To those that have filed.

iVillage Member
Registered: 10-16-2007
To those that have filed.
5
Sat, 03-21-2009 - 8:16pm
My husbands aunt is thinking of filing for bankruptcy. I told her I would try to find some information about it for her. She does have a house, if she files for bankruptcy, can they touch her house? It is actually a duplex so she gets rental from the tenants.
What is the difference between Chapter 7,11 and 13? Basically it is just credit cards that she would be filing for. Any information would be helpful. Thanks
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iVillage Member
Registered: 08-13-2008
Sat, 03-21-2009 - 9:37pm

I've never filed for bankruptcy so I can't provide a personal experience regarding what it's like.

Carey

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iVillage Member
Registered: 03-25-2003
Sat, 03-21-2009 - 10:59pm

Bankruptcy isn't about the courts taking anything from you but your debt. If your aunt wants to keep her house and can afford it, she'll be able to keep her house. Same with her car. If her only debt is credit card debt and her income is below a certain level she will file chapter 7. If she has secured debts (house/car) OR her income is above a certain level she will file chapter 13.


The difference between 7 and 13 is: with chapter 7 all debt is erased and with chapter 13 it is a re-payment plan which means they take all of your debt, living expenses and figure out a dollar amount your creditors will receive every month for the duration of the bankruptcy.


Chapter 11 is filed by businesses.


The best thing for your aunt to do is to either a) ask around and see if anyone she knows can recommend a good bankruptcy attorney. If she doesn't want to do that, she can always start by looking in the phone book. Always interview more than one attorney and NEVER pay for a consultation.


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Registered: 03-17-2003
Sun, 03-22-2009 - 2:06am
iVillage has a message board with a folder specific to bankruptcy.
iVillage Member
Registered: 03-22-2009
Sun, 03-22-2009 - 9:09am

Hi - I am a bankruptcy attorney in Fort Worth, Texas (I have been in practive for 28 years and i am not seeking to drum up business).


In order to know the answer to whether or not your aunt can keep her house is two-fold. First, where she lives --- some states like Texas and Florida have unlimited homestead exemptions for the home that you live in. Many states have a limit to how much equity you can have in your home. The general federal exemptions also have a limit.


I was concerned that you may be misled that your aunt can simply keep her home - in Texas and Florida she would be able to, but not necessarily in other states so it is important to talk to an experienced bankruptcy attorney. Word of mouth referrals are the best way to find an attorney. Second best is seeing a few - almost all bankruptcy attorneys offer free consultations. The worst is just choosing someone out of the phone book.


Hope this helps,


Elaine

iVillage Member
Registered: 10-16-2007
Sun, 03-22-2009 - 10:25am
Thank you all for your input. I know she is going to call her attorney tomorrow and see if she can help her find a bankruptcy lawyer, and see what she needs to get started.
SHe is such a kind women who is always helping everyone else and not herself, giving people money that she does not have, and that is how she got into this situation. Basically, we told her that she can't be any worse off filing then always paying late on her cc's and always getting collection calls.
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