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Can I keep my home and car without them being taken by creditors?

Asked over 2 years ago - Atlanta, GA

I am unemployed with no visible income. My family makes my house payment and living expenses, my car is paid for and worth $8,000. Will the court allow me to reaffirm my house without visible means of income to make the payment? Will creditors be able to take my car to satisfy debt? Will I be ordsered to sell mny car to satisfy debt

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Attorney answers (2)

Glen Edward Ashman

Reputation Level 16

Answered over 2 years ago. Chapter 7 Bankruptcy Attorney in Atlanta, GA.

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I practice bankruptcy law in Georgia but cannot answer your question without a lot more information. A court might approve reaffirmations based on help from the family, but that is not a certainity. A paid for vehicle with $8000 equity might be a problem to keep, depending on the value of your other assets. I'd really need more details. Call me if you'd like to discuss it.

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A. Keith Logue

Reputation Level 8

Answered over 2 years ago. Bankruptcy Attorney in Marietta, GA.

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As far as car goes, you get a $3500 exemption for an automobile in GA. Trustee may want to sell your car and apply proceeds to pay unsecured creditors. But only if car is worth it. It may not be worth $8000.

Regarding home, depends on whether or not there is any equity. You get $10,000 exemption for yourself and if husband on deed, he gets $10,000. So, by way of example, if home is worth $150,000, and has a mortgage of $120,000, if the trustee could sell for $150,000, he would have to pay about $9,000 commission (6%), then pay mortgage of $120,000, then give you (and husband, if on title) $20,000, so trustee gets $1000. This amount would not cover his administrative costs of selling property, so Trustee would not take home. Just remember that trustee must pay-off any mortgages, liens, etc., pay real estate commission, pay your exemption and then have money left over to justify sale.

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