Re: Whether or not I should file bankruptcy

I believe you will be best served by filing for bankruptcy relief. I'm not sure if you reside in Texas or Utah. Which state you reside in will determine what assets you are allowed to "exempt" (hold back from creditors). Much will depend on whether or not you have equity in your cars. Many people are upside down in terms of their car loans since they owe more on the cars than they are worth. This is important because state exemption laws are different in Utah and Texas. There are limits on how much equity you can exempt but if you have no equity then your actually in a better situation in terms of bankruptcy. I hope this is not confusing. It's sometimes difficult to explain these concepts effective in a brief email format. No matter what you decide to do you will need to reaffirm the debts on the cars which means you will continue to be held responsible for the monthly payments most likely under the exact terms of your current car loans. Please feel free to call me personally to discuss your particular situation in more detail. ph. (800) 303-0720

Re: Whether or not I should file bankruptcy

In a way, yes. When you file bankruptcy, whether Chap 13 or Chap 7 you must list all of your assest and all of your creditors. some of your assets are exempt. Your vehicles for example, one per driver, up to $30,000 equity each. After you file you reaffirm the debt on the vehicles and keep making the payments. The foregoing is an oversimplification but I believe answers your question. Larry Maun 713.266.2560

Re: Whether or not I should file bankruptcy

There are two classes of consumer bankruptcy - Chapter 7 and Chapter 13. It may be possible, depending on your debt and income to keep your vehicles under either chapter. You can keep them under Chapter 13 if your income provide sufficient to meet those obligations, your living expenses and some percent for the unsecured creditors.

Re: Whether or not I should file bankruptcy

One thing to remember is that exemption laws are different from state to state. The attorney from Texas, I am sure, correctly stated the exemption law for that state. Utah, however, is much more restrictive, and you can only have one vehicle, with equity of $1500, and you can only keep the vehicle if you use it for more than just to work and back. For instance, a lawyer will use his car to go to work, to the courts, to the law library, and also to meet with clients or other attorneys. However, what the other Utah attorney said was true also... while you do have to list every debt on your bankruptcy, whether chapter 7 or 13, you can also reaffirm any debt you have listed. By "reaffirm", what I mean is that, despite the bankruptcy, you agree to remain liable on the debt and to continue to make payments.