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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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My husband and I are considering bankruptcy due to my loss

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My husband and I are considering bankruptcy due to my loss of income. We have been getting by on our credit cards and now they are too high to pay. We do not have any or very little equity in our home and want to keep it along with our cars, one is paid for but 10 year old and the other has payments with no equity in it. My question is are we able to file bankruptcy and keep our home and cars and just file to clear out the credit card debt? Our credit card debt is approx $20,000.00 and my husband only makes $44000.00 a year. Please let me know, thanks!
Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.

1) Have you and your husband lived in North Carolina continuously for the past 2 years? If not, where have you lived for the past 2 1/2 years?
2) What is the current market value of your home? (What could your home sell for right now?)
3) What is the balance of the mortgage(s) for your home?
4) What is the Blue Book value of the car that is paid for?
Customer: replied 4 years ago.
Yes we have lived in NC all of our lives, current market value of our home is approx $120,000 and we owe approx $114,000. The blue book value of our paid for truck is approx $4500.

Thank you for your response.

Given the information you provided, you would be able to keep your house and both of your cars if you file a Bankruptcy - as long as you continue to pay the mortgage and the car loan for the car that is not paid for.

The Bankruptcy would discharge your liability to pay all your debts, but you can continue to pay your mortgage and your car loan.

 

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

Thank you.

Customer: replied 4 years ago.

Thanks but the items that I am purchasing on our credit cards will the creditors ask for any of them back, if we file? Example, clothes, shoes, etc?


 

Credit card companies can never get back the items that were purchased with their credit cards - because there is no security agreement involved with credit card purchases.

However, it is important that you not charge more than $600 worth of non-essentials to any one credit card within the 90-day period immediately preceding the filing of your Bankruptcy. The non-essential items could not be taken back, but the debt for those purchases could then be deemed to be non-dischargeable, so that you would have to pay for those purchases in spite of your Bankruptcy.

cfortunato and other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.

one more question please, are there a limit to what your credit cards can be vs. income to file bankruptcy and not have to pay back the creditors?

Thank you for accepting my answer!

There is not limit to the amount of credit card debt that you can have discharged in a Chapter 7 Bankruptcy - regardless of your income.

However, if the gross annual household income is greater than $48,708 for a family of 2 in North Carolina, then it would not be possible to file a Chapter 7 Bankrutpcy.

In summary, since your gross annual income is less than $48,708, you and your husband are eligible to file a Chapter 7 Bankruptcy, and there is no limit to the amount of debt that you can have discharged.