Legal Question in Bankruptcy in Virginia

Chapter 7

I have 2 quick questions. I owe $150,000 to unsecured creditors, my husband has nothing to do with my debt. My husband is not in Bankruptcy. Our home is worth $450,000 and we owe $150,000. I own my home with my husband as tenants by the entireties. How much equity in the home cane be paid to mu unsecured creditors, if any? And why?

Also, How come my 401(k) is not available to my trustee to pay unsecured creditors?

Asked on 7/03/05, 10:50 am

1 Answer from Attorneys

Daniel Press Chung & Press, P.C.

Re: Chapter 7

If all of your unsecured debt is not joint - owewd by you alone - the equity in your home is not available to unsecured creditors unless it was transferred to entireties after the debt was incurred as a fraudulent transfer. Your 401k is exempt because Congress said so. You should consult with a competent bankruptcy lawyer on these issuues to make sure that your filing is done right. Mistakes could be costly here.

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Answered on 7/04/05, 4:29 am

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