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wakeupcall13 · Oct 11, 2009, 04:19 PM

Would anyone in mind sharing their personal Chapter 7 bankruptcy story with me. I am about to file and really would like to know what to expect. I am filing with my husband then we are getting a divorce. If you don't want to post it, please email me privately. There is so much information and I can't find the same answer twice. I am worried about losing my house and car because I may be over the exempt amounts by a little. Any advice and personal stories of survival would be greatly appreciated.

feeling helples · Oct 11, 2009, 04:40 PM

I am in the process of filing chap 13 and am separated from my husband. I am keeping the house, car. Both of our wages will be garnished for the above and the amount that we have to repay back to our creditors. Your husband will have to pay for your home as long as his name is still on it.

wakeupcall13 · Oct 12, 2009, 01:51 PM

Originally Posted by feeling helples

I am in the process of filing chap 13 and am separated from my husband. I am keeping the house, car. Both of our wages will be garnished for the above and the amount that we have to repay back to our creditors. Your husband will have to pay for your home as long as his name is still on it.

Thank you for sharing with me, I thought we would be a 13 also but the attorney says we would just make chapter 7. I personally think I have too much equity in the house and car, just over the exempt amount. I wonder what they do then? I am really looking for stories of the aftermath too. Is it that bad? Do creditors still harass you? I hate even doing it but I can't see a better or safer way out of the mess of a marriage and finances I have. A fresh start is what the lawyer calls it, I hope that is true. I can't shake this feeling that it will start as a Chapter 7 and turn into a 13 and then have to pay both fees. I'm very nervous and of course taking it all on myself because the soon to be ex has his head in the sand.

Catsmine · Oct 12, 2009, 03:46 PM

wakeupcall13, I have asked the Moderators of this forum to move this question to the Bankruptcy law area. I think you will find more and better answers there.

wakeupcall13 · Oct 12, 2009, 04:50 PM

Yeah, I am beginning to think so too.

Thanks for your help

Fr_Chuck · Oct 12, 2009, 05:00 PM

Moved to the legal section >>>>>

Several issues, first there is not one amount for car and home, there is a separate exemption for each, and that exemption is set by state law in the state you are at.

Your attorney will work with you to try and show your value under that.
With cars they look at what the current selling price is for a similar car of the same value, this is done though several sourses, NADA or Blue book values, or by showing though advertisements what the value is.
It is not what you owe on it.

On the property, it just depends on how much you owe to how much it is currently worth. Now since at least in most of the US, homes have lost 1/3 to 1/4 of their value in the last two years, you may have less equity in it.

One thing to watch, if the court orders husband to pay for house, and he does not, they will come after you for the money.

If you are over the equity amount, then you may have include that property to be sold to file bankruptcy.
The reason is, if you have 400,000 in home value, and owe 500,000 they will expect you to sell the house to pay your debts.

wakeupcall13 · Oct 12, 2009, 05:24 PM

I don't have enough equity to pay my bills or even make a substantial dent, it a few thousand over the exempt amount for Ohio. I don't know what value they will use or if they will actually look at the house?
My car is in the same boat, it's a honda and the resale value is set higher and it looks like I'm a few thousand ahead on it too. If I can keep it, that car will last me a very long time and will be paid off next summer... would really help the "fresh start" but its just over the "exempt" amounts I think.
My hope is to get through the bankruptcy, finish the remodeling, sell it and get the divorce.

Fr_Chuck · Oct 12, 2009, 05:31 PM

just work with your attorney, they are often creative on estimating the value but at the end of the day, if they are over the exemption, then they have to be included.

wakeupcall13 · Oct 13, 2009, 01:32 PM

Yes, I will work with the attorney and I am pretty sure this is the road I have to take because of the state of my abusive marriage. I can't trust him so I have to put my future in a strangers hands and hope for the best I guess.
I hear the aftermath of bankruptcy is real bad and I hear its not so bad... so I was hoping for some personal stories, some direct experience but I guess its such a touchy subject...
Thanks for your time fr chuck and thank you fellin helpless for your story.