No Unsecure debt

[Dannmcg357]

If one files chapter 7 with no unsecure debt,(no student loans,no credit cards, no unsecured loans) only car payment and mortgage. What then? Will the trustee want money for secured debts?

[needachance]

So you are saying that all your debt is the mortgage and cars? It is my understanding that if you cannot bankrupt your house and cars without reaffirming and paying for them. If it is just house and car debt and you cannot pay them then I would try to sell and get out from under them. Do you have medical bills or what? what put you in the position of needing to declare BK?

[Dannmcg357]

is my understanding that if you cannot bankrupt your house and cars without reaffirming and paying for them.
I don't understand the above statement. Suffice it to say that the down turn in the economy has cut my incomce in half and my wife lost her job. I made a hard ship with drawel from 401k to pay off unsecured debt. I have treaded water all I can. I don't want to reaffirm the house, and on that note i can't sell it for what is owed. I only want to keep one car.
Thanks for any help.

[nc73]

You took out money from your 401k just to pay off unsecured debt? I wouldn't say that was the wisest since you are looking into filing. 401k is exempt. In any case just walk away from the house, why bother with a bankruptcy?

[needachance]

Why not just forclose and sell the car? Then start over.

[Dannmcg357]

Can someone answer the question with out brow beating me ? The house is a manufactured home from Palm Harbor ok, its not worth what I owe and if I walk away they will sue me for the deficiency.

[freedom7]

you can absolutely file a chapter 7 and surrender the house and one car, as long as you pass the means test and you don't have too much disposable income...good luck

[needachance]

Sorry if my answers came across as brow beating. I really don't understand the question you are asking. You did not ask if you would be allowed to surrender your assets and walk away with a no asset Chapter 7, you asked if the trustee would want money for the unsecured debts. There is not easy answer for that, but if you want to keep the secured debts then yes they will definitely want money for them, if you intend to walk away from them then I don't know if they will come after you for a deficit sale. Have you tried to get a loan modification or talked to your bank about a short sale to get out from under the house?

[Dannmcg357]

I see the folly in the way I asked my question. I apologize, just that im tired and stressed out like a lot of people here I guess. Ok, the situation with the mortgage is that I was stupid, taken advantage of, and now I can't pay for it. I also now understand that the manufactured home loses value, and will continue to lose value. That makes selling it not an option being under water in it. The mortgage company 'CountryPlace' is owned by Palm Harbor and I have had several conversations with them. They are unyeilding and are going to be very agressive about the situation. No they won't do a loan mod, no they will not do a deed in leu, no they will not do anything to help but foreclose and sue for defiency. So I guess what I mean to ask is: Yes can they still get a judgement for defiency if I file 7, and with no unsecured debt can I keep any cash/assets I have? (I know I have to report it)
Thanks again and sorry for being hasty.

[keepmine]

Include the mortgage in your bk and any deficency balance is discharged.
BTW, a deficency balance is considered unsecured debt.

As to assets you can keep in a Chapter 7-that will depend on what your state allows you to exempt.
Most bk lawyers give free or lowost inital consultations. Speak with a few and get all of your options explained.

[Dannmcg357]

no unsecured debt

OK
I file bankruptcy due to insolvency. I am current on mortgage but surrender the home. I reaffirm my only other two debts, payments for two trucks. My wife has money in savings and money market account. Will the court/trustee still take that money when their are no unsecured creditors ?

[DebtEnder]

If you cannot exempt the remaining cash assets/investments you have then yes the trustee will want them.

You have not said what state you are in or how much cash asset you have left so I can't advise you one what might be exempted.

As others have said yes you can BK a house and car you are current on now but underwater and there is nothing the lender can then do to you. Any assets you have that are taken by the trustee would be used to pay the underwater amount to the bank.

[Dannmcg357]

Well what I don't understand is at what point can you start saving, I mean can he just come and take what you have 6 mo to a year later?

[AMISLANDER]

If one files chapter 7 with no unsecure debt,(no student loans,no credit cards, no unsecured loans) only car payment and mortgage. What then? Will the trustee want money for secured debts?

I've personally not heard of filing bk on just house & cars, usually credit card or medical bills are involved.

If the manufactured home is worth less than you owe, it sure sounds to me like foreclosure time.

It sounds like you're in Florida.

Anyone that's trying to give you some info will need to know your state, then you can look up what's exempt; don't get all freaked out, we've been through it & lived.

[DebtEnder]

Well what I don't understand is at what point can you start saving, I mean can he just come and take what you have 6 mo to a year later?

Most people will tell you can start saving right after you file. Other might say after your 341 hearing. Others might be really conservative and say after you are discharged or even closed.

I personally started putting money away the week after I filed and now have a decent saving built up for a new place to rent/rainy day.

In short BK is supposed to be a snapshot of your fiances on the day you file. Future concerns are ill-relevant unless you get an inheritance or have money coming in from work you did before filing.