Do I file for chapter 7, 11, or 13 bankruptcy? 26 Answers as of January 21, 2013

We had an equity line of credit on a home we no longer live in. The home was foreclosed & resold by the Lender. We have been trying to negotiate an unsecured 3K credit card and the 66k equity line of credit (same bank). My spouse lost his job. We wrote to the attorney we could no longer offer the original lump sum, offering half. Today we received a copy of the Petition for Summary Judgement. Can these 2 debts be included in a bankruptcy? We can manage our current mortgage and one of our 2 car payments on one income. Do we risk losing both vehicles and our current home?

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Heupel Law
Heupel Law | Kevin Heupel
Yes you can discharge those debts and based on your scenario, a Chapter 7 is probably the best solution. You are allowed up to $10,00 of equity in cars and $60,000 in homes. If you have more equity, then you might file Chapter 13. Please our office at (303) 955-7570 for a free consultation and we can provide you with better advice.
Answer Applies to: Colorado
Replied: 8/10/2011
Tucker Legal Clinic
Tucker Legal Clinic | Samuel Tucker
You try to file a Ch 7 premised on the situation that you are current with you present mortgage and vehicle payments. You would have to surrender one vehicle if you cannot continue payments. The 3K and 66K debts would be discharged in Ch 7.
Answer Applies to: Mississippi
Replied: 8/1/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You need to see a lawyer. You will probably not lose anything in the bankruptcy, but more facts need to be flushed out.
Answer Applies to: California
Replied: 8/1/2011
Eric J. Benzer, Attorney at Law
Eric J. Benzer, Attorney at Law | Eric Benzer
Not an 12
Answer Applies to: Maryland
Replied: 7/30/2011
Colorado Legal Solutions
Colorado Legal Solutions | Stephen Harkess
A Chapter 7 bankruptcy probably makes the most sense, but you need to discuss your full financial picture with an experienced attorney to make sure there are no reasons that a Chapter 13 would be more appropriate. The debts you outline can be addressed in bankruptcy and there is a way to keep your assets. Whether this will be possible in a Chapter 7 filing will depend on how much equity you have in your house and cars.
Answer Applies to: Colorado
Replied: 7/29/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    The following facts are involved in the decision to file bankruptcy. There was an equity line of credit on a home you no longer live in. The home was foreclosed and resold by the lender. You have been trying to negotiate an unsecured 3K credit card and the 66k equity line of credit (same bank). Spouse has lost his job. You wrote to the attorney that you could no longer offer the original lump sum, offering half. You received a copy of the Petition for Summary Judgment. You want to know if these 2 debts can be included in a bankruptcy. You can manage current mortgage and one of your 2 car payments on one income. You want to know whether you risk losing both vehicles and your current home. This could be a chapter 7 to discharge the debts. It could also be a chapter 13, but it is not a scenario for chapter 11 reorganization. You can keep the car you are paying for and the house which is being paid.
    Answer Applies to: California
    Replied: 7/29/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Sounds like a 7 (straight liquidation) would be most desirable. You will have to see if you are OK with regard to income/expenses, such that there is no surplus income after living expenses are paid. Sounds like that won't be a problem. Likewise, you'd have to make sure you pass the Means Test. These are technical issues, you might want to talk to a bankruptcy attorney, but if the house is gone, there would be no reason to desire a 13; you'd file 13 only if you could not qualify for a 7. 11s are business reorganizations for the most part - wouldn't apply here.
    Answer Applies to: California
    Replied: 7/29/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    The numbers that make one chapter work likely make the others not work. With the right numbers, you may be able to discharge or reduce the claims. It will be easier to do that if you file before the summary judgment. You will want an attorney to run your numbers and determine what chapter you qualify for.
    Answer Applies to: Georgia
    Replied: 7/29/2011
    Glen A. Kurtis, P.C.
    Glen A. Kurtis, P.C. | Glen A. Kurtis
    Yes you can include the debts in a chapter 7 bankruptcy. Depending on the value of the house and the car you most likely would not lose them. The exemptions for both were recently raised making it easier for debtors to retain these assets.
    Answer Applies to: New York
    Replied: 7/29/2011
    Lewis Adams and Associates
    Lewis Adams and Associates | Lewis P. Adams
    To determine which Chapter to file under will require additional information. However, depending on the size of your family and the amount of income you have, Chapter 7 may be the best approach if you need to file for relief. If the current house has little or no equity, the home would not be taken by a Chapter 7 Trustee and sold. If you and your husband are both on the title, in Utah you both have a $20,000 homestead exemption, for a total of $40,000.00. The homestead exemption is to protect equity over and above what is owed on the mortgage. In addition, the Chapter 7 trustee would also have to have sufficient equity after the exemption to pay a Realtor and closing costs before selling the home.Each of you have a $2,500 exemption in vehicle equity, which can be placed on one or two separate vehicles. If you have equity that exceeds that amount, one or both of the vehicles may be sold to pay creditors. Vehicle value in Chapter 7 is liquidation (trade in) value. If the mortgage payments are current and car payments are current, the lenders will not take their collateral. The two obligations for the credit card and the mortgage equity line can certainly be included in a Bankruptcy.
