Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Bankruptcy filings - Why and how to file bankruptcy

When you consider bankruptcy as a way out of debt problems, make sure you're quite clear about why you're filing it. To know whether filing bankruptcy is the right decision and how to file for bankruptcy, take a look at the following topics:

Should I file bankruptcy?

Here are the 11 reasons why you should consider filing bankruptcy.
  1. Creditors not willing to negotiate: Bankruptcy filings make sense when your creditors are not willing to negotiate and offer an alternative payment plan. The creditors may ask for full payment without extending the payoff period. In such a situation, there's no way but to file bankruptcy.

  2. Your liabilities exceed your assets: This is a big reason why debtors file bankruptcy. It is sometimes seen that the monthly payment amount exceeds your monthly income. In such a scenario, bankruptcy filing is a good choice.

  3. Your wages are garnished: If your creditors/lenders have received judgment against you for garnishing wages, filing for bankruptcy can stop the garnishment. Through this, you can partially recover your garnished wages.

  4. Unsecured debts: If most of your debts are unsecured debts such as credit cards, medical bills and the like, you can get rid of them by filing chapter 7 bankruptcy.

  5. High debt amount: Bankruptcy filings make sense if your total debt amount excluding mortgage and car loan is much higher than what you can pay in the next 5 years or so.

  6. Your accounts are in collection: If you're receiving harassing calls from collection agencies who're charging more than you owe, the only way to stop them quickly is to file Chapter 7 bankruptcy.

  7. Late payments: You may have more than 30 day late payments on more than one account. Bankruptcy filings can help you wipe out the dues or pay them off.

  8. No insurance for medical bills: When you have unpaid medical bills with no insurance cover to pay them off, filing bankruptcy can be the right choice for you.

  9. No savings at all: If you don't have any savings left, and cannot pay down debts with your income, the only option left is to file bankruptcy.

  10. Creditors have filed a lawsuit: In case your creditors have filed a lawsuit, you shouldn't ignore the summons. Otherwise, creditors can obtain a default judgment from the court along with the permission to seize your assets or garnish your wages. Bankruptcy filings prevent such judgments from being issued against you.

  11. Foreclosure or repossession: If you cannot afford to pay for the mortgage anymore, chances are that the lender may foreclose. Again, in case you have taken out a car loan and you're unable to pay it off, the lender can repossess your car. Bankruptcy filings put an automatic stay on foreclosure or repossession. However, you may have to reaffirm the debt once you receive discharge.

How to file bankruptcy Chapter 7

Instead of filing bankruptcy on your own, it's better to take help of an attorney who'll guide you throughout the process. Check out the 4 steps on how to file chapter 7 bankruptcy.
  1. Determine if you should file Chapter7: If your financial situation is worse and there's no way you can pay down any debt, Chapter 7 may be the right option. However, if you have some income, but cannot afford payments as agreed, you may consider filing bankruptcy Chapter 13.

  2. Credit Counseling: As per the Bankruptcy Law, prior to bankruptcy declaration, a debtor has to enroll himself/herself into a credit counseling program. The credit counselor must be approved by the US Trustee's office. The purpose is to help you understand if at all you need to declare bankruptcy.

  3. Means Test: Prior to filing bankruptcy, you'll have to pass through the Means Test, which helps to determine if you are eligible to file bankruptcy Chapter 7. If you fail to pass through the Test, you may file Chapter 13.

  4. File your documents: You'll have to prepare a list of your past and present debts, assets, liabilities along with the statement of your financial situation. These documents are then filed with the bankruptcy court for which you'll have to pay a fee.

How to file for bankruptcy Chapter 13

Chapter 13 bankruptcy filings are almost similar to that of Chapter 7 except that the debtor should submit a payment plan which will help him repay all or part of his debts within the next 3-5 years. This plan can be submitted either on the date of bankruptcy filings or within the next 15 days.

The Chapter 13 plan should clearly explain how the debts will be repaid along with the exact repayment period. Thereafter the trustee and the lender review the plan and give the approval. The plan may also be rejected.

How often can you file for bankruptcy?

You can file Chapter 7 every 8 years after a previous Chapter 7 filing and 6 years after filing bankruptcy Chapter 13. However, Chapter 13 can be filed every 2 years from a previous Chapter 13 filing and 4 years from filing bankruptcy Chapter 7.

