Two Questions

[visual84]

1) Can you file BK if you are currently enrolled in a Debt Counseling program?

2) If you have certain debts that you don't want to file under BK, can you leave them unaffected, and pay them as you normally would?

[CATCHMEIFYOUCAN]

1) Can you file BK if you are currently enrolled in a Debt Counseling program?

I would ! AND I did ! Based on my experience, TOTAL RIP OFF. Bk offers protection (like the automatic stay) where as those programs don't have any guarantees. AND they will try to steer you away from filing Bk. But do you homework and you'll see what I mean. I stood to lose $3500 had I stuck with them. They even were bold enough to tell me I wasn't going to make it.

2) If you have certain debts that you don't want to file under BK, can you leave them unaffected, and pay them as you normally would?

You have to list all your debts, after your Bk it is up to you whether you want to continue to pay them. Depending on what your filing (i.e: chapter 7) once your discharged, why bother, you got a whole new life ahead of you debt free. Unless you are planning on paying a family member back?

Others will be chiming in to lend their experience and thoughts.

Best of Luck, Catchmeifyoucan

[yoyoma51]

Welcome to the forums!

1. I don't think there is anything that can stop you from filing bankruptcy while in a debt counseling program. I believe most of those programs are run by private companies (although not for profit, perhaps). Bankruptcy is a federal government program. I doubt agreements with private firms can supersede federal bankruptcy laws.


2. When filing bankruptcy, ALL debts, secured or unsecured have to be disclosed. You cannot "hide" any debts (unless you want your case thrown out and not allowed back for several years - if ever). In most cases, the court does not like you to show 'preference' to one unsecured creditor by wanting to repay them while while wanting other creditors discharged. It is a completely different story if it is a secured debt (car loan, mortgage, etc.). You can "reaffirm" (continue to pay) these debts or walk-away from them.

Talk to several local bankruptcy attorneys in your area. Usually the first consultation is free (and confidential, too).

Hope this helps!

PLEASE NOTE: I am not a lawyer. Bankruptcy may or may not be a best scenario for you. It depends on your situation. You may assume my advice is useless. Talk to an experienced bankruptcy attorney (or three) in your jurisdiction for legal advice.

[visual84]

Well the second question is mainly referring to a car loan. I have a car that is in mine and my dad's name, but my parents take care of the payment. I know I shouldn't be ashamed of BK, but it's something I just don't want my family to know about, if I can help it. Therefore I would like to just leave this loan alone, because if it's "wiped out" it will be obvious. There isn't much left on it anyway.

A third question: Can your car (or anything else) be taken away from you if you file BK?

[yoyoma51]

Please clarify the car issue.

1. Is the vehicle titled in your name, your father's or both?

2. Is the vehicle loan in your names, your' father's or both (is he a co-signer for you, etc.).

Can you keep your car?

Very possibly. If you own LESS than it is worth (or have equity), you may be able to 'exempt' that equity (depending on how much equity you have, your state laws and if you are eligible for federal exemptions. If you owe MORE than it is worth, you most likely would be able to keep it as the lender would want you to keep making payments rather than take it back and loose money selling it.

It really comes down to HOW MUCH you have in assets AND WHAT STATE you live in. How much stuff do you have and where do you live?

[rrockinggramma]

And because your Dad is on the title, he will be notified by the BK court of your BK. If you leave the car off and the trustee finds out about it, you could end up having your BK dismissed for fraud. You need to come clean with your Dad so when the notice arrives in the mail there are no surprises