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

Hi Frankie,

If you're still into bankruptcy, then you won't be able to qualify for any kind of loan.

Thanks

Like | Dislike | Share | Posted: Sun, 01/06/2013 - 22:48

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

Wa state sent me a letter stateing they cant come after me for a claim, yet they are now using these companies of tax relief to attempt to collect on a unemployment benifit?

Like | Dislike | Share | Posted: Mon, 10/07/2013 - 18:03 | Post subject:

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

my husband & I recently fell in love with a house that has been bought by a bank through a chapter 7 bankruptcy & we were wondering if the bank will be put the house up for sale through a realtor & if so will we be obligated to pay the debts left from the previous owners

Like | Dislike | Share | Posted: Mon, 04/12/2010 - 09:29

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

I am about to lose my home to forclosure, and requested a report as to what i need to pay along with the attorney fees. I owe 100,000 on my home and have a car that's worth 18,000 can i still keep my car looking for work owe the government 5,000

Like | Dislike | Share | Posted: Sat, 12/18/2010 - 08:49 | Post subject:

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

Hi,

To sandy,

In my opinion, it would be a better option to go for a deed in lieu of foreclosure rather than filing Chapter 7 bankruptcy. With the help of deed in lieu, you would be able to sell off the property whereas you won't be liable for the deficient amount. Moreover, you won't have to pay taxes for the forgiven amount due to the Mortgage Debt Relief Act. Thus, you would be able to save your car as well.

To anonymous,

I would suggest you to discuss this issue with a bankruptcy attorney. He would be the best person to let you whether or not it would be considered as a fraud.

Like | Dislike | Share | Posted: Sun, 09/13/2009 - 20:40

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

We filed chapter 7 over 2 years ago. I have lost my job and we are facing foreclosure on our home. We were already in trouble with our mortgage due to the economy before I lost my job. Is there any way we can file so as not to get sued or do we have to wait the 8 years no matter what?

Like | Dislike | Share | Posted: Tue, 12/14/2010 - 05:21 | Post subject:

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

My condo is in forclosuer and I am on disability soc sec and food stamps. I have no money and no bank accounta. I have a car that is paid for , it is a 2005 pt crusier. Iam also worried about a deficiency 1099C. I ow 97,000 on my condo and ther is a contract on it for 69000, wold a chapter 7 stop the 1099C and what would happen to my car

Like | Dislike | Share | Posted: Sun, 09/13/2009 - 04:22 | Post subject:

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

Hi norma!

Welcome to forums!

As far as I know, the trustee will be able to take your tax returns to pay off your creditors if you are in bankruptcy. Thus, I don't think you would be able to save your tax returns.

Sussane

Like | Dislike | Share | Posted: Thu, 04/29/2010 - 00:07

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

Hi anonymous,

You can get a discharge from your [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] once you file bankruptcy. You should contact your bankruptcy attorney and he will guide you in this matter.

Like | Dislike | Share | Posted: Sun, 01/16/2011 - 23:29

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

Hi helemano!

Welcome to forums!

If you've included your mortgage in your bankruptcy filing, then you can get it discharged. After the discharge, you can surrender the property to your sister who can sell it off to recover her dues.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Sat, 09/25/2010 - 00:10

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

I received $13,000 ssdi BACK PAY a couple of monthe ago but wife and I are going to file Ch 7 bankruptcy in ILLINOIS.Funds have all been spent on car repairs,driveway rock,plumbing issues,but do not have the receipts,will this be a problem?Should we wait 6 months or so to file or is it OK to proceed now?Thank you!

Like | Dislike | Share | Posted: Thu, 05/26/2011 - 11:37 | Post subject:

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

You can list the property in the market. You can contact a real estate agent and he will help you list the property in the market.

Like | Dislike | Share | Posted: Tue, 08/14/2012 - 03:46

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

IS IT POSSIBLE TO FILED BUNKRUPTCY ON A MORTGAGE LOAN IF THERE IS A 1ST AND A 2ND

Like | Dislike | Share | Posted: Wed, 04/21/2010 - 12:57 | Post subject:

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

IF MY CAR IS WORTH 4000.00 IN THE nada book and i still owe 10895.00 do i have to pay the inrtrest or not what are the rule if i file chapther 7

Like | Dislike | Share | Posted: Thu, 08/19/2010 - 07:42 | Post subject:

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

Hi
I would need to file bankruptcy within 30 to 45 days. I wasn't aware of this requirement (credit counseling). What can I do now? Is there any solution to this?
Thanks

Like | Dislike | Share | Posted: Thu, 09/02/2010 - 18:11 | Post subject:

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

I am leasing a vehicle from my neighbor. There is a lien on that car. I'm doing a lease to own with her. She recently bought a brand new Lincoln Navigator. Now she tells me she is planning to file bankruptcy. What happens to the car I'm leasing from her? It is still in her name and does have a lien.

