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    joville's Avatar
    joville Posts: 1, Reputation: 1
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    #1

    Dec 5, 2009, 02:57 PM
    Can Senior citizens keep their home and vehicles when filing bankrupsey
    Would Seniors property (home/vehicle) be exempt from being taken away on any type of court order bankrupsey / small claims, etc.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Dec 5, 2009, 04:25 PM

    It is not age but value. They have to fit within the same exemptions as anyone dles.

    Also bankruptcy is not small claims they are different
    DownUnder's Avatar
    DownUnder Posts: 492, Reputation: 24
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    #3

    Dec 5, 2009, 06:39 PM

    Yes,and you have to pass a means test to see if you qualify for chapter 7 or 13. Which ever bk you take you will be required to take a counseling class before you get your discharge
    I thnk there may be a fee for taking that class as well
    XTC832's Avatar
    XTC832 Posts: 60, Reputation: 6
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    #4

    Dec 8, 2009, 10:00 PM
    Being senior citizens is irrelevant, as age is not the determining factor in a bankruptcy case. I can tell you in the majority of bankruptcy cases, most filers do retain their houses and cars. But it is not always so cut and dry. There are different scenarios involved, depending on whether they own these assets outright or they are still making payments. In a Chapter 13 bankruptcy, the likelihood of retaining their assets is good, since Chapter 13 centers on a payment plan. But in Chapter 7, also called liquidation bankruptcy, the trustee can insist on the sale of a home and/or a car to pay creditors. Federal or state exemptions for homesteads and vehicles can be applied, but it boils down to the after-exemption value. As an example, a car may have a fair market value of $2600. If the Federal exempton of $3225 is applied, then the car would be exempted unquestionably. If a debtor owes $35K and owns a home (free & clear) worth $160K, then it's at the trustee's discretion to sell the home so that creditors may be paid. It's much easier said than done, so please do your due diligence and consult with a good bankruptcy attorney in your area. Take care!

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