Help, please. some questions
Question: I have a question. If someone declared bankruptcy (everything you owe on has to be included) even though you continue to make your mortgage payments are you still allowed to basically walk away if circumstances are such that you no longer can make the payments at a later time, like a year later? What do you suppose that does to you? I know bankruptcy is bad for credit for a few years, but does letting your house go do more damage? I guess what I’m getting at is are you allowed to recover and try again in a few years?
Thanks for any info.!
Answer: I think you’re always allowed to recover and nobody’s ever going to stop you from trying to be an economic success. The problem is, somebody may not want to take a risk lending you money. So, the issue is one of financing your future economic success.
I’ve been told that the effects of bankruptcy vary. On one hand, it’s definitely a negative. On the other, somebody that might lend you money in the short run may feel a bit more “secure.” After all, you can’t declare it again for 7 years.
There are, essentially, some things that are exempt when you delcare bankruptcy — meaning there are some assets you get to keep. Tools of a trade, for example, come to mind. If you don’t put everything in that should be put into the pool of assets then the creditors who are in the pool might scream fraud and sham. (I’m no expert on this stuff, so take it with a dash of salt). I’ve heard that a person can keep a home.
On the other hand, if you neglect to include a creditor in the pool you will not be discharged with respect to the debt of that creditor omitted. That means you still owe and the creditor can use any asset you might have, to the extent allowed by the law, to satisfy that debt. You will not be able to come back and say, ‘now I want to include my house’ or ‘I don’t want you to seize and sell the asset that I have that you may discover.’
I’d consult an attorney knowledeable on the subject.
Related Posts
Filed under: Bad Credit Loan
Leave a Comment
XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
TrackBack URL | RSS feed for comments on this post.