when you file for bankruptcy will they take your assets in payment for your unsecured credit cards?
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If you are filing for bankruptcy will they take away your assets for unsecured credit cards?
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6 Responses to “If you are filing for bankruptcy will they take away your assets for unsecured credit cards?”
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They would have to see what assets you had yes. You want to be very careful doing that, it will really screw up your credit, and a lot of companies won’t touch you after wards.
P.S as the person above me states, they won’t for the unsecured cards, i meant in general
No. That’s why they’re called "unsecured".
creditors can liquidate anything you purchased with those unsecured cards. Exception is if you depend on it to live or work.
When you file your Bankruptcy Your Attorney will have you list all your debt you want to file. Credit cards, old bills, vehicles, even your house. You can keep things though. Like if you wanted to get rid of all your debt but wanted to keep one vehicle and your home. Make sure your filing for Chapter 7 and not Chapter 13 or your end up making payments toward your old debt, defeating the purpose of the bankruptcy all together. There are guidelines on your income to qualify for chapter 7 now. so review the chart with your attorney. When My husband and I filed I temporarily left my job to reduce our income so we could qualify for chapter 7. To each his own, but I didn’t wanna have to pay back 80k in debt if i didn’t have to;)
I filed chap 7 – 8 yrs ago and they didn;t take any of my assets – I owed about 40k total including a repo’d car
Depends on the state you live in. Most states have their bankruptcy exemptions online. In some states, you can choose to take federal exemptions or state exemptions. The exemptions specify what you may keep and what you must surrender.
For instance, I just filed in NY. In NY, you’re allowed to keep $5000 worth of exemptions. But, your only allowed to keep $50 worth of books, $500 in jewelry and $450 in pets, just as an example. Most states are a lot lower then that. For instance, in Florida it looks like there is an unlimited homestead exemption, but, only $1000 exemption for personal items. Anything over that amount would have to be handed over to the trustee and liquidated.