Like | Dislike | Share | Posted: Sun, 12/19/2010 - 19:25 | Post subject:

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

I OWNN A BUSSINESS WITH 4 OTHER PARTNERS
WOULD THEY GO AFTER MY SHARE OF BUSSINESS I OWN 20 % BUT THE BUSSINESS HASNT SHOWN A PROFIET IN OVER 3 YEARS

Like | Dislike | Share | Posted: Fri, 04/22/2011 - 11:15 | Post subject:

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

i got a discharge on my second mortage from a chapter 7 does this mean i still have to make payments to them?

Like | Dislike | Share | Posted: Thu, 03/10/2011 - 09:04 | Post subject:

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

Hi anonymous,

Your father may be notified about the fact that you've filed bankruptcy. If you file bankruptcy, the lender can come after your father in order to recover the dues.

Thanks

Like | Dislike | Share | Posted: Thu, 04/07/2011 - 00:22

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

I WOULD LIKE TO HAVE A FRESH START CHAPTER 7

Like | Dislike | Share | Posted: Fri, 04/22/2011 - 11:15

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

You will be liable for paying off the loan. They will force you to pay off the loan. As you have used the jewelry as a collateral, then they will take away the jewelry in order to recover the debts. You can negotiate for a modified pay off but it will depend upon the lender whether or not he will agree to it.

Like | Dislike | Share | Posted: Mon, 01/23/2012 - 02:02

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

Hi Augie!

Welcome to forums!

You'll have to contact a property appraiser and let him appraise the property for you. This will help you know the present value of the property.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 12/02/2009 - 20:14

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

my property is paid off can i file bankruptcy and still keep it

Like | Dislike | Share | Posted: Fri, 02/05/2010 - 15:06 | Post subject:

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

I live in Michagan and need to file Ch.7 bankruptcy. My husband and I file married filling jointly on are income taxes. Does he have to file bankruptcy with me or can I file singely

Like | Dislike | Share | Posted: Mon, 04/19/2010 - 15:48

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

Can I sell or rent my home 1 year after my bk was discharged, I currently live in the home and have never missed a payment either before during or after the bk.

Like | Dislike | Share | Posted: Mon, 08/09/2010 - 16:34 | Post subject:

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

I own property in another city that my parents live in and they pay the mortgage. I live in an apartment. There is less than 125,000 equity in the home. It's in Texas. Can I keep the home if I file chapter 7.

Like | Dislike | Share | Posted: Thu, 12/02/2010 - 11:52

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

i recently had to semi retire and start social security because of diabetes,just cant work lonh hours anymore at 64 years ,tried to pay back but cant. i know i will i lose will lose house and i car, very few assets, will i lose income as well....make less than 30,ooo year

Like | Dislike | Share | Posted: Mon, 01/24/2011 - 13:44 | Post subject:

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

My ex spouse just filed chapter 7. He is 7,000 in the rears in alimony payments. My car and my daughters car are in both his and my names. Will I be responsible for car loans? Will he get out of alimony? Both are part of divorce decree. Do I need to get an attorney?

Like | Dislike | Share | Posted: Mon, 11/18/2013 - 17:44 | Post subject:

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

If I am going to file Chapter 7, can I keep my only truck for work, etc? I co-own my home also in Florida. Not in foreclosure and I am keeping it. The truck is my biggest concern.

Like | Dislike | Share | Posted: Sat, 07/03/2010 - 19:12 | Post subject:

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

we did not pass the means test however, my son is very much dependent on us. He has lost several jobs and since I con-signed for his car loan and a credit card loan, we have to pay his bills also. what can we do to become eligible for chapter 7 as I do not have left over income each month to pay according to chapter 13?

Like | Dislike | Share | Posted: Fri, 09/17/2010 - 16:54 | Post subject:

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

how long does property: for example a s/d lot i put in my husbands name to not loose it have to be out of my name to file bankrupcty, so they dont include it in the bankrupcty?

Like | Dislike | Share | Posted: Mon, 09/13/2010 - 16:18 | Post subject:

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

Recd SSDI backpay,already spent ,no receipts,will this be a problem with Ch7 bankruptcy in IL?

Like | Dislike | Share | Posted: Thu, 05/26/2011 - 12:21 | Post subject:

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

If I have filed bankrupt will the creditors or anyone take my income taxes.

Like | Dislike | Share | Posted: Wed, 09/08/2010 - 16:04 | Post subject:

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

To zophia,

As far as I know, the retirement accounts are exempt from bankruptcy. The court will not be able to garnish your retirement account. Thus, you may be able to place the amount in that account. However, you should have a word with your bankruptcy attorney in this regard. He will guide you in a better way.

To anonymous,

As far as I know, you will have to go for credit counseling from an approved provider before filing a petition in bankruptcy. I don't think this can be done during the filing.

