I am behind on 2 cars and the house, 3 and 4 month respectfully, will filing bankruptcy save the cars and the house?? If so, which one chapter 13 or 7?

You can probably stop foreclosure on your house and save at least one vehicle. Because you are behind on your payments, it's vital that you act quickly. Filing bankruptcy 13 or 7 is going to hurt credit for several years and be on your credit report for 10 years. A bad credit report is not the end of the world as many suggest. Chapter 7 is the best as it gives you a clean start with no repayment. Get the advice of an attorney, even if it cost a few bucks. Many will give a free consultation. Filing Chapter 7, even with the new "bankruptcy reformation act" is less difficult than the media would suggest.

If you do choose to file bankruptcy, get some after-bankruptcy education. I can give you some good sources for information.

New Beginning,

First of all find a way to listen to Dave Ramsey. He is the guy who got my family turned around financially. DaveRamsey.com or something like that. He wrote "The Total Money Makeover". That book would also be a good start too.

Okay, after having listened to Dave for a number of years I know he has many solutions to the situation you are in.

First: Do not let them reposess the cars. Sell them on your own and get what you can. If they re-po them they will sell them for crap and you will still be responsible for the remaining debt. Sell both and go get a $2000 Honda or something with a good reliability record but with a lot more miles. It is risky but it won't kill your credit.

From what I have heard Dave talk about on the air they will have to serve you papers for the foreclosure notice and then they will be coming for it. In the mean time... now you can be taking some steps to avoid the whole situation.

Pay minimum on your other debts like credit cards and such. Dave has told his listeners to have garage sales and sell. Take another job. I go out on trash nights and find stuff to sell at my garage sales. I clear about $100 per weekend. It also depends on the stuff you are selling.

You should call Dave Ramsey and see what he can do for you. Really. He will map out a plan that will work and you can avoid a lot of headache.

Good luck.

James Mutter

Dave is on Sirius from 9-12 and on the local radio from 2-4pm. Look him up on line and find the closest channel in your area.

The advice on Dave Ramsey is very good, his program has helped a lot of people.

First bankruptcy will not take away your house and car debt, you still have to make enough to pay the payments, if you don't, there is not much need, since you will still end up losing them

On a 7, you would re-affirm the debt of the car and the house, and have credit card and other debts discharged.

On a 13 you work out a payment plan ( on a very tight budget) to pay off your debts , car at actual value, not loan, and full house payment plus unsecured on a percentage on the dollar.

These plans can help depending on what you owe, and what you own.

If you want to consider these go visit a bankruptcy attorney, normally the first visit is free