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What choice one should make about bankruptcy chapter7,13 or none?

New York, NY |

I have a credit card debt for about 70K.I don’t have a job right now. No income or little income. No House ,car or cash in the USA, however, I do have an assets overseas which is in the form of Land, apartment which is worth around 100K.My questions are:

1) since my assets are greater than my debts .what are my chances of keeping them if I file for chapter 7?
2) what would happened if I do chapter 13
3) what would they praise my assets for example. I could say they are only worth 15k, who would praise the assets and give them a value,what documentation I need to bring to the trustee to show property?
4) how about if I don’t have access to the property papers. I lost them,what are the steps.
Thank you.

Attorney Answers 4

  1. "I do have an assets overseas which is in the form of Land, apartment which is worth around 100K"

    1) you cannot file Chapter 7 without disclosing this asset and if you do disclose this asset, the Court may, approve its sale.
    2) You need income to file Chapter 13 or you can sell the house in Chapter 13 and repay the creditors, but you cannot pay the creditors less than they would receive in Chapter 7.
    3) I am sure you will tell the truth
    4) you must get the papers or you may not get your bankruptcy case approved.

    Answers are provided for direction only; it is not a substitute for an office consultation.

  2. I know of no wildcard exemption that would allow you to retain your 100K overseas property and let you discharge your $70K of your debt. You need to disclose the asset on your bankruptcy petition or it is a federal crime. If you did a Chapter 13, you would need to pay the creditors what they would otherwise receive in a Chapter 7. If they would be paid 100% in a Chapter 7, then you would need to pay them 100% in a Chapter 13. You cannot lie on the bankruptcy petition and claim that it is worth $15K when it is worth 100K. Again lying would be a federal crime. You would need to obtain the "property" papers which are likely to be requested by the Trustee.

  3. In any bankruptcy, everything you own and everything you owe will be listed in the petition. Failure to disclose assets is a serious criminal offense. What you own stands for what you owe subject to certain exemptions or "things you're allowed to keep".

    You situation will dictate whether a Chapter 7 or a Chapter 13 is appropriate. Contact a bankruptcy attorney.

  4. You have 100K in assets and 70K in liabilities. If you tried to file for bankruptcy under EITHER chapter, you would have to disclose both the assets and their real value, which, by the way, it is a federal crime to lie about.

    The fact that your assets are outside the US means nothing when accounting for your assets. Tell the truth. A bankruptcy judge will not let you slide when you have the capability of paying off the valid debts by leveraging your equity in your overseas assets. And don't think that the creditors won't do their own asset searches to determine either the value of those assets and/or the existence of other assets.

    Own up to your debts.

    This does not constitute legal advice or the engagement of my services as an attorney.

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