Help I have no idea

[Sandra]

I own my own home, its paid for. I am financing 2 cars one for myself and one for my husband. if I file bankruptcy can either car be repod. My payments are up to date on each car, and if I file do I keep making payments? Which Chapter do I file so that I get to keep my home and cars but get my debt erased? Thanks for any info any one can help me with. Sandra

[edwards2]

If your home is paid for and you are up to date on your car payments, what debt are you filing on? Typically a Chapter 7 is for debtors with more than debt than disposable income who are usually current on their payments. There would be no reason for a company to repossess your vehicles if you decide to reaffirm the loans. I will let our moderator address your questions because he is better able to answer them but I would think a house that is paid for is a definite asset.

[Sandra]

reply

i may own my home but i have alot of cc debt and loans secured and unsecured and my car notes and i have little income i have injured myself and cant pay it all. like i said i rellay dont know what do do or how to begin i have only heard bits and peices about this sandra

[HHM]

Well, if I recall, TX has an unlimited exemption, however, under the new BK law, if you haven't lived in the house for 1250 days before filing, you can only claim $125,000 maximum homestead exemption (and unfortanatly, that provision of the new BK law, when into effect when the President signed the new law in April, the rest of the law goes into a effect Oct. 17).

What about your husbands income?

Realize, that even though you and your husband may consider your assets and income seperate, the Bankruptcy court will not.

[Cmonlottery]

You need to decide which bankruptcy you want before you file. If you have filed a homestead exemption on your house it is probably exempt(an attorney can tell you for sure). If you can no longer afford the car notes let them go(chapter 7) unless you want to spend the next 5 years paying for them(Chapter 13). If they are not new cars Chapter 13 is probably not a good idea.

[Sandra]

I Have Not Even A Clue Lol

OK WE KNOW BOTH INCOMES ARE INCLUDED WE HAVE NO IDEA WHICH BANKRUPTCY TO FILE, WE OWN THE HOME BEEN HERE 10 YEARS, THE CARS ARENT NEW BUT WE NEED THEM I THOUGHT THAT IF WE FILED SOME KIND OF BANKRUPTCY THAT ALL OUR DEBT WAS FORGIVEN EVEN THE CARS WITH NO FUTURE REPOCUSSIONS AM I LIVING IN A DREAM WORLD? LOL :o

[Sandra]

We Dont Make Alot, Even Combined And Our Home Isnt Worth Even $50,000. But Its Ours And It Is Home. Our Cars Arent New, The Combined Balance Due On Them Is Less Than $15,000. We Need These Things. I Was Told That If We File Bk, Not Sure Which One, Even If We Stopped Making Payments, We Get To Keep Them And In The End, Maybe Pay The Dealer About 10 To 30 Cents On The Dollar As Long As We File Before The New Laws Take Effect Is This True?

[Cmonlottery]

If the cars are worth much less than what you owe, you can do a cramdown in chapter 13. Problem is you would still end up paying them over the next 3 years(maybe 5). Add that to the trustees fees and your attorney fees you probably would not end saving much money.

Check the blue books and get an estimate of how much your cars are worth.

[HHM]

OK WE KNOW BOTH INCOMES ARE INCLUDED WE HAVE NO IDEA WHICH BANKRUPTCY TO FILE, WE OWN THE HOME BEEN HERE 10 YEARS, THE CARS ARENT NEW BUT WE NEED THEM I THOUGHT THAT IF WE FILED SOME KIND OF BANKRUPTCY THAT ALL OUR DEBT WAS FORGIVEN EVEN THE CARS WITH NO FUTURE REPOCUSSIONS AM I LIVING IN A DREAM WORLD? LOL :o

In short, yes, you are dreaming. First, you don't get to eliminate the debt on your card AND keep the cars. Regardless of which type of BK you file, if you want to keep the cars, you have to pay for them. If you don't want the cars, you can give them back, and not owe any money on them.

In a chapter 13, you can do what is called a cramdown, meaning that during your chapter 13 payment plan, you only pay what the cars are worth at the time your file (which is usually less than you owe).