QUESTION
What do we need to do to qualify for bankruptcy?
Asked on Mar 14th, 2012 on Bankruptcy - New York
More details to this question:
My husband I work full-time and he has a military retirement. We went and seen a lawyer about bankruptcy. We have a second home. It's a trailer on a river. He said we would have to get rid of it and do one of the chapters. I want to go to part-time work, because I'm always sick with something. Can we move to the home on the river and bankrupt the house and large amount of debt? We owe 2 more years on the trailer and 16years on the house. I have school loans also. I'm 2 months behind on my house payments because of my surgery in November. We filled out paperwork with our bank and we didn't qualify for anything. We are always in that bracket of always been denied for anything and now my credit score is shot because of the late payments. I stopped making payments last year with all credit cards until we came to an agreement, but some of them are still being bullies. What should we do?
8 ANSWERS
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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There isn't any real qualification for bankruptcy but some folks speak that way about Chapter 13 which is not a good solution for a lot of folks. If you don't have any equity in your properties, there are few good reasons to be in a Chapter 13. If you moved to the trailer and declared that as your personal residence, you could protect up to $70,000 in equity in that property, exempt $3,5000 each in any cars and probably file a no asset Chapter 7 pretty easily. And a lot cheaper.
Answered on Mar 16th, 2012 at 11:05 AM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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There is case law that would support changing your homestead by moving and then claiming what was your second home now to be your primary and exempt home. Be sure to give a full history and discuss the issue and possible risks of trying this approach and filing chapter 7 with the new homestead.
Answered on Mar 16th, 2012 at 12:19 AM
Chapter 7 Bankruptcy Attorney serving Clinton, MS
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Timothy Kevin Byrne Attorney at Law
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Chapter 7 is means tested for income. If your income after certain expense are deducted is over the threshold you will not be able to file a Chapter 7. You will have to file a chapter 13 or pay the debts. It sounds as if you may qualify for a Chapter 7.
Answered on Mar 15th, 2012 at 8:20 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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It is impossible to evaluate your situation without more facts. The important missing information is your ongoing income and expenses. Discuss this with an experienced bankruptcy attorney.
Answered on Mar 15th, 2012 at 8:11 PM
Family Law Attorney serving El Cajon, CA
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Law Offices of Sheryl S. Graf
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There are two sections of the bankruptcy code which typically apply to individuals: Chapter 7 (commonly referred to as a "straight" bankruptcy and Chapter 13 (commonly referred to as a reorganization or repayment plan). In most cases, all of your assets are exempt from being sold to pay your debts. In other words, you get to keep everything but your debts. Student loans are generally not dischargeable, but there are some exceptions. You can claim an exemption for your primary residence, so it may make financial sense for you to move into the trailer (assuming the amount of equity does not exceed the allowable amount AND you can afford to make the monthly payment), and let the house go back to the bank in your bankruptcy proceeding (assuming you are underwater and cannot afford to pay the mortgage).
Answered on Mar 15th, 2012 at 8:10 PM
Trusts & Estates Attorney serving Camarillo, CA
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Law Offices of Larry Webb
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Your question can't be answered without knowing the numbers. Equity, loan balances and fair market values. With two incomes and a military retirement, your income could be an issue. If you do a Ch13, you may be able to keep both properties and get control of your finances. I suggest you seek multiple opinions about what to do.
Answered on Mar 15th, 2012 at 8:10 PM
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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I suggest you talk to a bankruptcy attorney about the details of your situation and to see what Chapter you would qualify for. You are only able to keep one home under bankruptcy and your student loans generally are not dischargeable.
Answered on Mar 15th, 2012 at 8:08 PM
Yes you can do that.
Answered on Mar 15th, 2012 at 8:07 PM