Chapter 7 or 13

Hi Pat -

First, don't ever feel badly about asking us for info- we're always glad to help.

Whether you can file Chapter 7 or Chapter 13 will depend on what the "means test" shows. A bankruptcy attorney will need to look over your income vs. your debts, and that's what will determine if you have the means to pay back at least a portion of your debts - if you do, then you will be placed in a Chapter 13. If you do not have the means of paying back your debts, as determined by the means test, then you will be allowed to file a Chapter 7.

HOWEVER....

Please be aware that filing a Chapter 7 may not save your home, depending on what your state allows for exemptions.

As far as buying a vehicle goes, all of that will be considered when (and if) you file for bankruptcy. Purchasing a new vehicle which requires you to take out a loan just prior to filing for bankruptcy might not be a good idea - the attorney and trustee are going to question why you took out a loan for a vehicle just prior to filing. However, debts incurred within a short time frame prior to filing are generally not allowed to be included in a bankruptcy anyway...so that's something you'll want to discuss with an attorney - before you buy the vehicle. Ask them what impact this will have on your case if you do file.

If you are seriously considering bankruptcy, I would say you need to contact a qualified bankruptcy attorney immediately and sit down with them to discuss your options. Most of them offer a free initial consultation.

We really need a new vehicle. As it is my daughter has been driving with just a lap belt because I can't fit her booster seat in.

Timing has been horrible with this lawsuit. My husband just got permanent position at his job May 11 and I received the letter May 16. We already had plans for another vehicle way before the lawsuit ever appeared.

The car loan would be under my husband's name. So I think it won't impact MY bankruptcy, if I decide to.

Hi Pat, Suebee has given you some really good information. I would definitely say contact a bankruptcy attorney. They will take your whole situation in account and be able to make the best recommendation for you.

Pat - I see, I didn't understand the whole situation. I thought you and your husband were going to file BK jointly, not just one of you.

I would still recommend you contact a BK attorney right away to find out what your options are, and make sure you discuss these things with him/her. Best of luck to you, and keep us posted! :D

When I filed my chapter 7, it didnt affect anything as far as my husband. The house is in his name and so were the rest of the bills. I only filed what was solely in my name and it worked out for us. I didnt have to put anything about his income either..

I filed solely in my name. All of the debts were only in my name. They did need information about my wifes income just to determine what our total household income was and what were the total fixed bills (mortgage, car payment, utilities, etc.). I did not qualify for ch. 7, so I filed ch. 13. We were able to reaffirm our vehicle and house payments which were in both of our names.

I too would encourage you to seek the advise of a bankruptcy attorney. It's not as scary as you would think, and it can give you hope that it will get better. Be careful about making any large purchases prior to filing. It could jeopardize your case.

Good luck.

I agree with the advice you have been given--and would suggest that you IM Texaslawyer, who is an attorney in Texas and is on the boards. I feel he would be the best person to help you here.

First of all, thanks to everyone who has been posting and answering my questions. I feel I will go to the attorney with a lot of good information. I will at least have an idea of what he will talk to me about.

I was letting my husband look into lease or buy a vehicle 1. because we need it 2. if I have to pay anything back affter filing bankruptcy it would be included as an expense.
I don't work. I do not provide any income to our family. So when I file for bankruptcy, they won't include my husband's income nor my son's SSI check? Right?
Am I a good candidate of having this debt wiped out and not having to pay anything?

my future husband may be filing chapter 13 .why can't we put our lease vehicle in the contract so we can keep it? hanks angel

Seems to me you could. That's one of your expenses.