Bankruptcy filings help you to wipe out debts or restructure payments. However, it affects your ability to obtain future credit (though Chapter 13 has a positive impact), buy a home or even acquire a suitable job. Therefore, you need to consider all aspects of your financial situation prior to filing bankruptcy.

my mom quit deeded her house to me a year ago, but she has a life estate at the house. i want to know if i try out chapter 7 or 13 bankruptcy filings, will i risk losing her house? also, bankruptcy filings are possible while owning this quit deed? there is no mortgage on the property. property is valued at $90,000 and i want to file a chapter 7 on $20,000 in debt.

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

Hi Randall,

If you want to file bankruptcy, then you should contact a bankruptcy attorney and take his opinion in this matter. The charges of the attorney can vary. He will check out your financial situation and let you know which chapter of the bankruptcy filing will be best suited for you.

Thanks

Like | Dislike | Share | Posted: Tue, 05/18/2010 - 22:47

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

I lost my job,have a pt job in my home. Has slow down because my clients, have lost their job etc.My spouse draws ss,we have been able to keep our bills current,but with everything going up we use our c cards. We are losing the battle we can't keepthis up.can we file we have 35,000
in cc, personal loans. well we lose our home we still owe on it,

Like | Dislike | Share | Posted: Mon, 11/02/2009 - 06:06

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

If my father cosigned on my mortgage and I file chapter 7 bankruptcy but FULLY intend to keep paying my mortgage as usual, will he be notified and aware that I filed bankruptcy?

Like | Dislike | Share | Posted: Sun, 04/03/2011 - 06:35 | Post subject:

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

Hi silas,

You cannot file bankruptcy immediately after deeding the property to someone else. After you transfer the property, you'll have to wait for at least a year in order to transfer the property to someone else.

Thanks.

Like | Dislike | Share | Posted: Fri, 10/08/2010 - 00:00

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

i have two houses and two cars in my name along with medical bills and credit cards, oh and there was also a truck that i let go back that they were filing a suit on i am paying the two cars off and one of the houses there is no way i can pay for the other house do i risk loosing all of it and will filling bankruptcy completely mess my credit up and will it mess up my new husbands

Like | Dislike | Share | Posted: Mon, 11/16/2009 - 15:57

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

I owe 34K in credit cards. not behind in any pmts. but need help. SS is only 1339. mth Home is worth 44K Car 4,000. I have no other means of support.

Like | Dislike | Share | Posted: Sun, 09/27/2009 - 09:46 | Post subject:

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

I have filed bankruptcy but now have listed my Moms property as I am on the warranty deed and will own an interest when she passes. How do I list this property and do I put a dollar amt. as market value at today's prices? I submitted an amended Schedule "A" but it came back from court as not entered correctly.

Like | Dislike | Share | Posted: Mon, 06/11/2012 - 17:20 | Post subject:

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

Hi sunny,

If the person has a car loan, and if he or she reaffirms the debt with the lender when he or she is in Chapter 7, then the person will be able to save his car.

Thanks

Like | Dislike | Share | Posted: Tue, 09/28/2010 - 22:40

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

Can I file bankruptcy with just the credit cards and medical bills that I owe and not my vehicle? Also if I file would i be able to get approved to get an apartment after filing???? Also If my credit card bill went to a collections agency and they are offering to settle for just less then 1/2%, should i do that and will it come off of my credit report If i were to settle??? Thank you

Like | Dislike | Share | Posted: Thu, 09/30/2010 - 08:27

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

Hi seahorse,

If he is not filing bankruptcy with you, I don't think he will be notified about your bankruptcy filing.

Thanks

Like | Dislike | Share | Posted: Sun, 04/03/2011 - 23:53

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

As filing bankruptcy is a legal process, you should contact an attorney and get it done. You may contact your friends or relatives who may help you in appointing a lawyer for yourself.

Like | Dislike | Share | Posted: Mon, 01/25/2010 - 01:41

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

Hi danette,

You must be having the documents related to bankruptcy that you had filed earlier. You will be able to know the filing date from those documents. This will help you in deciding when you can file bankruptcy again.

Take care.

Like | Dislike | Share | Posted: Wed, 02/03/2010 - 02:38

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

a person should be able to keep their car if filing chapter 7 bankruptcy in florida shouldn't they?

