Re: I am considering bankruptcy
Thanks for your posting. You have several different issues, so let me break them down one at a time:
Q. "I have about $120,000 in credit card debt, but I also have about $100,000 in savings. If I buy a house with the money then file for the bankruptcy, would I be able to keep the house without any problem?"
A. Maybe, and likely yes. Houses are exempt, up to a limit, but more importantly the part that is exempt is your EQUITY in the home. The exemptions change on your age, marital status, disability, income, and other factors, but for most people, the exemption is $50 to $75,000, which may not cover your equity.
Q. "Can I keep some of the credit cards that I will not include in the bankruptcy and be able to use in the future?"
A. Generally, yes. The bankrutpcy code allows you to "reaffirm" on a debt, such as a credit card, and most credit card companies would be thrilled if you did so (they get nothing in a bankruptcy in most cases if you do not). However, in my personal experience, some credit unions and other institutions will close your account, not wanting to take on the long term risk of someone who has gone bankrupt. Your mileage may vary here.
Q. "How long after I default on the credit cards, will the credit card company take legal action against me?"
A. This is different for each credit card company, as it depends on their company's individual policy. In GENERAL, however, I've noticed with clients that companies generally send you nasty letters after 30 days, start calling you after 60 days, and then decide to charge off the account or take legal action (depending mainly on the balance owed) after 90 to 180 days.
Best of luck to you, and I hope this helped. If you have any other questions, please feel free to email me directly, and I'll answer whatever I can.
