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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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I have a question i live in sandusky ohio and we are two months

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I have a question i live in sandusky ohio and we are two months late on our mortgage. Our house has been on the market close to six months if not sold wich im sure wont happen we will be walking away from home and let it foreclose. I dont have any assets except on car wich we owe 16,000 and another one that we one thousand on it.My question is will fith third bank want to take my car that i only one thousand on away from us. Should i pay that off now and put under someone elses name? Or because i still owe some money on it will they not come after it. I should my mortgage and car loan are with the same bank. After my foreclouse goes throgh will the bank try to come after me and for long of a period can they do that. How many years after that can i say that im off the hook? Could they sue me for the remaining balance? Am i better off filing backrupcy? i do owe about 10,000 but i preffer not to file bacrupcy.what should i do?
Bankruptcy can discharge the mortgage that you want to surrender along with any unsecured debts like credit cards, medical, etc.
You can chose to keep the cars and keep paying on them. The court will not go after any vehicle unless there is a lot of equity in them. Since you owe $16k on them, there won't be much, unless it is a luxury. The car with just a $1000 balance could be an issue.
Ohio has vehicle exemptions to protect equity when you file. Ohio has a $1000 motor vehicle exemption and a $400 wild card exemption. So, look up the values, if there is remaining equity after subtracting the loan balance and exemption, then they could be sold in bankruptcy to pay your unsecured creditors.
The home can be surrendered in full satisfaction of the debt, discharging that in chapter 7 as well. Consult with a local bankruptcy attorney for a free consultation to review available exemptions with you to see if a chapter 7 will help you out. Best of luck.
Customer: replied 6 years ago.
now what happens if i dont want to file backcruptcy? can i just walk away and keep paying on the high priced car?
If you walk away, the lender will be able to come after your for the deficiency balance. If they chose to write off the balance, then you will be taxed on that amount if you do not file bankruptcy first. You can negotiate a deed in lieu of foreclosure, or a consent foreclosure too, but talk to your tax expert and the lender to see how that will affect you and if they are available.
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