What needs to happen before you file for Bankruptcy?
I have so much debt. I can pay for my house mortgage and my car payment but it’s my credit card bills that kill. I have been choosing to pay only my mortgage and car bills. What can I do? I know I can’t make payments on my cards without it effecting me being able to pay for my house and car. Can I file for Bankruptcy? I know I made a mistake charging up a storm. If I file for BK I don’t what to lose my home.
Posted May 9th, 2010 in Bankruptcy Q And A. Tagged: bankruptcy, bk, car payment, cards, credit card bills, mistake, mortgage.
Yes you can file bankruptcy and keep the home and car. If you are current you may even be able to file a chapter 7, but this depends on several factors: your income, the equity in your home and cars versus how much you can exempt and other factors. You need a consultation with a bankruptcy attorney about this.
May 9th, 2010 at 2:42 pmyour best option is to get a lawyer, let them know what is going on and they can tell you ur best option…
May 9th, 2010 at 2:42 pmI agree with the 2 other answers above. Good job guys.
I would add – you might consider telephoning the charge card places & offering to settle for a lessor amount (come tax refund time) OR interest rate reduction and less payments until paid in full.
Also, with the responses advising to discuss with an attorney – I’d only add that most times the first consultation with an attorney about filing for bankruptcy are free.
May 9th, 2010 at 2:42 pmIf you have an income and can keep paying some of your debts there may very well be an alternative to bankruptcy. Bankruptcy is an absolute last resort and will stay on your record for 7-10 years.
Before you take any irreversible decisions, do your own research. Check out this website which has a lot of useful information about how you might avoid bankruptcy.
If you do feel that you have no alternative to bankruptcy, then I do recommend that you consult a qualified bankruptcy attorney. An attorney will advise the best route for your situation and will keep your creditors at bay.
I hope this helps. Good luck!
May 9th, 2010 at 2:42 pm