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BabyLove_8

Guest
What is the name of your state? Pennsylvania
I am contemplating filing for bancruptcy, after the first of the year. I am totally uneducated about the different chapters and what all they include. Of course, I will be hiring a lawyer who is knowledgable about this, but I would like to have an idea about it all, before I walk into his office.
To make a long story short. My husband and I were doing fine, making our cc and loan payments. Unexpected pregnancy (but well worth it!) happens. After baby, I can only return to work p/t. We have 2 older children, besides our newest addition. We have only been making our auto / mortgage payments for the last year. One by one, I had to stop making payments to my other creditors. I must get 15 calls a day, from bill collectors/agencies. (Thank God for caller ID and call intercept) These callers can be very rude, so I just don't deal with it, like alot of people. They have never contacted my husband or I at our places of employment.
My real question is...what chapter can you file, in order to still keep your home and vehicle? We are not late on either of these loans. In fact, the auto loan will be paid off in about 13 months. How much can this cost and about how long does it take, once filed?
Sorry so many questions. I have read through alot of posts on this topic, but I am still unclear about it.
 


Ladynred

Senior Member
As long as you're current on your mortgage and car loan, chances are pretty good you can keep both in either Chapter. The catch in 7 is the amount of equity, but if your state's exemptions are high enough, then you can usually keep that too.

A CH 7 takes an average of 4 months once you get filed, a 13 plan goes for either 3 or 5 years.
 
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BabyLove_8

Guest
Thank You....

Thank you for your replies. I am also wondering...my mortgage is through a government program. Nine years ago, I purchased my home through this program, which was before I was married. At various times in the past, they have subsidized my payment, when I was having a hard time making the current payments, etc. With this being a government loan, so to speak, I could never take a second mortgage, etc. etc. Geez, I don't even think I could have taken an equity loan out on it either. When I tried a few years ago, the bank to which I inquired at, said that noone really likes to deal with programs like that. How do you think this will come into play, when I file?
By the way, Mikey....I looked up those 2 sites you gave me and the one for exemptions isn't available. Or at least I couldn't view it for some reason. (???)
 
V

Vicinep

Guest
Texas- Baby I filed for chapter 11 three years ago, and i kept my car and home, I believe if two vehicles are involved make sure you put down you need both for you and hubby can get to work. Also, make sure you put everything down, even if you pay child care ( the more you put down the better), you might be able to file chapter 7 which you don't pay nothing back, chapter 11 is consolidated debt which you pay a certain amount a month until its all payed off. remember try to make bankruptcy is your last option. Word of advice, if it gets to a point where it's affecting you and your spouse mentally, and you can't find no other way, file for bankruptcy. My sister and brother-in-law tried to handle it and it just got worse, she lost everything plus her spouse, (spouse ended up passing away due to peer pressure)
 

Ladynred

Senior Member
Chapter 11 is for BUSINESSES only, so I guess Vince was referring to 13 ??

As for the 2 cars, Texas law is VERY different in bankruptcies, so saying you can keep them both because you both have to have your cars may not work. The trustee is going to look at VALUES and what is financed, etc.

I can't say how the gov't loan would be affected in a bankruptcy, so you really should make a few appts for free consultations with BK attorneys and find out just what your options are with that.

Here's that link for the PA exemptions, same as Mikey's, I think:

http://www.thebankruptcysite.com/exemptions/pennsylvania.htm

Federal exemptions ARE available in PA, and you'd probably be much better off using the Feds:

http://www.thebankruptcysite.com/exemptions/federal.htm

Federal exemptions for your home are up to 16,500.. so as long as your equity is lower than that, you'll be ok.
 

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