Jul
I recently went to a bankruptcy lawyer for a free consultation because I was laid off from my job a few months ago, have a 1 year old, a husband on disability and over $60,000 in credit card debt and automobile loans. The lawyer gave me some forms to fill out and on there is a list of household items that I’ve to account for and the value of each that I have. will i have to sell my stuff? My car is a lease , if included in chapt 7 filing will the automobile be taken from me? Please help if you know about this type of stuff…thanks
Answer:
The list that the attorney gave you was to do an “itemized” list of your household items…have you ever listed anything for an insurance quote for homeowners insurance??? It's similar to that…all you need to do, is scan each room in your home, list what you’ve in each room…not all the knick knacks and what nots…list an estimated value of each room if you had to replace the contents of the room. Do that for each room you have in your home, but remember…don't do all the little items, it's the entire contents of one room, then a total for the entire household totaling everything. They won't make you sell your stuff, they are looking at your income, your assets and your debts, but, no they don't come and make you give up your possessions. You can keep the automobile in a Chapter 7…they should have advised you on this when you had your consultation. You re-affirm on the debt..meaning, it's included in the bankruptcy, but you are agreeing to pay the payments until it is paid off. You will need to do your 1st credit counseling before you go to court, You’ll get your court date (341 Creditors Meeting), you go to court once, then you will have to take the last half of the credit counseling a few weeks after you go to court, it's advised that you do that as soon as you finish with your court date….60 to 90 days your bk will be discharged. Any questions, you can email me…
Good Luck!
Answer:
I went thru a C7BK recently. If you can afford your vehicle payment and don't fall behind, you do not have to give it back. Do NOT reaffirm the debt after BK. This way if you ever get to a point where you can't afford it, you just give it back without any recourse. As long as you make your payments on time you keep the car. If after your BK is discharged and you fall behind they can take the vehicle but you won't have to pay a deficiency balance when sold as long as you DO NOT reaffirm the debt. In short, the lender you’re paying now will not be affected if you make your payments and they can't take the automobile if you’re current on payments. As for your household items, NO you do not have to sell anything. They are just looking to see if you’ve lots of vehicles or houses available as assets. Go to http://hummingbird.org/ for BK questions and information
Answer:
YEs, not unless you do a chapter 13 where you’ve to repay everything back.. Even when you lease a automobile, you are still financing obviuosly. I'm quite sure if you went that route(chapter 13) your lawyer could work out a superior arrangement….with the chapter 7, they’re not going to let you’ve a free vehicle and plus it is collateral.
Answer:
Bottom line you borrowed over $60,000 from a number of creditors with a promise to pay them back. You are breaking that promise by filing bankruptcy. If they can't get all their money back, they at least want access to as many liquid assets of yours as they have the ability to. You probably used much of their money to purchase them.
Answer:
You don’t owe any money for the car so I betting, not being a lawyer, that you’d get to keep the vehicle as long as you keep up the lease. Leasing by the way is generally a bad idea, but that’s for a different day.
After you fill out your paper work, then the judge will decide if you meet the qualifications for chapter 7 or chapter 13. T here’s a “means test.” This test determines whether you will qualify for Chapter 7 bankruptcy, which typically eliminates all of your debts, or Chapter 13 bankruptcy, which helps you repay your debt through a repayment plan.
If you do file under chapter 7 there will be a meeting with your creditors, then a court-appointed trustee will figure out which of your assets can be sold. There are some exempt items, Home furnishings, Tools of trade, some jewelry, clothing, but it does very from state to say.
The profit from liquidating your assets is split among your various creditors. Some items will be turned over to the creditors, some will be sold, depending on your contract with the creditor.
Under chapter 13 the court will set up a payment plan that runs anywhere from 3 to 5 years, you’ll make payment to the court and generally after that time you a debt free. Chapter 13 will grant you to keep most of your stuff.
Please don’t worry too much, many people have been there and done that, you’re not alone. Yes it will injured your credit but you need to do what you need to do. Good luck and hold your head up.
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