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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Good Morning, I have recently had a drastic loss of income

Resolved Question:

Good Morning,
I have recently had a drastic loss of income due to being laid off in 2009. I have a combination of credit card bills and personal loans that add up to about $20000. In addition I have a car payment. I currently rent my home in East Greenwich RI. I also own a home in Falmouth MA that my elderly Mom lives in. She gets Social Security, but I pay approx. $700. per month for the property. I am not behind on my mortgage or car payment, but I can't afford my loan and credit card bills, and am behind. Would filing for chapter 13 bankruptcy allow me to pay off my debts without losing my property and car?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.
Hello,

I am the JustAnswer expert that will be helping you today. I am a lawyer with 25 years experience. Although I am not your attorney, I hope that I can give you helpful legal information.

You are correct to consider a chapter 13 bankruptcy. I will explain.


As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.



A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.



A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.


Here are the exemptions for Rhode Island:
http://www.bankruptcyinformation.com/ri_exemp.htm



Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Ellen and other Bankruptcy Law Specialists are ready to help you

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