Like | Dislike | Share | Posted: Tue, 09/28/2010 - 13:35 | Post subject:

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

I pray your are right James. That is the part I have been sweating....family humiliation

Like | Dislike | Share | Posted: Mon, 04/04/2011 - 06:14

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

HOW DO I GET THE PAPERWORK ON LINE

Like | Dislike | Share | Posted: Mon, 10/19/2009 - 16:52 | Post subject:

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

i was divorced after 9 year marriage on 3/27/09. i was in extreme debt because of the divorce and was forced to file chpt 7 bankruptcy-it was discharged in may 2009. my first mortgage owed is $429,000 w/payment of $2,386 a month-not on bk nor reaffirmed- my second is $90,000 w/payment of $586 a month-that got put on bk (not at lawyers nor my request-we think it was the bank's error) these are two separate banks. i have attempted 3 times this yr and attended a public workshop to get both loans modified, but because i was not yet behind they would not even help even though i more than qualify under the obama plan. recently my ex-husband has filed chptr 7 bk including both the mortgage loans and stated that the home was quitclaimed back to me at 0 profit (it was my childhood home in the first place!) my job is somewhat secure (26 yrs) but i will be having a few paycuts due to furlough days and possible medical costs so my income will be less in the very near future. on top of that, my three grandkids have been homeless and the parents want me to take temporary custody - i have the room, i just need the financial help in order to feed, cloth, provide medical and continue to pay my utilities and mortgage payments - i am trying to quickly get set up as a foster care grandparent with the state to assist me with that. the question i have; since both my ex and i have now filed chptr 7 bk on the 2nd mortgage with that amount of money still owed on the first (home current value is approx. $430,000) what would the odds be that the second mortgage bank would foreclose on the home i need to have to raise the kids in now if i quit making the monthly payments to the second? right now the $568 would help with food and utilities until i can get set up. please advise this working single grandparent raising 3 teens.

Like | Dislike | Share | Posted: Thu, 09/30/2010 - 15:54 | Post subject:

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

Hi Carlton,

You can contact a real estate attorney and take his opinion in this regard. The attorney will look into the documents and let you know whether or not there is any chance to stop the foreclosure.

Like | Dislike | Share | Posted: Wed, 08/01/2012 - 00:12

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

I filed a Chapter 7 in 2005 and was discharged prior to the laws changing in Illinois. I have since lost my job and I have personal loans and payday loans that i need to eliminate. Can i file a chapter 7 again?

Like | Dislike | Share | Posted: Mon, 01/31/2011 - 09:59

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

Two years ago, I was foreclosed on by my lender while I was awaiting discharge from a Chapter 7 BK. Recently, in preparing a foreclosure review, I discovered that the loan had several flaws, including the fact I would end up defaulting because of my low, fixed income. If I had known more about mortgages, I would have run a simple analysis and projected that this would happen. My question is, would this be a fact a foreclosure review would consider? Or are they only interested in "accidental errors" which led to the foreclosure?

Like | Dislike | Share | Posted: Tue, 07/31/2012 - 20:51 | Post subject:

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

Hi,

To anonymous,

I don't think there would be any problem if you marry and if your potential spouse is going through Chapter 13. The bankruptcy have been filed before marriage. So, I don't think your property would get included in the process. However, you can contact a bankruptcy attorney and get his suggestions in this regard.

To yellowrose,

If you file bankruptcy, it is your credit that would get affected. Your husband's credit or his properties would not be included in the filing. However, if there are joint properties, then it would get included in the filing. Bankruptcy will affect your credit score and reduce it by 200 or more points but you can take steps to rebuild your credit.

Like | Dislike | Share | Posted: Mon, 11/16/2009 - 22:44

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Bankruptcy is a public record.

Like | Dislike | Share | Posted: Mon, 04/04/2011 - 09:57

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

I can not afford to pay for a bankruptcy lawyer. They want to charge me $1800 and I cant afford that. Does anyone know the procedure?

Like | Dislike | Share | Posted: Fri, 01/22/2010 - 11:29 | Post subject:

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

We are currently in a high interest rate mortgage and we keep falling behind each yr then tax time hits we get it caught up, so were wanting to file chapter 13 to help lower our mortgage payment, can this be done in a chapter 13?

Like | Dislike | Share | Posted: Tue, 12/28/2010 - 15:42 | Post subject:

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

i have filed bankruptcy in the past how can i find out when i filed, if i may need to file again.

Like | Dislike | Share | Posted: Tue, 02/02/2010 - 07:30

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

Hi annabella,

You can definitely file a bankruptcy. Whether you would lose your home or not would depend upon the type of bankruptcy you file. If you file Chapter 13, then the lender would give a payment plan to pay off the dues. This will help you save the property. If you file Chapter 7 and reaffirm the mortgage, then you would have to pay the dues regularly. Once you pay off the dues, your property would be free and clear.

