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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2900
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Unfortunately my husband and I are looking into filing bankruptcy.

Resolved Question:

Unfortunately my husband and I are looking into filing bankruptcy. We have too much credit card debt ($70,000) and have barely enough to make the house payment,energy bills, etc. My husband's income has decreased $150,000 in the past year. That said, I've heard of chapters 7 and 11. One of them being able to keep your house and car. We would file that one. We have some shares of private stock that we would like to keep, is that a possibility or does that need to be liquidated too? Thank you very much. Cindy
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 8 years ago.
Hi Cindy

Based on the income, the most likely chapter is chapter 13. With this, you would pay back a portion of the debts, (10-100%) based on your monthly disposable income as calculated over the 6 months before filing. You can keep your home, pay off your vehicle, and discharge the rest of the consumer debts in the consolidation. Chapter 11 is for debtors who have too much debt for chapter 13, mainly used by corporations. Chapter 7 can discharge unsecured debts. This would only be available if you pass the means test (the 6 month budget analysis mentioned above) You have to be close to the median income level for your family size and location to meet this test. If you have equity in the home, or have higher income, then the chapter 7 is not usually the best option. Talk with a local attorney about chapter 13.
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