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Help!! Lots of questions about filing bankruptcy...

Just wondering, if you owe a lot in medical & other types of bills, & you file bankruptcy, does that erase all your debt or can creditors still garnish wages, or take you to court for what you owe? If not how do they know that you filed bankruptcy? If you own your home outright & don't owe anything on it, can they make you sell it, to pay off your debts? And if you are paying on a car, from a buy here, pay here type place can they force you to give your car up? Also, once you file, I heard it takes 7 yrs for your credit to reset, does that mean you start fresh w/ a zero credit score, that will allow you to rebuild your credit? Sorry about all the questions....

Answer Question
 
HappyEndings

Asked by HappyEndings at 11:07 AM on Apr. 15, 2013 in Money & Work

Level 18 (6,438 Credits)
Answers (9)
  • You should talk to a lawyer that deals with bankruptcies
    Dardenella

    Answer by Dardenella at 11:20 AM on Apr. 15, 2013

  • if you owe a lot in medical & other types of bills, & you file bankruptcy, does that erase all your debt or can creditors still garnish wages, or take you to court for what you owe? They can appeal at the hearing to attempt to collect. If not how do they know that you filed bankruptcy? Your lawyer will notify all parties included in the bankruptcy including credit cards.If you own your home outright & don't owe anything on it, can they make you sell it, to pay off your debts? No.

    2autisticsmom

    Answer by 2autisticsmom at 11:20 AM on Apr. 15, 2013

  • And if you are paying on a car, from a buy here, pay here type place can they force you to give your car up? If you wish to continue paying on it you can. They can repossess it if you intend to stop paying on it.Also, once you file, I heard it takes 7 yrs for your credit to reset, does that mean you start fresh w/ a zero credit score, that will allow you to rebuild your credit? No it takes seven years for it to drop off your credit report. During this time it can be harder to obtain credit. Mine recovered in less than seven years though.
    2autisticsmom

    Answer by 2autisticsmom at 11:21 AM on Apr. 15, 2013

  • Thank you so very much 2autisticsmom!! That helped A LOT! We are just trying to weigh our options right now to decide if this would be the best route to take.
    HappyEndings

    Comment by HappyEndings (original poster) at 11:31 AM on Apr. 15, 2013

  • No problem. Been through it . Not proud of that fact, but I have no regrets. Anything you still want to pay on, do not include it in the bankruptcy. Only debts included will be absolved. Refer all collection calls to your lawyer while you are waiting.
    2autisticsmom

    Answer by 2autisticsmom at 11:45 AM on Apr. 15, 2013

  • If you own your home outright, you can borrow against it. I know that they can take your car for non-payment even if you file bankruptcy. I would call a mortgage lender to see if they can help you, the medical debt may be able to be settled for alot less, say 20% of what you owe. May I ask how much in total debt do you have? You will not be eligible for the kind of bankruptcy that wipes away your debt, you will have to do a payment type of bankruptcy. Most lawyers do a consultation for free, but keep in mind they want you to file, as that is how they get paid.
    If you and your spouse are both employed, it would make more sense to borrow against your home, and make a small monthly payment.
    jerseydiva

    Answer by jerseydiva at 11:57 AM on Apr. 15, 2013

  • Since laws vary from state to state it's best to call your local bar assoc. & get a referral to an attorney who specializes in bankruptcy law. Most consults are free or a very small fee. Ask what they require you to take to that initial appt., but you should at least have a list of all your income, assets & debts so he/she can give you the best advice on what you should do. Best of luck to you.

    mrsmom110

    Answer by mrsmom110 at 12:20 PM on Apr. 15, 2013

  • Depends on if you go with a chapter 7 or a chapter 13. 13- you make payments on it, and 7 you don't
    we did a 13 because we needed to keep both of our cars- they were going to take 1 of them if we did a 7
    charlotsomtimes

    Answer by charlotsomtimes at 12:47 PM on Apr. 15, 2013

  • We were told by the bank that they wouldn't allow us to borrow from our home because of our credit, & the money that we owe... Not really sure the total amount, but it's high enough to where even making a small payment per month along w/ our other bills, food, car payment, & other payments, it would be impossible. My hubby works full time, & I work a few hours a week, but we have 4 kids, so the cost of living is expensive enough w/out any other payments.... it's maddening! Feels like we are on a hamster wheel & getting nowhere!! Thank you all for your comments!! I truly appreciate it!
    HappyEndings

    Comment by HappyEndings (original poster) at 11:56 AM on Apr. 16, 2013

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