Legal Question in Bankruptcy in Minnesota

Bankruptcy

I am contemplating filing bankruptcy because of debt.

My questions are:

1. Will I have to forfeit my home, if my mortgage payments are current?

2. I have two car loans and one signature loan with my previous employer's credit union. If I file bankruptcy will they reposess the cars?

3. Will I lose my checking account?

4. I do not have much outstanding credit card debt but because of a recent marital separation, I can no longer afford the credit union payments. Will my husband have to file also if his name is NOT on the home mortgage or the credit union loans?


Asked on 9/25/01, 7:56 pm

1 Answer from Attorneys
David Kelly-952-544-6356 Kelly Law Office

Re: Bankruptcy

If you keep up the mortgage payments, a Chapter 7 bankruptcy will essentially have no effect. They can only forclose on your home if you don't pay.

It's the same for the cars. To keep the cars you have to make the payments. If you keep up the payments, you get to keep the cars.

You would not ordinarily lose your checking account. An exception would be if you list the bank where the account is as one of the creditors. If you do that, the bank will almost always take what's in the account and close it. A strategy could be, if you have that problem, to open an account somewhere else before you file the bankruptcy.

Credit card debt is the main reason most people file bankruptcy. If you don't have much, then I question how much good it would do you.

Good luck.

This response is for general information purposes only and does not create an attorney-client relationship. You are advised to consult an attorney of your choice concerning the details of your case

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Answered on 11/06/01, 6:43 pm


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