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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 19023
Experience:  B.A.; M.B.A.; J.D.
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If you file a Chapter 7 for unsecured credit card debt, can

Resolved Question:

If you file a Chapter 7 for unsecured credit card debt, can you exclude rental properties and house?? Also, assuming credit card companies will work out a pay back plan on the debt???
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 6 years ago.

Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.

 

Could you clarify what you meant by "exlcude rental properties and house?"

Customer: replied 6 years ago.

I own several rental properties (houses and apartments) which have outstanding mortgages. I do not want those as part of the bankruptcy as they are owned with a partner. Is it possible to just restructure the unsecured debt and do a work out plan to pay off the credit card debt??

 

Thanks.

Customer: replied 6 years ago.
Do you need more info
Expert:  Phillips Esq. replied 6 years ago.

No, I do not need more information.

 

Give me few minutes to review your additional information and get back to you. I was busy assisting another site visitor.

 

Thank you for your patience.

Customer: replied 6 years ago.

When this charge goes through on the credit card, will it show as a charge by a bankruptcy attorney??? I do not want to alert the credit card company??

 

 

Expert:  Phillips Esq. replied 6 years ago.

Thank you for the additional information:

 

I own several rental properties (houses and apartments) which have outstanding mortgages. I do not want those as part of the bankruptcy as they are owned with a partner. Is it possible to just restructure the unsecured debt and do a work out plan to pay off the credit card debt??

 

Your Question: If you file a Chapter 7 for unsecured credit card debt, can you exclude rental properties and house?? Also, assuming credit card companies will work out a pay back plan on the debt???

 

Response 1: Chapter 7 is a liquidation Chapter and not a reorganization Chapter. If you file Chapter 7you have to include all your debts and assets. Those assets that are not exempt would be liquidated. Your unsecured debts such as the credit cards debts would be wiped out after you obtain your Bankruptcy Discharge Order. There is no restructuring of payments in Chapter 7. If you want to restructure your payments, you have to use Chapter 13 or Chapter 11.

 

When this charge goes through on the credit card, will it show as a charge by a bankruptcy attorney??? I do not want to alert the credit card company??

 

Response 2: No, it would not. It would just show a payment to JustAnswer.

 



Edited by AttorneyPhillips on 1/6/2011 at 12:53 PM EST
Customer: replied 6 years ago.

Then, in a Chapter 11 or 13 will the real estate be exempt from the filing???

Customer: replied 6 years ago.

In a Chapter 11 or 13 will the real estate be exempt from the filing or will they take the real estate????

Expert:  Phillips Esq. replied 6 years ago.

Then, in a Chapter 11 or 13 will the real estate be exempt from the filing???

 

Response: No matter what Chapter that you file under, you must list all your assets. If you want to keep the assets, you must continue to make payments on them.

Customer: replied 6 years ago.

The mortgages are current and payments are being made on them. They may run 15 days behind on a few but are not past due. The credit cards to this point are current but cannot continue to keep them current.

 

 

Customer: replied 6 years ago.
Will you be answering the above questions. Thanks.
Expert:  Phillips Esq. replied 6 years ago.

If you are current on your mortgages, then Chapter 7 would be the way to go assuming that you meet the means test. With a Chapter 7, your credit card debts would be wiped out-- there is no payment to make.

 

I am answering your questions as fast as I could... I have to read the questions first.

 

Thank you/

Customer: replied 6 years ago.

I think I confused you. By telling you the mortgages are current, I am asking if that will

keep them out of the filings of 11 or 13??? Is there any way to restructure credit card debt without them taking the properties????

 

 

Expert:  Phillips Esq. replied 6 years ago.

I think I confused you. By telling you the mortgages are current, I am asking if that will

keep them out of the filings of 11 or 13???

 

Response 1: No. Whether they are current or not current, the mortgages must be listed on your bankruptcy petition.

 

Is there any way to restructure credit card debt without them taking the properties????

 

Response 2: The only way your properties can ever be taken in a bankruptcy case is if you cannot exempt the property or if you are behind on your mortgages and the lenders foreclose on the properties. Again, when you file for bankruptcy protection, you have to list ALL your debts.

 

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