Can I keep my car when filing Chapter 7?

Can I keep my car when filing Chapter 7?

If you file for Chapter 7 bankruptcy and local bankruptcy laws allow you to exempt all of the equity you have in your car, you can keep the vehicle—as long as you’re current on your loan payments. If you have less equity than the exemption limit, the car is protected.

What can I spend money on before filing Chapter 7?

In general, you can engage in a certain amount of exemption planning before filing your case, but it must be reasonable and in good faith. For example, if you have too much cash in your bank account, you can typically spend it on food, rent, gas, car maintenance, or other necessities before filing for bankruptcy.

Can I keep my tax refund after filing Chapter 7?

A tax refund is an asset in both Chapter 7 and Chapter 13 bankruptcy. It doesn’t matter whether you’ve already received the return or expect to receive it later in the year. As with all assets, when you file for bankruptcy, you can keep your return if you can protect it with a bankruptcy exemption.

What will they take in Chapter 7?

A Chapter 7 bankruptcy will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start.

Is it worth filing Chapter 7?

It doesn’t make much sense to file for Chapter 7 bankruptcy if your primary goal is to eliminate these nondischargeable debts. The main nondischargeable debts are: back child support and alimony obligations. student loans, unless repayment would cause you undue hardship.

Can you be denied a Chapter 7?

The rejection or denial of a Chapter 7 bankruptcy case is very unusual, but there are reasons why a Chapter 7 case can be denied. Many denials are due to a lack of attention to detail on the part of the attorney, errors made on petitions or fraud itself.

How soon after chapter 7 can I buy a house?

If you’ve gone through a Chapter 7 bankruptcy, you need to wait at least 4 years after a court discharges or dismisses your bankruptcy to qualify for a conventional loan. Government-backed mortgage loans are a bit more lenient. You need to wait 3 years after your bankruptcy’s dismissal or discharge to get a USDA loan..

Is it best to file Chapter 7 or 13?

In many cases, Chapter 7 bankruptcy is a better fit than Chapter 13 bankruptcy. For instance, Chapter 7 is quicker, many filers can keep all or most of their property, and filers don’t pay creditors through a three- to five-year Chapter 13 repayment plan.

Can I keep credit cards in Chapter 7?

No matter how important the card might be, excluding debt is not an option when you file for Chapter 7 bankruptcy. Bankruptcy law requires you to list all of your debt on your bankruptcy petition, without exception. Even if you don’t owe a balance on your credit card, you must still list it in your bankruptcy papers.