Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
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If you and/or your wife file a Bankruptcy, she would be able to keep the trailer because it is worth less than $60,000.
Additionally, each Bankruptcy filer is allowed to keep one motor vehicle with a value of up to $5,000. This means your wife would be able to keep her car, but you may have to agree to pay around $1,000 (over 6 - 12 months) to keep your truck, as this is what would be left over after deducting the cost to sell it and after deducting your $5,000 exemption.
1) Q: Is this a Chapter 7 or a Chapter 13?
A: This would apply to a Chapter 7 or a Chapter 13. If you file a Chapter 7, all your debts would be discharged without having to pay anything - except perhaps $1,000 for the truck. If you file a Chapter 13, you would have to pay all disposable income each month to the Bankrutpcy court for 3 years. So it makes more sense to file a Chapter 7.
2) Q: What about the other debts (medical, credit card, etc.)?
A: All of these would be discharged in your Bankruptcy.
3) Q: How would divorce affect this?
A: Divorce will not have an affect on your Bankruptcy filing, and your Bankruptcy will not have any affect on your divorce.