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Can someone explain what Chapter 7 is and what does it include?

Henrico, VA |

Someone keeps telling me to to file Chapter 7 on my car because it is repossessed. I want to try all I can to keep my car. People on Avvo have told me to file Chapter 13. I thought if I file Chapter 7, I will not be able to keep my automobile. Which one is safer for me to file? I am unemployed, with no income and waiting to hear back from a company so I will know my orientation and start date. The person I've spoken with told me to call at 12 PM on Monday. It's a weekly paying job, so I should be find with my payments after. I do want to erase my credit card bill, T-mobile bill, and any hospital bills that are still left, but I want to save and keep my car from being sold at a auction. Is Chapter 7 better for me to file since, I am currently unemployed with no income right now?

Attorney Answers 5

Posted

If you want to save your car, you need to file a chapter 13. However, in order to file a chapter 13, you need a reliable source of income. If you cannot afford the car, it may be best for you to file a chapter 7, dicharge your credit card debts, hospital debts, and any debts arising from the repossession (difference between sale price and amount owed). Then when you get a job making steady income, you can purchase a vehicle better suited to your price range.

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5 lawyers agree

Posted

It is impossible to know what is better for you based on the few facts you have chosen to disclose. One thing that is crystal clear is this: this public forum will not meet your needs. Before you make any further financial decisions, and before more options disappear, consult with an experienced bankruptcy practitioner in your area. It may be that you don't actually need a bankruptcy, or that both Chapter 7 and Chapter 13 have unacceptable costs or consequences.

Best wishes for an outcome you can accept, and please remember to designate a best answer.

This answer is offered as a public service for general information only and may not be relied upon as legal advice.

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2 lawyers agree

Posted

I think this is the third question you've posted here on this problem. On the first one I gave you the name of a lawyer in your area. What's keeping you from seeing a lawyer who can look at your complete situation and give you personal advice?

There MIGHT be reasons why Chapter 7 would be a way to save your car. It would stop it from being sold without permission form the court--and that might be enough time to come up with a solution.

But that just goes to show why you need to see a lawyer and lay out your whole situation, rather than take these shots in the dark.

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7 lawyers agree

Posted

Bankruptcy may or may not be the best option for you at this point. It is tough to get into the specifics over the computer, even a good marketing and informational site like AVVO. Here's the deal, your best bet is to set up an office consultation with an experienced bankruptcy attorney ASAP before your options are limited. Here's a general summary to read while waiting for your appointment: BLUE LINK BELOW

Law Offices of Andrew D. Myers, North Andover, MA & Derry, NH provide answers for informational purposes only. Actual legal advice can only be given by an attorney licensed in your jurisdiction, thoroughly familiar with the area of the law in which your concern lies. This creates no attorney-client relationship.

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Posted

I agree with Mr. Weed. There are plenty of bankruptcy lawyers who will meet with you in person and give you good advice for free. Take advantage of it. Reading over the internet is one thing. Getting sound advice is another.

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