Like | Dislike | Share | Posted: Thu, 04/15/2010 - 04:30

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

we filed chapter 7 in feb. 2004, it was discharged in aug 2004. does this mean that I cannot file for chapter 7 again right now?? if so what are my options?? neither my wife or I have any source of income right now and jobs and the economy show NO signs of improvement were I live so what can we do?? thanks

Like | Dislike | Share | Posted: Fri, 11/19/2010 - 23:07 | Post subject:

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

Hi We are dismissed from Chapter 13. We are going to loose our car.We talk tothe bank about reaffirming the loan but they are asking for a down payment and the payments are too high. What should we do?

Like | Dislike | Share | Posted: Sun, 01/30/2011 - 20:49 | Post subject:

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

You need to contact a bankruptcy attorney and he would help you in a better way. Most important, if you had a mortgage on that property, then you will have to sell off the property and repay the debts first.

Like | Dislike | Share | Posted: Wed, 03/24/2010 - 01:53

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

Hi rms!

Welcome to forums!

If your husband is [url=http://www.mortgagefit.com/know-how/filebankruptcy.html]filing bankruptcy[/url], then he will have to list the property as his asset. If the property is free and clear, the trustee may sell it off in order to pay off his creditors. However as the other two brother's are listed on the property, then they would be able to receive their share of property after it is sold off.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 04/09/2010 - 00:21

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

can they put a lien on our house if they lake the care after being dismissed ffrom a Capter 13?

Like | Dislike | Share | Posted: Sun, 01/30/2011 - 20:57 | Post subject:

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

Hi doodoo,

After filing chapter 7, you won't be able to sell off the property. You will have to surrender the property to the lender and he would sell it off to recover his dues. However, if you reaffirm the dues, you would be able to save the property if you keep on making regular payments to the lender.

Thanks

Like | Dislike | Share | Posted: Mon, 02/22/2010 - 23:07

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

what would happen if a cash inheritance was issued just before filing chapter 7 does it have to be reported

Like | Dislike | Share | Posted: Wed, 11/04/2009 - 03:52 | Post subject:

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

Hello! fagekge interesting fagekge site!

Like | Dislike | Share | Posted: Thu, 04/29/2010 - 02:27 | Post subject:

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

In addition to my personal home & car I have (2) rental income properties of which one of them was purchased through an IRS 1031 exchange. Because of my financial situation I am considering filing for [url=http://www.mortgagefit.com/bankruptcy/chapter13.html]Chapter 13 bankruptcy[/url] protection. In a Chapter 13 bankruptcy would I be able to keep the rental income properties or at least the one that was purchased through a 1031 exchange?

Like | Dislike | Share | Posted: Mon, 12/21/2009 - 07:17 | Post subject:

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

Hi tiger!

Welcome to forums!

Chapter 7 will help you in getting rid of your debts. I would suggest you to contact a bankruptcy attorney and discuss your whole situation. He will go through your financial situation and let you know which chapter of bankruptcy filing will be best suited for you.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 05/28/2010 - 01:50

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

What happens with the payments I have been making each month to my sister for a personal loan from her. I have been paying her $150/mo. for a year on a $7500 loan. There was no collateral involved.

Like | Dislike | Share | Posted: Thu, 02/17/2011 - 16:41 | Post subject:

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

My husband and I filed for bankruptcy in 2003 and the trustee discharged it as paid in 2006. We had two home equity loans which were three months behind. The catch up payments were included in the bankruptcy repayment plan and we continued to keep payments up to date until the current time. I just inquired about a payoff for the larger loan and I received a response that we owe 7,000 on the loan but another 8,200 for interest during the years 2003 - 2006. I'm confused on whether this is a legal charge since we made all the payments. They are charging 3 years of interest when the payments were never lowered, we paid the full amount each month. Thank you for your help.

Like | Dislike | Share | Posted: Sun, 04/03/2011 - 07:58 | Post subject:

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

Hi!

Welcome to forums!

To lmw,

You will have to list the property as your asset when you file bankruptcy. You won't have to include the property in the bankruptcy.

To Guest,

Though you've filed bankruptcy, you won't have to wait in order to get a job. You should immediately start applying for jobs and check out if you can get one.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 11/10/2010 - 23:22

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

Do I have to cash out my 401k in order to file for bankruptcy?

Like | Dislike | Share | Posted: Wed, 12/12/2012 - 17:47 | Post subject:

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

The mortgage has been discharged through Chapter 7. As you've not reaffirmed the debts, the lender will not come after you for the payments. He will rather foreclose the property and try to recover as much dues as possible. You won't be responsible for the deficient amount. The foreclosure will affect your credit score. It may lower your credit score by 250 points.

Like | Dislike | Share | Posted: Mon, 12/07/2009 - 00:26

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

what if you don't have any assets to sell off, to help pay for your debt, can you still qualify for Ch. 7 bankruptcy?

Like | Dislike | Share | Posted: Fri, 03/26/2010 - 08:42

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