Avoiding bankrupting too few creditors

[questionsGA]

I'm in Georgia. I saw somewhere on the Internet that a bankruptcy will be turned down if a person is trying to do a bankruptcy on a selective creditor.

If we decide to go Chapter 7, we only have a HELOC loan and one credit card. We aren't going to list our other home that won't be foreclosed, because we want to live there and keep paying.

Is the HELOC and c.c. enough to not be dismissed for selective bankruptcy or should be charge a little on another account to have a third creditor?

Thank you.

[TooMuchCredit]

I'm in Georgia. I saw somewhere on the Internet that a bankruptcy will be turned down if a person is trying to do a bankruptcy on a selective creditor.

If we decide to go Chapter 7, we only have a HELOC loan and one credit card. We aren't going to list our other home that won't be foreclosed, because we want to live there and keep paying.

Is the HELOC and c.c. enough to not be dismissed for selective bankruptcy or should be charge a little on another account to have a third creditor?

Thank you.

You have to list all of your assets and debts. You can exempt a certain amount for certain assets...so much for a home, so much for a car etc. If you're item is worth more than what you owe on it/exceeds the exempted amount, you have to come up with that money or items that can be sold that equal that value.

So if you had a house that is worth 200K, you owe 150K and the exemption is 20K, you have to come up with 30K to give to the trustee.

[EricaCallaha]

It is not so much as to what you want to bankrupt, but your assets that are holding you back. You have to list everything you owe and OWN. You can't be selective.

Good luck.