Legal Question in Bankruptcy in Pennsylvania

Re: What do I stand to lose?

From the facts given, you would not lose the house nor the vehicles. But a further analysis would be needed to give a definitive anaylsis.

Re: What do I stand to lose?

As you may know, there are generally two types of bankruptcies for consumers, Chapter 7 and 13. The former is generally for those who simply require the elimination of unsecured debt such as credit cards. The latter is generally for those who have fallen behind in secured debt such as a mortgage. Chapter 13 allows you to repay any arrears over five years.

A bankruptcy protects just about all consumer assets. There is a $16,000.00 minimum homestead exemption in your principal residence per person. The contents of your home, if any one item is not worth a great deal, are exempt up to at least $8,000.00. There are many other exemptions, as well. Vehicles are exempt to a minimum amount of $2,400.00 and, if you do not own real estate, there is what is commonly known as the "wildcard" exemption. You may use up to one-half of the homestead exemption for any asset you want to protect.

An exemption is a dollar amount assigned to an asset so that, if a Trustee ( the person charged with liquidating assets) were to attempt to sell such an asset, he would have to pay the exemption amount to you. Since the stated exemptions usually cover the value of the assets, most consumer cases are determined to be "no asset". Thus, you simply obtain a discharge of your debt.

Based upon your description of your assets, I think it is safe to state that your assets will be protected. Therefore, assuming you otherwise qualify, you should consider filing. You should speak with experienced bankruptcy counsel to discuss all the ramifications.

I trust this has been helpful, but feel free to call or e-mail with further questions.

Re: What do I stand to lose?

As a general proposition there is no reason for someone to lose their home or their vehicles. You may have to pay part or all of the $25000 back to your creditors depending upon your income and any equity in your property. Since your real estate is worth less than you owe you have no equity in your home although you could have other assets that you did not discuss in your question that will have to be taken into consideration.

Your 1992 vehicle will likely be exempt. As long as you continue to make payments on the SUV there should no reason to lose that either.

Finally, all debts that must be paid back including any unsecured debt that you must repay and any arrears on your mortgage, etc will be consolidated and can be spread over 3-5 years and paid through the bankruptcy court.