I'm so scared, please help

[Jennmw]

I'm so scared and lost. My husband and I are in a place we never thought we would be, maybe declaring bankruptcy. We are not late on anything right now but this is the first month where we aren't going to be able to pay our car payments. Our credit is still in the 700's.

We moved back to my hometown so our son could be close to his grandparents, the move financially killed us but we knew we would be able to get back on our feet within 6 months and we did. But, we weren't expecting my husband to lose his job last December and the job he has now is basically a $20,000 pay cut. We have been moving debt around, got a home equity loan, etc thinking things would improve because in the past they always have, but not anymore.

I'm scared if we go this route that they will take our house (no equity in it because of our home equity loan), our cars (we owe more than they are worth), and everything we own. My car we bought in October, we traded my old car in for this one because it deferred payments for 120 days but we had to roll my old loan into it which made the payment $100 higher. I don't want to lose any of it. My husband and I are always tense (him more than me). I never thought in a million years that we would end up to this point.

I know we need to call a bankruptcy attorney but we are waiting on to see if my husband gets a certain job he's been talking to someone about (although it doesn't right now look promising)because the pay would push us to the point we could live without filing. But, anyway, how does Chapter 13 work? Do you get to decide what you can keep? How do they do the payment plan? I assumed that you take what you owe on it and then divide by the 36-60 months that the repayment plan is, is that correct?

Also, I pray this doesn't happen, but in the next 5 years we could get a huge inheritance, will we get to keep it?

My husband is a title searcher so he hears so many horror stories in the court houses about people thinking they get to keep the house or car and they come out in tears so we are soooo scared.

Thanks for any info

[dac67]

If you are in a 13 and you get an inheritance they sure can and most likely will take it. My lawyer told us , "don't let your father die while in a 13". Cause supposedly he has willed us a house, not a great one but none the less a house, and he said that is one of the worst things that can happen to people in 13's, is that they get an inheritance or are willed property and it is taken away. Not everyone loses their house or cars, we didn't lose our cars. It all depends , every case is different.

[rrockinggramma]

In a chapter 13, generally you can keep the your property. But you can also keep property in a chapter 7, depending on your state's exemptions and your meeting the qualifications. To really know your options and how a chapter 13 and a chapter 7 would work for you, make an appointment and meet with an attorney in your area. That way you would know whether waiting for that great job is a good idea or not, although in my experience, wishing never made it so. Also meeting with an attorney will let you know which chapter is best for you and will allow you to keep what you want to keep. Good luck.