CHRIS asked:
Wha happens if my wife and I buy a house with 20% down and we file personal bankruptcy for a past failed business. We do plan on keeping up with the house payments. What happens to the house, what would our options be? and I understand I need to talk to a lawyer so save your sarcasm
Thanks for these answers but they do not answer the question.
Wha happens if my wife and I buy a house with 20% down and we file personal bankruptcy for a past failed business. We do plan on keeping up with the house payments. What happens to the house, what would our options be? and I understand I need to talk to a lawyer so save your sarcasm
Thanks for these answers but they do not answer the question.
Tags: Buy A House, Buy House, House Payments
October 15th, 2009 at 12:05 pm
I don’t know much about this sort of thing but I remember my mom filed years ago and she was makeing car payments at the time – to my understanding you just don’t file on what you want to pay on yourself – you don’t have to claim all debt… I’m sure someone else knows more tho…
edit: see I told you I didn’t know much about this… good to know
October 17th, 2009 at 9:06 pm
For most states you can reconfirm your mortgage so you can protect your home. Look at the limit for exempt assets in your state. It will tell you whether 20% is too much to have in equity.
As opposed to answerer #1 you DO have to claim ALL DEBT AND ALL ASSETS or they can charge you with fraud.
October 18th, 2009 at 2:59 pm
filing for bankrupcy is harder now than it was before 2005 when the laws were changed. In the past you were able to declare which debts you wanted to keep and which ones you wanted to file on. In some cases though by choosing to keep the house you may be requested to sell the house and use the proceeds to pay off your debts.
Chapter 7 or Chater 13 would most likely be the best routes to go. Chapter 7 is a full compete discharge of all your debt unless someone shows up and contests the discharge. With Chapter 7 you do not have to include all your debt just want you want to get rid of.
Chapter 13 is mainly for businesses but individuals can declare it as well. With a Chapter 13 you can stop foreclosures on property but you will not be allowed to obtain an additional credit without prior approval from the Trustee handling your case. Also by declaring Chapter 13 you set up an agreement to repay your creditors back within a certain timeframe say 3 yrs. Look over your financial situation and know where you stand financially if you chose to declare either Chapters. Get oriented and get several different consultations from different lawyers so you get a clearer picture as to where you stand.
Good luck…