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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2815
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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My wife and I have accumulated a great deal of credit card

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My wife and I have accumulated a great deal of credit card debt due to medical bills and I have lost three jobs in the last two years due to economic factors related to the employer, I am currently unemployed drawing unemployment benefits in the state of Virginia, Our current credit card debt equals app $50,000.00 with more medical debt on the way. Is bankruptcy our best option and can you file and protect your home and cars. 1st and 2nd mortgage on the house. No leins on the cars.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
Each state offers some protection for your assets. To see your state list, google your state and bankruptcy exemptions will come up. If there is no equity in the home, then you will be able to keep it by signing a document called a reaffirmation agreement with both lenders.

For the cars, if they are older, they most likely won't be an issue, as the trustee must get enough on a sale to make an equitable distribution to your creditors. Cars depreciate quickly, so unless they are new, they probably won't be an issue. Check the state exemptions though to be sure.   

Bankruptcy can discharge all the consumer debt -medical, credit cards, loans etc. So it may be a good option. Some lenders will be willing to negotiate, but any discount they offer, may be taxable income to you, so be careful.   There are debt consolidation companies out there, and many help, but you need to stay on top of it, and may need steady income to contribute to such plans, assuming all the creditors are willing to go this route. This hits your credit too, showing that you are paying them on a different schedule.

You should meet with a local bankruptcy attorney. They can help assure you that the assets will be protected, and help give you an idea if the bankruptcy would be your best option.
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