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If you file a Chapter 7 for unsecured credit card debt, can

Customer Question
you exclude rental properties and...
If you file a Chapter 7 for unsecured credit card debt, can you exclude rental properties and house?? Also, assuming credit card companies will work out a pay back plan on the debt???
Submitted: 6 years ago.Category: Bankruptcy Law
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1/6/2011
Bankruptcy Lawyer: Phillips Esq., Attorney-at-Law replied 6 years ago
Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 19,810
Experience: B.A.; M.B.A.; J.D.
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Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.

 

Could you clarify what you meant by "exlcude rental properties and house?"

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Customer reply replied 6 years ago

I own several rental properties (houses and apartments) which have outstanding mortgages. I do not want those as part of the bankruptcy as they are owned with a partner. Is it possible to just restructure the unsecured debt and do a work out plan to pay off the credit card debt??

 

Thanks.

Customer reply replied 6 years ago
Do you need more info
Bankruptcy Lawyer: Phillips Esq., Attorney-at-Law replied 6 years ago

No, I do not need more information.

 

Give me few minutes to review your additional information and get back to you. I was busy assisting another site visitor.

 

Thank you for your patience.

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Customer reply replied 6 years ago

When this charge goes through on the credit card, will it show as a charge by a bankruptcy attorney??? I do not want to alert the credit card company??

 

 

Bankruptcy Lawyer: Phillips Esq., Attorney-at-Law replied 6 years ago

Thank you for the additional information:

 

I own several rental properties (houses and apartments) which have outstanding mortgages. I do not want those as part of the bankruptcy as they are owned with a partner. Is it possible to just restructure the unsecured debt and do a work out plan to pay off the credit card debt??

 

Your Question: If you file a Chapter 7 for unsecured credit card debt, can you exclude rental properties and house?? Also, assuming credit card companies will work out a pay back plan on the debt???

 

Response 1: Chapter 7 is a liquidation Chapter and not a reorganization Chapter. If you file Chapter 7you have to include all your debts and assets. Those assets that are not exempt would be liquidated. Your unsecured debts such as the credit cards debts would be wiped out after you obtain your Bankruptcy Discharge Order. There is no restructuring of payments in Chapter 7. If you want to restructure your payments, you have to use Chapter 13 or Chapter 11.

 

When this charge goes through on the credit card, will it show as a charge by a bankruptcy attorney??? I do not want to alert the credit card company??

 

Response 2: No, it would not. It would just show a payment to JustAnswer.

 



Edited by AttorneyPhillips on 1/6/2011 at 12:53 PM EST
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Customer reply replied 6 years ago

Then, in a Chapter 11 or 13 will the real estate be exempt from the filing???

Customer reply replied 6 years ago

In a Chapter 11 or 13 will the real estate be exempt from the filing or will they take the real estate????

Bankruptcy Lawyer: Phillips Esq., Attorney-at-Law replied 6 years ago

Then, in a Chapter 11 or 13 will the real estate be exempt from the filing???

 

Response: No matter what Chapter that you file under, you must list all your assets. If you want to keep the assets, you must continue to make payments on them.

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Customer reply replied 6 years ago

The mortgages are current and payments are being made on them. They may run 15 days behind on a few but are not past due. The credit cards to this point are current but cannot continue to keep them current.

 

 

Customer reply replied 6 years ago
Will you be answering the above questions. Thanks.
Bankruptcy Lawyer: Phillips Esq., Attorney-at-Law replied 6 years ago

If you are current on your mortgages, then Chapter 7 would be the way to go assuming that you meet the means test. With a Chapter 7, your credit card debts would be wiped out-- there is no payment to make.

 

I am answering your questions as fast as I could... I have to read the questions first.

 

Thank you/

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Customer reply replied 6 years ago

I think I confused you. By telling you the mortgages are current, I am asking if that will

keep them out of the filings of 11 or 13??? Is there any way to restructure credit card debt without them taking the properties????

 

 

Bankruptcy Lawyer: Phillips Esq., Attorney-at-Law replied 6 years ago

I think I confused you. By telling you the mortgages are current, I am asking if that will

keep them out of the filings of 11 or 13???

 

Response 1: No. Whether they are current or not current, the mortgages must be listed on your bankruptcy petition.

 

Is there any way to restructure credit card debt without them taking the properties????

 

Response 2: The only way your properties can ever be taken in a bankruptcy case is if you cannot exempt the property or if you are behind on your mortgages and the lenders foreclose on the properties. Again, when you file for bankruptcy protection, you have to list ALL your debts.

 

Phillips Esq.
Phillips Esq., Attorney-at-Law
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