Afraid to file chapter 7

[Katiekat37]

My husband and I a strongly considering filing for chapter 7 bankruptcy. We have 2 leased vehicles and a mortgage with less then 15k in equity that are all current on payments. We would like to be able to keep both our cars and our mortgage. We have approximately 35k in credit card debt. Our mortgage is through the same credit union as a credit card with 25k in debt on it. What is the likelyhood that we will be able to keep both cars and our mortgage? Any advise would be greatly appreiciated

 

[Taxing Matters]

What is the likelyhood that we will be able to keep both cars and our mortgage? Any advise would be greatly appreiciated

Well, for starters you need to tell us in what state you live since the bankruptcy exemptions vary from state to state. Second, there is the issue of whether you can pass the means test for bankruptcy. If you can't do that then you may have to do a Chapter 13. Also, can you afford to make the house and lease payments if the credit card debt is discharged? Is the credit card debt the only debt you want to dump? Keeping the house and the cars doesn't do you any good if the payments on them are really too big for you based on the income you have, so you need to be realistic about what you can afford. You probably should meet with a bankruptcy attorney to find out how bankruptcy would play out given your particular circumstances and figure out what would be the best option to put you on a better financial footing.

 

[adjusterjack]

What is the likelyhood that we will be able to keep both cars and our mortgage?

You'll have better luck keeping your home but the nice cars likely go bye bye in bankruptcy.

 

[doucar]

Our mortgage is through the same credit union as a credit card with 25k in debt on it.
Credit unions are known for "cross collateralizing" loans and credit card debt. Depending upon the documents you signed, defaulting of the credit card may be considered defaulting on the mortgage and/or the credit card may be considered secured by the mortgage. You really need to run this by an experienced bankruptcy attorney in your state.