Re: What happens to your house in BK in TX?

Posted by V in SATX (66.136.44.156) on April 12, 2003 at 00:56:44:

In Reply to: What happens to your house in BK in TX? posted by Fireman on April 11, 2003 at 22:46:28:

I'm back!! When you file bk and you have a house, car, boat, tools, that is used for collateral (secured) for the loan balance you reaffirm meaning that you are signing a statement that you will continue with your payments. Your original loan documents that you signed when the loan was made will stand.

An example is your house and your car loan--you will still pay the balance of the payments for the quoted time frame--once you make your last payment the title deed etc are yours.

Your uncollateral type debts--unsecured--credit cards, visa, discover, jcpennys, exxon etc. where you were granted a credit limit are dismissed.

The only type of debt that cannot be dismissed is if you owe the IRS, child suport and student loans.

Your 401k, annuities, IRA's--retirement benefits that you may have cannot be taken either. They are all protected because of the tax penalties that would be incurred.

The only way that something that would be liquidated--repossesed or foreclosed on after you have reaffirmed is if you just didn't pay. The same rules apply as if you did not file bk.

They don't take your household belongings they don't take your jewelry or tv's. You have exemptions--those items are exempted.

When you file your atty wlll ask you to bring all of your debts--secured and unsecured. Copy of your homeowners insurance (to make sure all of that is current) taxes that have been pd for home, your income tax filings (1 or 2 yrs--??) and current pay stub.

The atty will ask you to give value to your posessions in your home based on if you were to sell it tomorrow at a garage sale or advertise in the classifieds. This is so they can make sure you don't exceed your exempted limit.

Someone who has a $150,000 speed boat that is pd for and wants to file bk, could solve there debt problem by selling the speedboat(luxury item) to pay off debts. So naturally the assets could be sold. BUT when you answer this question on the value--don't think of the sentamental value of what it is to you.

Example you bought your wife a 2 carat diamond engagement ring and it cost $8000 and you worked 3 jobs to buy it. Well now is sell time you go to the pawn shop and he gives you $300 for it because he is weighing the gold setting and the diamond doesn't have a value because it isn't measured in grams.

Anyway I hope this is helpful to you and all that might read this post. Once again sorry for the long post. I do have one more bit of advice to you--and that is look on the internet and do a search for chap 7 bk. That is how I gained my knowledge and I learned a hell of alot.

Good Luck!! Hope I answered your questions!!

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