In Oklahoma if you file Chapter 7 bancruptcy do you get to write off all of your unsecured & credit card debt? How does it work; I lost my job and cannot make those payments the only thing i can pay is my house payment; any help would be appreciated i know every state is different; thanks
Lets say I have 15k in equity in my house what does the judge do with that; do they put a lien on it; how does all of that work
Maybe. Depending on your individual state laws, anything you have charged in the previous 6 months before filing is usually not valid to be written off. People have been known to charge up a bunch of debt & then file trying to get rid of it. Laws have changed also, you may be forced into a credit counseling program and end up paying a percentage of your debt, after all. Definately speak to an attorney
Yes, your unsecured debt will be written off (credit card debt is considered unsecured), however your home may be in jeopardy if you have equity in it. Most states offer some amount of exemption but it’s never the full value of your home. This is something you need to discuss with your attorney.
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Laws vary from state to state. For example, in my state, If there is no equity in your house (today’s value less costs of sale less payoff balances on all liens and mortgages), the trustee in a Chapter 7 bankruptcy will abandon the house to you. That is, you keep it, as long as you keep the mortgages current. If there is less than $5,000 in equity in your house, you can claim a "homestead exemption" and keep the house, as long as you pay the mortgages. If there is more than $5,000 in equity, it is possible you could lose your home.
However, your state may have more liberal laws. It usually costs nothing for a consult with an attorney regarding filing bankruptcy and he or she should be able to reliably answer your questions about your home.