Like | Dislike | Share | Posted: Mon, 11/02/2009 - 22:23

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

hi atate,

rather than going for chapter 13 bankruptcy filing, you should contact your lender and apply for a loan modification. this will help you in getting a repayment plan to pay off your dues at an affordable rate.

thanks

Like | Dislike | Share | Posted: Tue, 12/28/2010 - 20:22

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

Hi PAT!

Welcome to forums!

You can download the bankruptcy forms from the internet. You can check out the given page which may try to help you in downloading the paperwork: "http://www.guaranteedbankruptcy.com/guaranteed/13Index.asp".

It is always a better option to contact a bankruptcy attorney and take his help in filling out the bankruptcy paperwork. If you hire an attorney, he would look into the matter and help you to decide which chapter is best for you.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 10/19/2009 - 23:49

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

x-spouce & I own home as partners in common - he wants to file 7 - how will this affect the property and me?

Like | Dislike | Share | Posted: Mon, 01/25/2010 - 14:41 | Post subject:

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

Hi babygirltiffaney!

Welcome to forums!

You will have to contact a bankruptcy attorney and discuss your case with him. He will let you know what steps you can take in this matter and whether or not you can file bankruptcy Chapter 13.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 10/24/2011 - 22:30

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

they dismissed my husband chapter 13 and his stay since my name on the deed can i i convere u.s. bank into my chapter 13 my husband fighting cancer and i will do any thing.

Like | Dislike | Share | Posted: Mon, 10/24/2011 - 13:57 | Post subject:

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

Hi ginabina,

You will be able to file bankruptcy in order to get rid of your credit cards and medical bills. However, immediately after your bankruptcy filing, you will not be able to get a mortgage for buying an apartment. You can go for a settlement with the credit card company in order to get rid of your credit card bills. However, it will be your creditor's discretion whether or not he would remove the negative item from your credit report. Normally, a negative item remains on the credit report for the next 7 years.

To Guest,

The second mortgage lender will have the rights to foreclose in order to recover the dues. However, as there is a first mortgage on the property, if the second lender forecloses it, he will be liable for paying the dues of the first lender before satisfying his own dues. So, in most cases, the second lender does not foreclose the property.

Thanks

Like | Dislike | Share | Posted: Thu, 09/30/2010 - 23:41

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

Can you be married if your potential spouse is going through a Chapter 13. Especially if you live in a common law state, could the creditors go after you?

Like | Dislike | Share | Posted: Sun, 11/15/2009 - 23:49 | Post subject:

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

Welcome Guest,

Your husband will have to list the property as his asset when he files bankruptcy. The trustee may sell it off to pay his creditors. However, as you are one of the owners of the property, you will receive your share of the property. As he is filing bankruptcy, it won't affect your credit report.

Like | Dislike | Share | Posted: Mon, 01/25/2010 - 22:08

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

Hi Annette,

A question similar to yours has been answered in the given page:
http://www.mortgagefit.com/problems/noincome-mobilehome.html

Please have a look at it. I hope it will help you.

Like | Dislike | Share | Posted: Sun, 09/27/2009 - 23:12

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

Do you have pro se paralegal company's to do all the paper work and docs ?
How much ?

Like | Dislike | Share | Posted: Tue, 05/18/2010 - 14:21 | Post subject:

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

My attorney asked to receive an appraised value of my home prior to filing chapter 13, why? :?

Like | Dislike | Share | Posted: Sat, 03/06/2010 - 11:00 | Post subject:

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

My attorney asked to receive an appraised value of my home prior to filing chapter 13 why?

Like | Dislike | Share | Posted: Sat, 03/06/2010 - 11:05 | Post subject:

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

Your query has been replied to in the given page:
http://www.mortgagefit.com/inprocess/about35795.html#154166

Take a look at it. Hope it helps you.

Like | Dislike | Share | Posted: Mon, 03/08/2010 - 03:28

tica1203's picture
tica1203 | Joined: March 6, 2010 01:10 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am filing bankruptcy chap 13 because of my 2nd mortgage. I had a hearing in dec and missed the hearing. I was know sent a motion to proceed with sale and was granted by the judge. On this it looks like the judge wrote sale may not be canceled. My atty said we can request a motion to extend and refile the chap 13.... Is this something that can be done or is the lawyer trying to get more money out of me??? deperate!!!! BTW i am in Florida.

Like | Dislike | Share | Posted: Sat, 03/06/2010 - 14:19 | Post subject:

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

i own a property and it does not have a mortgage on it. it is residence for my mentally ill father. it is one of the main reasons i can not file chapter 7 bankruptcy. can i deed it to someone else and then be able to file bankruptcy?

