How long do you have before they take your home from you after a chapter 7 bankruptcy?

Answer 1

Chapter 7 might not be for you. A chapter 13 stops foreclosures and repossessions. Filing both of these petitions are releif of active colletions, but which one suits your needs depends on several factors. Chapter 7 discharges repayment of "unsecure" dept such as credit card, medical bills, utility bills, etc. A court appointed trustee determines which properties,if any, must be sold to pay debit. Property that is not sold is called "exempt", which varies depending on area and may include home, car, insurance policies, retirement, etc. Check your state or local consumer protection office to find properties that are exempt in your county. This option is best if you do not expect to have a steady flow of income, if you have a lot of exempt property, and do not have significant assests such as alot of equity in home or car which could be sold to repay debt. Chapter 13 is a repayment plan of a portion of your debt depending on income. The debt is repaid over time, but interest rates are lowered, and balances reduced for example to minimize overall amount you pay each month. You are in bankruptcy until debt is paid in full. This is also ideal if you have alot of "nonexempt" property, such as a car or home that is either paid off or has alot of equity, or if your car is already in repossession and the bank is demanding the remaining balance be paid in full. It is up to the creditor if they will accept payments under chapter 13 once they obtain possession of the vehicle. Their decision will be made on your payment history with them, which if in this position, probably poor. If you think you are in jeopardy of losing property, stay in touch with them. If you can't make a payment on an agreed upon date, call them and they will work with you. If you keep in contact with the bank, you will know when, or if it is time to decide which one of these to file. If finances are spiraling out of control, don't stop answering the phone and opening mail, do the enevitable or it will cost you bigger bucks and more losses!