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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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How is credit card debt treated in chapter 13 bankruptcy? Just

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How is credit card debt treated in chapter 13 bankruptcy? Just trying to figure out all of my options. I do not have much assets but I have a car which is worth possibly $2k at the most, my clothing, very little jewelry worth approx $200, furniture worth maybe $600 and a piece of property with no home on it worth approx $13k which I had planned on QC part to my boyfriend for money I owe him & also part to my son. I wish to keep these assets which is why I was considering chapter 13 but how does it work? I do not have a whole lot of income.. I have approx $100 left in the bank each month after I am done with bills if I stay on very tight budget as my ex does not pay me all of the alimony he is supposed to pay. I owe more in card debt that what my assets are. My ex ran up the cards but I am stuck with the debt. From what I read on a website the court would use the value of the land I own & not the other items to figure out what I would have to pay? Is this correct? I am very confused.. Can credit card debt be wiped out completely with ch 13?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
1) What is your total gross monthly household income?
2) How many are in your household?
Customer: replied 5 years ago.
Hi, there is myself & my child in my household. I am the only one working, however. Over the last 6 months I averaged $950 per month before deductions and approx $850 after. My ex is supposed to pay me $1200 alimony every month however he does NOT. He has taken it upon himself to pay only part of what he owes me every month which I will have to take him back to court to get the money he has not paid. Anyway he has been paying me between $600 to $800 a month. More recently $800 per month.
Expert:  cfortunato replied 5 years ago.

Given the information you provided, you can file a Chapter 7 instead of a Chapter 13. A Chapter 7 will be less costly than a Chapter 13.

All of the possessions you mentioned are "exempt" (protected) from the Bankruptcy court, except for the property, for which you can apply a $4,000 exemption. This means the Bankruptcy trustee would be able to sell your property, give you $4,000, and pay the rest to your creditors.

Or you can file a Chapter 13, which will involve paying all your disposable income (gross income minus allowable expenses) to the Bankruptcy court for up to 5 years. If you have $100 left over every month, that would be the amount you would have to pay - in addition to approximately $3,000 to a Bankruptcy attorney.

If you want to keep your property, you would have to file a Chapter 13. Whether you file a Chapter 7 or a Chapter 13, all credit card debt gets discharged at the end.

Customer: replied 5 years ago.
If I were to add my boyfriend on the property how long would I have to wait to file chapter 7 in order for us both to be able to keep the property?
Expert:  cfortunato replied 5 years ago.
You would then to wait 90 days after adding your boyfriend's name to the property deed to file a Bankruptcy.
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