Can I file and keep my house?

[brandon]

Hello,

I have recently been laid off from my job. As a result of this i am unable to fine another job paying anywhere near what i have been making.

Currently i have a 20k balance credit card and a car loan that is at 53k that I am about to get behind on. Both of these lines of credit are at the same credit union (dont know if that matters). I also own a condo that i began buying 6 months before i was laid off. I have not missed a payment on it, its in my wife and I's name. I also have a handful of other credit cards with 0 balances.

Can i file bk on just the car and the credit card and keep my condo? (70k total) The car and the credit card are only in my name, no my wifes. As bad as it sounds I'm thinking i need to go buy a cheaper car ASAP and keep that one current so that when I file (if i can) i will still have my hosue and a car to drive.

What are my options if i dont find another job soon? If i have to take a cash advance off a credit card to get by, should i wait six months from that date?

[lrprn]

Welcome to BK Forum, brandon - glad you found us!

Currently i have a 20k balance credit card and a car loan that is at 53k that I am about to get behind on.

What kind of car do you have with a $53,000 loan? Wow.

Both of these lines of credit are at the same credit union (dont know if that matters).

What matters is if your checking/savings accounts are at this same credit union. Then you are at risk from cross-collaterization (a very common term in credit card and loan contracts) that allow the credit union to take money from your income account to pay deliquencies in other loans and cc's without your permission. If this is the case, then you need to open a checking/savings accounts in another bank before you miss any payments on cc's or the car.

Can i file bk on just the car and the credit card and keep my condo? (70k total)

No, you can't. Filing bankruptcy means listing ALL your debts - you can't pick and choose. You may still be able to keep the condo if your state's bankruptcy exemptions protect any equity you may have in it. What state are you in?

As bad as it sounds I'm thinking i need to go buy a cheaper car ASAP and keep that one current so that when I file (if i can) i will still have my hosue and a car to drive.

Whoa - not so fast. Two questions to ask first - What is the car's market value vs. the $53K loan value? And when did you purchase the car?

What are my options if i dont find another job soon?

If your current job can't support the financial situation you are in now, then your choices are pretty simple - find another way to make more income or start letting assets go. Sorry to be so blunt, but at this stage it's too easy to get caught up in the emotions of going broke. You need to look at this as a cold, hard, financial decision because that's what it needs to be and that's how all your creditors look at it.

If i have to take a cash advance off a credit card to get by, should i wait six months from that date?

Would encourage you to set up 3-4 free or low cost initial consultations with several experienced bankruptcy lawyers in your area before doing that. Most of us wait too long and do things like take cash advances that may not be necessary and make a straightforward case like yours a lot more complicated than it needs to be.

Get going on those appointments! That's the next step to take on this journey. And remember that condos and cars are only things and things can be replaced - your peace of mind and the love between you and your wife cannot.

Keep asking questions as you think of them - we'll help you sort things out as much as we can. Come back and let us know what you find out from your lawyer visits, ok?

[brandon]

What kind of car do you have with a $53,000 loan? Wow.

-What differnce does that make?

What matters is if your checking/savings accounts are at this same credit union.

-They are not, my checking is at a bank, not my credit union.


No, you can't. Filing bankruptcy means listing ALL your debts - you can't pick and choose. You may still be able to keep the condo if your state's bankruptcy exemptions protect any equity you may have in it. What state are you in?

-Are you sure about this? I'm in California, and I keep hearing by word of mouth that since the condo is in my name and my wifes name i just have to reconfirm or not include them in my list of creditors when I'm filing...

Whoa not so fast. Two questions to ask first - What is the car's market value vs. the $53K loan value? And when did you purchase the car?

-Purchased the car 4 months ago, its value is around 30k. Negative equity from trade is the difference in the amount.

If your current job can't support the financial situation you are in now, then your choices are pretty simple - find another way to make more income or start letting assets go. Sorry to be so blunt, but at this stage it's too easy to get caught up in the emotions of going broke. You need to look at this as a cold, hard, financial decision because that's what it needs to be and that's how all your creditors look at it.

-I dont have a job, I was laid off.

Also, no equity in the condo, it barely breaks even because of the housing market in my area.

Thanks

[keepmine]

-Are you sure about this? I'm in California, and I keep hearing by word of mouth that since the condo is in my name and my wifes name i just have to reconfirm or not include them in my list of creditors when I'm filing...

Does not matter where you live. You must list ALL creditors. Yes, you may reaffirm but, the mortgage must be included in the creditor matrix.
If you are going to file, be sure you get your transportation needs arranged before filing.

Thing is, you need income to support mortage and auto loan payments. A job should be your first priority. You can always file bk but, you have to support yourself first.