Can I keep my car if I file Chapter 7 in California?
If you’re filing under Chapter 13, you’ll be able to keep your car as long as you keep making your payments. Under Chapter 7, whether you keep your car will depend on your ability to make payments and the value of your vehicle. The choice of exemption system will seriously affect your Chapter 7 bankruptcy.
Can I keep my house if I file Chapter 7 in California?
Debtor(s) can keep the house in a Chapter 7 if the equity in the house is not more than the homestead exemption available for the state in which debtor is filing. California has 2 ‘systems’ of bankruptcy exemptions.
What is the income limit for Chapter 7 in California?
If your total monthly income over the course of the next 60 months is less than $7,475 then you pass the means test and you may file a Chapter 7 bankruptcy. If it is over $12,475 then you fail the means test and don’t have the option of filing Chapter 7.
What will I lose in Chapter 7?
After filing for Chapter 7 bankruptcy, all of your property will go into what is known as a bankruptcy estate. You don’t lose everything, however. The Chapter 7 bankruptcy trustee will sell the remaining assets and distribute the sales proceeds to your creditors.
Do you lose your house in a Chapter 7?
Most Chapter 7 bankruptcy filers can keep a home if they’re current on their mortgage payments and they don’t have much equity. However, it’s likely that a debtor will lose the home in a Chapter 7 bankruptcy if there’s significant equity that the trustee can use to pay creditors.
Can I keep 2 cars in Chapter 7?
As long as people are making their payments to the bank, they can usually keep their cars. As long as the cars are of limited value, it is possible to take multiple vehicles through Chapter 7 bankruptcy. However, as a result of paying off the loan, the Debtor creates equity in the car when none existed before.
How much will credit score increase after Chapter 7 falls off?
“It doesn’t increase. After your BK is removed you are grouped with others who haven’t filed BK, so your FICO will go down. The sooner you started rebuilding credit after your discharge, the softer the blow. So for people who are in BK your score is based on other people who are in BK.
Will my credit score go up after 7 years?
Impact on Your Credit Score Even though debts still exist after seven years, having them fall off your credit report can be beneficial to your credit score. Note that only negative information disappears from your credit report after seven years. Open positive accounts will stay on your credit report indefinitely.
How many years of tax returns do I need for Chapter 7?
If you file for Chapter 7 bankruptcy, you must provide to the bankruptcy trustee a copy of your tax return for the most recent tax year for which a return was filed (but plan on providing the two most recent returns).
Will I lose my furniture in Chapter 7?
Most Chapter 7 bankruptcy filers can keep all of their household goods and furniture in bankruptcy. Whether you will be able to will depend on the property your state allows you to exempt, or, if your state allows you to choose between the state and federal exemption systems, the federal exemption amount.
Will I lose my furniture in Chapter 13?
If you are filing for Chapter 13 bankruptcy and don’t want to keep your furniture, you can surrender it. If you want to keep your furniture and bought it at least one year ago, you can pay the creditor the current fair market value of the furniture or the loan balance.
Does Chapter 13 take your tax refund?
If you file for bankruptcy under Chapter 13, you may need to provide your tax refund to the bankruptcy trustee so that they can use it to pay your creditors. A bankruptcy trustee likely will consider a tax refund to be disposable income because it was not included in the calculations of your necessary expenses.
Can you claim Chapter 13 on your taxes?
You Still Have a Right to Claim Those Bankruptcy Tax Deductions. If you’re paying federal or state taxes, spousal support or business debts/expenses through the Chapter 13 bankruptcy this may also be deductible from your current year’s taxes.
Can I pay off Chapter 13 early?
In most Chapter 13 bankruptcy cases, you cannot finish your Chapter 13 plan early unless you pay creditors in full. In fact, it’s more likely that your monthly payment will increase because your creditors are entitled to all of your discretionary income for the duration of your three- to five-year repayment period.