Questions and advise

[Lesalea67]

I have an appointment with an attorney next week to file bankruptcy. He said I could file Chapter 7, I would prefer Chapter 13. I really want to keep my car and my house. My house is valued at about $60,000 and I owe about 19,000 on it. My car I still owe $11,000 on. I need my car to get back and forth to work.

My question is I have a few credit cards and unsecured debt, but I also have some secured loans. How is that going to work on bankruptcy? I see alot of information on unsecured but not much on secured debt. The security I put on those loans are all the same items on different loans, computers things around the house, that type of stuff.

I also have numerous payday loans, I know I should of known better. I have storefront and online ones, it's one of the reasons I am considering this. Some of these are new loans and I have refinanced the others that are old. My question is is there anyway to include them in the BK even though they are newer than the 70 to 90 day span.

I am really worried and so stressed out over all this. I tried to get a debt conslidation on my home with the time I have in it. I have lived in my house 14 years, but my house is a Habitat for Humanity house and it's not allowed. I have considered selling it, but the housing market is not great here where I live, there were houses in my neighborhood that have been on the market a year or more.

If anyone can help me with some answers I would appreciate it. Thanks.

[LadyInTheRed]

What state do you live in? Is the homestead exemption large enough to cover the equity in your home? How much is your car worth? Is your income above or below median for your household size and state?

If you can exempt the equity in the car and house, you won't loose them in a Chap 7, as long as the payments are current. If you are behind on the payments, you would need to either catch those payments up before filing a 7 or file a chap 13 and include the arrears in your plan. Will you be able to afford your car and home if the rest of the debt is discharged?

Have you met with this attorney before? Have you consulted with at least 2 other attorneys? If the answer to either of these questions is no, leave your checkbook at home. Don't think of the appointment as an appointment to file BK. Think of it as an opportunity to interview the attorney, get his recommendations and get answers to your questions. You should consult with more than one attorney before deciding which to hire.

All of your debt must be included in your BK. A creditor might object to the dischargeability of a recent debt. Unless a creditor already has a judgment against you, you can probably wait to file until after the 70 or 90 days has passed. An attorney can tell you whether that is advisable based on the facts surrounding the recent debts.

Chances are that lenders are not going to bother repossessing personal property, but if you file BK and don't reaffirm the debt, they could if they have a properly perfected lien. If they want your stuff, let them take it, but make them come get it. Anything you really need can be replaced.

Have you read the stickies on this board to get a good understanding of the advantages and disadvantages of 7s and 13s? If not, take the time to do so and ask about anything you still have questions about. There is a lot of valuable information here that will help you prepare for attorney consultations. The more educated you are before your appointment, the more productive the appointment will be and the better you will be able to weed out the good attorneys from the incompetent.