Legal Question in Bankruptcy in Texas

Letting Bankruptcy go

I am in bankruptcy and we are wondering what happens if we quit paying on the bankruptcy and dont continue. We will obviously have our house and car taken. What happens in this situation? We are Chapter 13...


Asked on 4/27/06, 6:17 pm

1 Answer from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

Re: Letting Bankruptcy go

The best approach would be to file a motion to convert the case to chapter 7. Then the rest of your debts (credit cards, etc.) would be eliminated. This is also a good approach because the car loan creditor(and maybe the mortgage) will take the position that after the car is repossessed and sold at auction you are responsible for the difference (the loan amount minus what the creditor sells the car for at auction).

The alternative is to let the case be dismissed which means known of your debts are discharged and all your creditors could pursue you.

Read more
Answered on 4/27/06, 6:45 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Texas