    Answer Applies to: Utah
    Replied: 7/29/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    So one house was foreclosed and now you have another? If so, you need to keep up those payments to keep the house. If not, bankruptcy eliminates your obligation to pay anything on the foreclosure. You may be able to keep the car and at least one car. A lawyer really can't afford to reduce fees to 50% and you need an attorney's help. Maybe a friend or family member can give/loan you that balance.
    Answer Applies to: Virginia
    Replied: 7/29/2011
    Breckenridge and Walton
    Breckenridge and Walton | Alan D. Walton
    Contact an attorney for advice. You do not provide enough information for a response.
    Answer Applies to: Michigan
    Replied: 7/29/2011
    Law Offices of Daniel Moulton
    Law Offices of Daniel Moulton | Daniel Moulton
    Too may questions and variables. You should file a Chapter 7 if you qualify as far as income and equity in the home and cars are concerned. Your income must be below the medium for a household your size and you must have little equity in the home and cars. You need to fill in the blanks.
    Answer Applies to: Illinois
    Replied: 7/29/2011
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    You should file a Chapter 13, to protect the car and the house and get rid of the other stuff. You will be required to make plan payments for 3 or 5 years, depending on your income, but these should be minimal. You definitely will not file Chapter 11. You might file a Chapter 7, but it depends on the equity you have in your present home, as to whether you can protect it or not. You need to discuss the details with a bankruptcy attorney.
    Answer Applies to: California
    Replied: 7/29/2011
    Grasso Law Group
    Grasso Law Group | Charles Grasso, Esq.
    Both the credit card debt and the old equity line of credit can be included in the bankruptcy. The issue of which chapter to file is more complicated and very dependent on your specific circumstances, including your income, whether or not you have equity in your home and if so how much, and the total amount of your debt.
    Answer Applies to: California
    Replied: 7/29/2011
    Law Office of Bobby Yaghoubian
    Law Office of Bobby Yaghoubian | Bobby Yaghoubian
    Both the home equity line of credit and the credit card may be included in your bankruptcy filing. What chapter you can file, if it all, really depends on the household income, expenses, and size. Generally, people filing for bankruptcy may keep their vehicle as long as the loan/lease is paid on time. The same can be said about your home. Generally, if you make your payments on time, you can keep your home. Of course, the amount of equity will need to be taken into consideration.
    Answer Applies to: California
    Replied: 7/29/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    I would advise a ch 7 assuming you qualify. In regard to the secured car and home loans, you must be able to afford these or you will lose them. The bk will not help you with these but, of course, it will discharge all the other unsecured debt.
    Answer Applies to: California
    Replied: 7/29/2011
    Selleck Legal, PLLC
    Selleck Legal, PLLC | Stacey Selleck
    In order to determine what chapter you are eligible to qualify for your household income needs to be calculated along with your monthly expenses. Also, we would need to determine what your assets are and what assets are eligible to be exempt. After determining what chapter you qualify for more specific answers can be determined. That being said, generally you can include these debts in a bankruptcy and they will be discharged. If you are current on your house payment and vehicle payments there is a good chance you will be able to reaffirm the obligation (keep and remain responsible for the debt associated with those items).
    Answer Applies to: Michigan
    Replied: 7/29/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Depends on what equity you have in the vehicles and the home and if you then have enough exemptions to apply to that equity. You should consult an attorney to make sure you can protect any equity.
    Answer Applies to: California
    Replied: 7/29/2011
    Law Office of Xochitl Anita Quezada
    Law Office of Xochitl Anita Quezada | Xochitl Anita Quezada
    You can have only so much equity in your home and cars to qualify for a chapter 7. You need to call a bankruptcy lawyer who can get the information from you and determine whether you qualify based on your assets.
    Answer Applies to: California
    Replied: 7/28/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Try chapter 7 before anything else. Will get rid of lawsuits and you keep house and car if no unprotected equity and making payments.
    Answer Applies to: California
    Replied: 7/28/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    You need to talk to a bankruptcy attorney to determine which chapter you qualify for.
    Answer Applies to: California
    Replied: 7/28/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    What chapter of bankruptcy you should file will depend on whether or not you can qualify for a chapter 7 bankruptcy based on your household income and family size. If you qualify you should file a chapter 7, if you don't you will have to file a chapter 13. Chapter 11 is for businesses.
    Answer Applies to: Washington
    Replied: 7/28/2011
    William C. Gosnell, Attorney at Law
    William C. Gosnell, Attorney at Law | William C. Gosnell
    A chapter 7 is a clean slate, a fresh start. You wipe out the debts. Yes, you can keep the house and a car but you must negotiate reaffirmation agreements. A Chapter 13 is a payback plan for you to pay off all of your creditors. Hire a Bankruptcy Lawyer and go have a meeting to decide which is best for you.
    Answer Applies to: Tennessee
    Replied: 7/28/2011
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    A Chapter 7 is usually preferable since it discharges the debt (meaning you don't have to pay for it). The only concern would be if there is equity in the house or the cars that the Chapter 7 trustee would want. You can reaffirm both of these (you agree to pay regardless of the fact that you filed bankruptcy). In either Chapter 7 or 13 if you can't pay for something (house, car), you risk losing it. You should consult with an attorney to discuss whether Chapter 7 is your best option.
    Answer Applies to: Utah
    Replied: 1/21/2013
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