I've gotten to the point I can't keep up with unsecured credit cards and loans. I have been making on time payments on 2 cars and home. I have zero equity in home and both cars are leases. My debt is 45,000 now that interest and late fees are accumulating. I tried payment plans, etc. but can't keep up. I would only have $200 to pay towards the debt (chapter 13). Should I just file CHapter 7? If I have no money in the bank and no equity in the home or cars what do I stand to loose in Chapter 7? I don't own anything of value like jewelry, antiques, etc. Do they take your furniture, electronics, etc.??Please help with advise. Thanks,
You should check with a reputable BK lawyer in your area. I was in a similar situation, but no house and I just listed anything I had of value and nothing was worth their time to sell...but this can vary depending on your court... so I'd check with a lawyer soon.
No, they don't take your electronics, etc. Based on your debt amount you sound like a Chapter 7 candidate. No sense in doing a Chapter 13 to hold onto cars and a home that have no value to you. If the leases are up to date and you want to keep the cars, mention that to the BK lawyer. Your continued payments would help re-establish your credit status. Another way might be just to let the cars go as welll if you have backup transportation n place.