Like | Dislike | Share | Posted: Thu, 10/07/2010 - 17:51 | Post subject:

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

Welcome anonymous,

As per the new rules, you'll have to wait for 8 years in order to file Chapter 7 bankruptcy again.

Like | Dislike | Share | Posted: Tue, 02/01/2011 - 22:52

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

Hi Dianejean!

Welcome to forums!

It is your bankruptcy attorney who will help you in knowing how you would list the property while filing bankruptcy.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 06/12/2012 - 00:21 | Post subject:

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

"can I even file for bankruptcy while owning this quit deed"
Bankruptcy filings may be your option here but you need to talk to your mom about it, as there is life estate on property which allows your mom to have absolute right to occupy the property till she dies.

Like | Dislike | Share | Posted: Sun, 10/15/2006 - 20:56 | Post subject:

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

Hi Seaghost,

Welcome to the forums.

"I want to know if I file for chapter 7 or 13 bankruptcy will I risk losing her house?
"
When you file Chapter 7, you need to list assets and liabilities which are non-exempt so that you can use them to pay off outstanding debts. But the exempt properties remain with you. It is better if you can consult an attorney regarding which of your assets will be taken as exempt or non-exempt.

If you file Chapter 13, you may be allowed to keep your home with you and also your personal property. Your debts will have to be paid off by a repayment plan approved by the court.

Thus, you do have a fair chance of keeping your home with you. But whether you can file for Chapter 7 or 13 will have to be determined through the Means Test as stated by the Bankruptcy Law enforced in 2005.

Get a fair idea of the Bankruptcy Law and Means Test and know more on How to Check if you qualify for Chapter 7 or 13.

Thanks,

Caron.

Like | Dislike | Share | Posted: Sun, 10/15/2006 - 21:27 | Post subject:

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

Hi seaghost,

You may not lose your home if you can protect your home with the help of homestead exemption. Know more on Homestead Exemption from a previous discussion.

Thanks,

Sara.

Like | Dislike | Share | Posted: Sun, 10/15/2006 - 22:38 | Post subject:

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

I say wouldn't it be good if you can look for a mortgage to pay off the $20,000 debt instead of filing for bankruptcy.

Like | Dislike | Share | Posted: Mon, 10/16/2006 - 11:48 | Post subject:

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

hi guest,

you haven't mentioned the type of bankruptcy you are planning to file. in case of chapter 7 bankruptcy, the creditors will have the right to demand payments from your cosigners. but in case of chapter 13 bankruptcy, as there is a payment plan, your creditors cannot collect any payments from your co-signer unless it becomes clear that the plan is not sufficient to pay the entire owed amount.

in my opinion, it would be better if you can consult a qualified lawyer while setting up your repayment plan in case of chapter 13. you should also note that you can covert chapter 13 to chapter 7 but then your creditors will have the right to demand payment from your cosigners.

thanks.

Like | Dislike | Share | Posted: Wed, 01/21/2009 - 02:10 | Post subject:

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

Hi Guest,

Yes, bankruptcy can be used to erase the medical bills and credit card debts. However, in my opinion, rather than filing bankruptcy, it will be better if you can go for a debt consolidation. You can contact any debt consolidation company and consult with their financial coach. I know of a debt consolidation company - "debtconsolidationcare.com". You can visit their website and speak to their financial coach and they may suggest you ways to pay off the debts.

Debts other than back taxes, student loans, alimony, fraudulent debts, child support and government penalty can be discharged off by filing bankruptcy. To know more about bankruptcy, check out the following link:
http://www.mortgagefit.com/bankruptcy.html

Thanks,

Jerry

Like | Dislike | Share | Posted: Mon, 01/19/2009 - 02:40 | Post subject:

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

Hi there!!! I will be filing bankruptcy due to some medical bills which I has to incur in the past and also due to some credit card debts. Are these type of debts erased completely by bankruptcy??? Can you tell me what type of debts are normally erased by bankruptcy???

Like | Dislike | Share | Posted: Mon, 01/19/2009 - 02:28 | Post subject:

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

Hi there…I am distressed and I'm getting confusing information from different people. Hope someone out here is able to help me…Can any of you guys tell me whether co-signers are protected in case someone files bankruptcy??? I am filing bankruptcy…But the problem is my sis is a co-signer for my property. So will my creditors try to collect debts from my sis if I file bankruptcy??? I just hope that she does not gets affected by my bankruptcy filings…Anybody out there…help please…Thanks

Like | Dislike | Share | Posted: Wed, 01/21/2009 - 01:58 | Post subject:

Page loaded in 0.310 seconds.