My husband and I are considering filing for Chapter 7 Bankruptcy. I have a default judgement against me with a lien on our home from Midland Credit Services (an old BofA credit card in the amount of 12,000). My husband has a judgment against him as well in the amount of $4,000 but no action (wage garnish, lien, etc.) has been taken. We own a home but do not have much (if any) equity in it. My father is a co-signer on our mortgage and it is a FHA loan. We are current on our mortgage payments. I have a car that is paid for and my husband has a SUV that he owes about 4k on. Our credit is horrible (although the two judgments do not show up they still show as open past due accounts). Is the only way (with out paying) to get out from under these judgements to file bankruptcy? We have a lot of other smaller debt that has been "charged off" or sold. What should we do?? By the way we live in Massachusetts.
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I am not familiar with Massachusetts BK law, but the evidence FOR using a BK to get a clean fresh start is overwhelming.
Consult a few BK attorneys for a better answer. You will have to give them some real numbers - value of your vehicles, home, etc; the amount and type of debts and judgements you have; income for the last 6-12 months, bank account balances; any other major assets. The plain and simple truth is that you MIGHT have a risk of either losing a major asset to a BK Trustee or will have to pay to get it back, but the overwhelming number of Ch 7 BK filings are discharged as "No Assets - No Distribution" which means that you keep everything but your debts. Some pre-BK planning is generally necessary, so don't expect this to happen overnight...but a good BK attorney can give you a clear path to follow and peace of mind.
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