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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17223
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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we have two vehicles a home and so much debt. we r working

Resolved Question:

we have two vehicles a home and so much debt. we r working our butts off 2 stay afloat but its near impossible. the bills are not past due. how do you go about bankrupcy how can it save you? can the cars and house be altered for lesser payments or is it just credit card bills
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 4 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

In NY, you can file a chapter 7 or chapter 13 bankruptcy.

WALLSTREETESQ :

A chapter 7 would wipe out all your debts, including any loans you have on the cars and home,

WALLSTREETESQ :

however, if you want to keep the cars and property, you would have to agree to pay them monthly.

WALLSTREETESQ :

All your credit card debts would be wiped out.

WALLSTREETESQ :

In a chapter 13 bankruptcy case, a 60 month payment plan is made for all your unsecured debts such as your credit cards, and the balances on these cards will be lowered by up to 90% in some cases.

WALLSTREETESQ :

However, your mortgage loan and car loans would have to be paid in full as they are secured by the properpties.

WALLSTREETESQ :

properties.

WALLSTREETESQ :

The house mortgage can be lien stripped if their is a second loan, and the entire second is unsecured by equity, which means if the home is valued less the the second the 2nd can be discharged.

WALLSTREETESQ :

For example, if the home is worth $500,000 and the first loan is $600,000 the second loan has no equity in it, so they would lien stripped off the property.

Customer: replied 4 years ago.
but in our situation with nothing behind chapter 7 couldnt work right. or if it was 13 they couldnt help with cars and home
Expert:  WALLSTREETESQ replied 4 years ago.
A chapter 7 would help you wipe out your credit card debts, if you want to keep the car and home, they will not reduce the balances, but allow you to keep the property if you can afford the monthly payments.

A chapter 13 would help if you are behind on the mortgage, as it forces the bank to accept a 60 month payment plan to repay the mortgage arrears.
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