

IF I HAVE HOUSE PAID OFF CAN I FILL FOR BANKRUPTCY IF YES HOW?

Like | Dislike | Share | Posted: Fri, 01/07/2011 - 09:32 | Post subject:

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

Hi michael!

Welcome to forums!

If you receive a bankruptcy discharge, then you won't be personally liable for the mortgage payments any longer. However, you'll have to surrender the property and the lender will foreclose it in order to recover his dues.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 01/24/2011 - 22:42

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

Hi Denise!

Welcome to forums!

You can include your mortgage in your bankruptcy filing in order to get a discharge from it. Once you receive a discharge, you won't be personally liable for the mortgage payments.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 09/15/2011 - 22:51

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

chapter 7 was discharged in oct 2009. thought reaffirmation agreement had been filed. I was given copy of unfiled reaffirmation agreement. founf out today almost 2 years later agreement never filed. Lender said attorney did not file agreement. Attorney said lender did not file agreement. Whose suppose to file it in State of missouri. Can filinf motion to re-open discharged cahpter 7 to re-affirm mortgage open door for old creditors to come back after you? Under circumstances am I a renter or homeowner? Ive not missed any payments. am I accuring equity. Credit report shows zero balance on mortgage.

Like | Dislike | Share | Posted: Wed, 06/01/2011 - 18:37 | Post subject:

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

FIRST MORT DEFAULTED HAS A SECOND, RECEIVES A SUMMONS FROM THE SECOND. SERVED BY COUNTY POLICE, WHAT ARE MY OPTIONS

Like | Dislike | Share | Posted: Tue, 04/06/2010 - 11:25 | Post subject:

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

Me and my husband filed bankruptcy last Oct.14,2006 not including our house w/c we are still paying. We should pay the trustee 11000aud that time to buy our house from them. We were only able to pay them 5000aud. They told us that we can pay the remaining 6000aud in 3 years time before we get discharge. Now, we talk to them if we could get dischrge by oct.14 if we will going to pay the 6000aud we owe the. They say no and it will depend now on the equity that we have with our house. So for instance we have 40000aud equity to our house then tehy will going to aask us to pay that 4000aud and noit the 6000aud anymore or else they will going to sell our property. Is this right? Can someone please help us. W e realyy don't what to do at the moment. we've got 3 children & we have no relatives here. Honestly, we are already thinking of committing suicide. We are so depressed and hopeless with our present situation. At the moment, both of us are lose our job and we are in the process of job searching. Please, any information will be of great help and eppreciated. Thanks

Like | Dislike | Share | Posted: Sun, 09/27/2009 - 19:37 | Post subject:

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

Hi broadwayjoe!

Welcome to forums!

It would be your lender and the court which would decide upon the payment plan that would be given to you in order to pay off the dues to your lender.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 11/10/2009 - 22:44

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

It was me above.... Just forgot to login.

Like | Dislike | Share | Posted: Tue, 11/10/2009 - 22:44

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

I filed an amendment to my bk chap 7....my case was discharged on 2/11...but I am still getting collection calls on ALL the creditors from my Amendment? How will I know which creditors were accepted in my case?

Like | Dislike | Share | Posted: Wed, 02/27/2013 - 18:05 | Post subject:

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

I filled chapter 7 an dit was discharged in september. I didn't reaffirm a debt when I filed bankruptcy and no longer have the items, and now they want them back. What should I do?

Like | Dislike | Share | Posted: Mon, 02/01/2010 - 14:44 | Post subject:

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

Home was in foreclosure, the bank stopped the foreclosure and wrote off our mortgage as a loss. They want us to pay monthly to a cashiering service . They say they don't want the home and we can stay, But we have no idea who we are paying, they have sent no paperwork at all. Bankruptcy in 2006, thought we reaffirmed mortgage. What should we do.

Like | Dislike | Share | Posted: Tue, 02/22/2011 - 11:12 | Post subject:

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

Hi dauchz!

Welcome to forums!

As your mother's name is still on the mortgage, you're not responsible for mortgage payments. The lenders will normally start the foreclosure process after the payments have been delinquent for 3 months. So, you may stay in the property for at least 3 months.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 11/28/2011 - 21:19

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

If not reaffirming my home in chapter 7, can I still pay by check over the phone for my house payment? Sending it in I'am afraid my payment will sit on a desk and be late at their company.

Like | Dislike | Share | Posted: Mon, 09/14/2009 - 22:29 | Post subject:

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

My home foreclosed a year ago or more and I'm now faced with a difficult dilemma. My home totally foreclosed and was sold in 2009. My job was lost in 2007 causing my mortgage payments to get behind, and when I finally got another job my pay was not close to that in which my mortgage was originally adjusted to. Long story short, I abandoned my home after receiving the final foreclosure notice, and now live in a family owned home. I'm now facing a hearing with the USDA next week because they started garnishing my wages claiming that I owed on my defaulted mortgage in which the home was sold for much more than amount owed. They have provided evidence that I signed a Form RD 1980-21, however the lender's name on the form is different from the lender they claimed to pay in losses. I've tried to find legal help but all want more than I am able to pay them and I make just over the maximum income level for free legal representation in SC. Now I am strongly considering bankruptcy to remedy this if it stands after the hearing. Would it do any good and stop the wage garnishment? The only property I have left in my name are my vehicles. Could they confiscate them? Any and all help will be very, very appreciated.

Like | Dislike | Share | Posted: Tue, 12/07/2010 - 14:17 | Post subject:

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

Hi sherrie,

Your query will be best answered by a bankruptcy attorney. However, as far as I can understand, the bankruptcy filing will get dismissed and the lender will foreclose the house and the car in order to recover their dues.

Like | Dislike | Share | Posted: Wed, 02/09/2011 - 22:27

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

if ive turned all my debts into a attorney to file bankruptcy, can i sell a truck thats been listed thats being repossesed. we do not have a claim number yet. thank

Like | Dislike | Share | Posted: Tue, 02/22/2011 - 11:48 | Post subject:

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

Hi annie!

Welcome to the forums!

You should immediately get in touch with your attorney and ask him to sort out the matter. He will let you know which creditors were accepted in your case.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 02/27/2013 - 21:19

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