How does filing bankruptcy work? - Bankruptcy Law Questions and Answers- LawQA.com

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How does filing bankruptcy work?

I am 22 years old and I have 10k in credit card debit. I am not married and I have no kids and no house. I only have a car and I've been making payments for over a year and Ive never missed one. If I file bankruptcy I just want to make sure I get to keep my car and that I can start clean again. I know I can't get and credit cards for about 6 to 10 yrs. But I want to make sure that's how bankruptcy works.

Answer By Kevin Bruning
Bruning & Associates, PC
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You can file for bankruptcy, discharge the credit card debt, and keep the car.

Answer Applies to: Illinois
Replied: 1/7/2012

Answer By Stacey Selleck
Selleck Legal, PLLC
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You sound like you may be a candidate for a Chapter 7 bankruptcy which will eliminate your credit card debt. You will be able to reaffirm the debt for your car and keep it as long as you are current on the payments. It will not take 6 to 10 years to get another credit card. You will have credit card applications sent to you shortly after your bankruptcy is discharged. The bankruptcy will remain on your credit report for 10 years though. You just need to start rebuilding your credit as soon as your case is over.

Answer Applies to: Michigan
Replied: 1/5/2012

Answer By C. David Hester
Guardian Law Group PLLC
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You can file and keep your car as long as you don't have more than $2500 in equity in it. Of course you would have to continue to make your payments and reaffirm the car debt.

Answer Applies to: Utah
Replied: 1/5/2012

Answer By J.M. Cook

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You really need to consult with a competent bankruptcy atty. There is a lot of information you need to have before deciding to file bankruptcy. For the most part, you could keep your car if you continued to make payments but if there is equity in excess of your exemptions, a trustee may sell the car to pay creditors. Also, your current income is a factor. So, again, competent counsel is the best way to find out the details of what you need to know.

Answer Applies to: North Carolina
Replied: 1/5/2012

Answer By Phil Boardman
Philip R. Boardman, Attorney at Law
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Yes, you may keep your car when you file bankruptcy. However, you should sit down for a free consultation to discuss all issues more fully.

Answer Applies to: Virginia
Replied: 1/4/2012

Bankruptcy Law office of Bill Rubendall
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When you file bankruptcy you can keep your car if you continue to pay for it and it is claimed exempt. Some lenders require you to sign a written reaffirmation agreement that is approved by the bankruptcy judge.

Answer Applies to: California
Replied: 1/4/2012

Answer By David VanDyke
Bird & VanDyke, Inc.
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You should have a fairly simple bankrutpcy filing. You should not have a problem with your car as long as the equity can be exempted. You should be able to reestablish credit in just a few years rather than 6 to 10 years.

Answer Applies to: California
Replied: 1/4/2012

Answer By Darren Aronow
The Law Office of Darren Aronow, PC
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You will get credit cards in less than a month after your bankruptcy discharge since you can not file a bankruptcy for 8 more years. It will be on your credit report for 10 years, but again your credit will improve quickly. If you have enough exemptions, then you will not lose you car.

Answer Applies to: New York
Replied: 1/4/2012


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That's a very broad question! It would be impossible to answer you with 100% certainty without talking to you, but I can say the following: Bankruptcy is simple in some respects and complicated in others. Papers must be filed with the court (38-60 pages depending on your situation) describing your debts, income, property, past income, among other things. There are a number of obligations the filer must fulfill to get the benefit of a bankruptcy tell the truth; supply documentation about your debts, income, taxes, and vehicle; attend a meeting of the creditors; and take the pre-filing and post-filing counseling courses. Assuming you qualify for Chapter 7 bankruptcy and do al of the above along with any other requirements, you would likely be able to keep your car as long you can afford it, and maintain the payments and the insurance. A chapter 7 would eliminate your credit card and medical bills. It is very possible you can start re-building your credit immediately (especially if you keep the car current) and will be able to have credit cards soon after filing. I do advise my clients to avoid the first credit card offers post-bankruptcy as they are quite expensive; a better plan "for emergencies" is to build up a savings account with 2 to 6 months expenses which you can use for emergencies (without fees or charges). Once you eliminate your credit cards, you should be able to devote some of your resources to building up this fund.

Answer Applies to: Wisconsin
Replied: 1/4/2012

Answer By James Wingfield
Law Offices of James Wingfield
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In Massachusetts, your car cannot be repossessed simply because you have filed for bankruptcy, but only if there is a payment default. As long as you continue to make your monthly payments, the lender cannot take the car away from you. In a Chapter 7 bankruptcy there is a risk of having assets taken by the Trustee on behalf of your bankruptcy estate to pay something to creditors. However, there are exemptions for some personal property, including a specific exemption for an automobile, which will protect a portion of the equity in the vehicle. Since you purchased the car a year ago, there is likely very little value beyond what you owe to the Bank, so it can probably be protected with an exemption.

Answer Applies to: Massachusetts
Replied: 1/4/2012

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