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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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can i claim bankrupcy if i owe $20000.00 jn the state of minnesota

Resolved Question:

can i claim bankrupcy if i owe $20000.00 jn the state of minnesota
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
Are you asking about a Chapter 7 or a Chapter 13 Bankruptcy?
If a Chapter 7, what is the size of your household, and what is your gross household monthly income?
Customer: replied 5 years ago.
i dont know the differance between the two, iam by myself my kids are grown and my monthly income is $1200.00 iam a waitress so that changes. I do have a morgage on my home that i owe $35000.00 on so the total would be $55000.00
Expert:  cfortunato replied 5 years ago.

With a Chapter 7 debts can be discharged without having to pay anything. If a debtor makes too much money, that debtor cannot file a Chapter 7, but they might be able to file a Chapter 13, where the debtor has to make payments every month for up to 5 years.

Given the information you provided, you do qualify to file a Chapter 7, as your income is low enough, and there are no limitations on the amount of debt you can have (there is only a limit for a Chapter 13).

 

I think this is what you wanted to know. If not, please let me know.
Thank you!

Customer: replied 5 years ago.
can i still keep my house
Expert:  cfortunato replied 5 years ago.
What is the current market value of your home?
Customer: replied 5 years ago.
$45000.00
Expert:  cfortunato replied 5 years ago.
Since you home has only $10,000 equity (far less than the applicable $360,000 homestead exemption), you will be able to keep your house if you continue to pay the mortgage.
Customer: replied 5 years ago.
so i cant include the morgage in the bankrupcy and is it worth doing this if i owe about $20000.00 not including the morgage
Expert:  cfortunato replied 5 years ago.
Around $20,000 is a typical amount of unsecured debt that debtors have discharged in a Bankruptcy. However, you have to decide if it is worthwhile for you, considering the fact that you will have to pay around $1500 to file, and the fact that if you are only paying the minimums on every month, the interest can add up to be far more than $20,000.
Customer: replied 5 years ago.
so i cant include the morgage in the bankrupcy?
Expert:  cfortunato replied 5 years ago.
You
Expert:  cfortunato replied 5 years ago.
You can include the mortgage, which means your liability to pay the mortgage will be discharged. This just means if you stop paying, the mortgage company cannot get a judgment against you, but if you stop paying, the mortgage company can foreclose.
cfortunato and 5 other Bankruptcy Law Specialists are ready to help you