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Does EVERYTHING go in a Ch7? Please help.

justmetanyac
Established Member

Does EVERYTHING go in a Ch7? Please help.

I'm currently in over my head in debt due to various different things such as medical bills, frivolous law suit, financial decisions that made things worse instead of helping, etc. We are current on all of our bills but we are going further in debt every month on credit cards to keep from getting behind.  We actually don't want to keep our house and would like to sell but it will not sell for what we owe.  I would love to do ch7 but I don't want to lose all of our possessions besides the house.  We need our cars for our jobs and we have furniture and a grandfather clock that was given to us by my husbands parents.  Does EVERYTHING have to go in a ch7?  We have been struggling for years but now we can't keep up and just need a fresh start.
Message 1 of 5
4 REPLIES 4
whoisjohngalt7
New Contributor

Re: Does EVERYTHING go in a Ch7? Please help.

it is free to talk to a lawyer about your options. there is nothing wrong with examining your options especially in these hard times.

you can always re-affirm the car loans and continue paying those.

one thing to understand is, even after "if" you did file, will your current income be able to sustain your budget, or will it once again put you in the same hole.

the mandatory classes prior and after filing are helpful in establishing budgets to help people struggling truly be debt free after filing.

there is an amount of your possessions you are able to keep, a lawyer would know more about that. but if it boils down to it, material things are just that...you can always re-buy material things once everything gets settled.

times are tough right now, and once can't even get a gallon of gas without using credit cards anymore.

if you do decide to go this path, talk to a lawyer first adn stop using those credit cards now. make sure you get a lawyer who is updated on the new bk law changes in teh past few years.
Message 2 of 5
justmetanyac
Established Member

Re: Does EVERYTHING go in a Ch7? Please help.

Thank you. You're right they are just material possessions, but, I don't think my husband will see it that way.  From everything I've read about BK, I don't think we will be able to do Ch7 anyway.  I think we will have too much income afterwards and would be forced into Ch13.  Our gross is over $75K and our net monthly income is a little over $5200.  Even making this decent income we are going in the hole every month with our current situation (mortgage pymts of $2000+).  BTW, I believe we were victims of a predatory loan.  I wish we had the money to try and peruse this in court.  On another thread it talked about that, if we were lucky, we could end up with a free home.  We refinanced our home almost two years ago and had to do a first and second mortgage to keep from paying PMI, it's a 100% loan and that is pushing it.  We were supposed to refinance for a fixed rate in two years but now our house will not appraise high enough due to the market (it barely appraised high enough before) so we are stuck.  Also, our mortgage has changed hands 3 times since we refinanced!!!!!!  On the credit cards, if we stop using our credit cards we won't be able to make ends meet and will have to get behind on payments.  Of course, I guess if we are going to do Ch7/Ch13, that would be fine but we aren't sure yet.  The credit will eventually run out anyway.  I'm just babbling, but thanks for listening.
Message 3 of 5
grammysue
Established Member

Re: Does EVERYTHING go in a Ch7? Please help.

We filed C7 in Aug, discharged in Dec.  Expected it to be horrible but it wasn't.  Our lawyer instructed us on how to arrive at value of possessions; he (and the court) said to use flea market/garage sale values - which are very, very low.  Also makes a big difference what state you live in.  We were able to keep all our possessions, including antiques, reaffirmed our car and our house, and got rid of lots and lots of cc debt and two recreational vehicles.  We are retired and this means we got a second chance to live.  Make sure to get GOOD attorney.
Message 4 of 5
justmetanyac
Established Member

Re: Does EVERYTHING go in a Ch7? Please help.

Thanks GrammySue.  Great advice on putting a value on property.
Message 5 of 5
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