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My husband and I lost both our jobs in October of 2011. My husband found a new job in November of 2011, but it required us to move from TN to IL. We own a home in TN and have been approved to do a short sale. However, we received a notice in the mail today that they are auctioning off our house on April 24, 2012.

We are wondering if our best option is to file Chapter 7 bankruptcy? We have about 10,000 dollars in credit card debt, medical bills, and 2 vechiles. We still owe on the vechiles and would like to keep those as we need them to get to and from work.

My husband makes 50,000/year and I am still unemployed. We have four small children and we are beyond stressed over this. We just don't know what the best thing to do is. Should we file after or before foreclosure? We do not want to keep our house in TN. Also, do we file in the state of TN or IL, since we now live in IL? Will we be able to keep our vechiles in a bankruptcy?

Thank you in advance for answering all my questions.

Have you tried negotiating with your creditors? A $10,000 debt should not take very long to pay off through negotiations and settlements. In case your financial situation doesn't permit you to settle the debts and you decide to file bankruptcy, I recommend filing Chapter 13 and you can exclude the cars from the list. You should consult a bankruptcy attorney before you move ahead with the filing. If you don't want to keep the house, you can file any time you want to, before or after the foreclosure.

Sub: #1 posted on Mon, 04/02/2012 - 02:51

StevenDoyle StevenDoyle

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Please ignore the post by StevenDoyle...he habitually gives out bad advise without properly reading the original post. He missed that you have 4 small children. To him, $50k might seem like a high income when in fact it is not. He obviously doesnt have children and understand the costs involved with having kids.

Make an appointment with a local bankrutpcy attorney for a free consolutation. I am sure you will qualify for chapter 7...he will be able to explain exemptions (if available) for your vehicles.

Sub: #2 posted on Mon, 04/02/2012 - 05:17

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Every US state has its own set of Chapter 7 bankruptcy exemptions. Whether or not you can keep your car depends on Illinois bankruptcy exemptions and also on the value of your car. It would be better to consult with a bankruptcy attorney for the best advice.

Sub: #3 posted on Thu, 04/05/2012 - 01:58

sharon1adkins sharon1adkins

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