We are a family of five, renting a home, and very much in debt, so far behind I see no way out, how do we file for bankruptcy? If we do, how does this affect keeping our one car we have (still owe on it)? And our buying a home in the future?


Respectfully,

Emma L.

It will hurt your buying a home, first you won't even get a loan for a bit, then have to pay much higher. Of course just being deep in debt will keep you from buyng one also,

Each state has their own rules as to how much property is exempt, but normally you can reaffirm your car debt normally depending on how much equity you have in it.

I would say go talk to an attorney, ask but most offer the first visit free to explain things. Also now debt counseling is required prior to filing.

You'll want to consult with a bankruptcy attorney. If your payments on the car are up to date and since it's a secured debt, you should be able to reaffirm the debt in a bankruptcy proceeding, whereby you continue making the payments on it as scheduled and keep the car. You may have to wait several years before buying a house or end up paying inordinately high interest rates.