There is often some confusion with cosigned vehicles and a bankruptcy filing.One questioner asked me : "my ex if filing for bankruptcy and he is the co signer on my car and he wants to add that in to the bankruptcy. will they repo my car or how can i protect myself from getting my car taken if he adds it?????" Answer: If you are current and maintain the payments and insurance, you should be fine and can keep the vehicle when a cosigner surrenders their interest in the vehicle.In other...
reaffirmations & rescissions in Chapter 7 bankruptcy
Question: During my BK, I reaffirmed an auto loan. However, I was told by my lawyer that I could change my mind and surrender the vehicle as long as it was done before the discharge took place. My question is, I filed the paperwork to surrender the vehicle with the court and my Lawyer before the discharge took place. The vehicle was picked up by the bank over two months ago. Is it legal for them (USAA) to continue to report my loan as 30/60/90 days late on payment when I have surrendered...
Bankruptcy Exemptions for retirement accounts in IL, reaffirming car lease and home
| Subject: | assets in bk |
| Question: | are both 401K's and IRA's exempt from chpt 7 in IL? Also, while credit is still in good standing can I lease a new vehicle getting a good interest rate and not have to list them a debtor? What happens to my house if it has no equity but I continue making the payments on time. |
Reaffirming a mortgage
A popular question I get is regarding being on the hook for a mortgage after bankruptcy.Here is a recent question I received:Question: I filed Chapter 7 Bankruptcy last year and managed to hold on to my home. I checked a box in the bankruptcy paperwork stating that I wanted to hold on to my residency. I am falling behind on my payments and want this debt to be included on my bankruptcy. Is this a reaffirmation agreement by the Court. Or is there more to it?Answer:A reaffirmation is a...
Must I list all of my debts in bankruptcy?
Recently, I received an email asking about filing a chapter 7 bankruptcy The writer asks:
"Do I choose which debts I want to include in my bankruptcy or does the trustee do this? I have a bank loan for my truck which I pay on time and I want to keep my truck and keep making payments. Do I have to include this loan in my paperwork for a bankruptcy? What happens if I don't include it?"Answer: All debts must be listed in the bankruptcy petition. You can select to 'reaffirm' certain debts. ...