Legal Question in Bankruptcy in Texas

Chapter 7 on Auto and home

I was laid off several months ago and money is now in short supply. I am making 40k less a year. Our (me/husband) house and car were bought on the higher income. We are now behind on the house and about to be on the car. I'm afraid the house could go into foreclosure soon. Can/should we file Chapter 7 and include the house and car? If so, should we file asap before any repo or foreclosure, or should we wait? We need a ''fresh start''. Please Help!

Asked on 9/10/04, 2:37 pm

2 Answers from Attorneys

Michael Dover Michael A. Dover, PC
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Re: Chapter 7 on Auto and home

Yes, you can file and include the house and car. When you say that you want to include the house and car, do you mean that you want to surrender the assets, or stay the foreclosure to buy time to see if you can catch up?

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9/10/04, 5:20 pm
Andrew Nichols Law Office of Andrew B. Nichols
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Re: Chapter 7 on Auto and home

Short answer -- I would lean towards filing NOW. Since you are employed and currently have no creditors beating down your doors you are in an excellent position. Most people do not realize that bankruptcy law is in some significant ways similar to tax law. A good lawyer can advise you as to the best approach to take full advantage of bankruptcy relief. Read my firm's philosophy.

The key test in terms of your specific situation will be gauging your monthly income and comparing this to your monthly expenses. A required part of any bankruptcy filing under Chapter 7 or 13 is a detailed list of your necessary monthly living expenses. This is an estimate however it should be relatively accurate. This monthly list would include such items as rent, car payments, food, utilities, etc. You would not include any payments of unsecured debts.

Basically, if your monthly expenses when subtracted from your monthly net income leaves you with very little money then Chapter 7 is for you. In most cases, my clients keep their cars and their homes. There are so many issues and strategies involved. Please feel free to call me to discuss your situation in more detail. I think you should meet with me in person (no charge) to talk about the different ways to approach these issues. My phone number is (214) 637-0713

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9/15/04, 9:15 am

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