Legal Question in Bankruptcy in Illinois

Can I file awithout fear of losing my home and my car?

I have a home that is almost paid off and I own my car. Due to a number of circumstances, including a divorce, I have approximately $12,000 in unsecured debt I cannot pay. Can I file Chapter 7 bankruptcy without fear of putting my home or my car in jeapordy?


Asked on 4/16/03, 9:30 am

2 Answers from Attorneys
Lawrence A. Stein Aronberg Goldgehn Davis & Garmisa, LLC

Re: Can I file awithout fear of losing my home and my car?

While it depends on the value of your home, by filing chapter 7 bankruptcy, you will be transferring most of the value in your home to the bankruptcy trustee to use to pay your creditors. Thus, you should review your circumstances with a bankruptcy lawyer before filing chapter 7. There are prbably better options for you such as chapter 13 or an informal workout.

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Answered on 4/16/03, 11:05 am
Thaddeus Hunt Law Offices of Thaddeus Hunt

Re: Can I file awithout fear of losing my home and my car?

I agree with the assessment of Mr. Stein. A Chapter 7 bankruptcy is generally not the way to proceed if you own a home with a large amount equity.

A Chapter 13 would allow you to keep your home. Depending on the delinquency of your unsecured debt, creditors or their collection agencies may be willing to settle for a lesser amount. The only drawback with this approach is that you do not have the protection offered under the bankruptcy code.

Good Luck

Thaddeus J. Hunt, Esq.

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Answered on 4/16/03, 11:46 pm


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