Newbie...... Questions

[Bigt61]

Due to the changing economy, job loss, etc etc....


I now have about 20k worth of credit card debt.

I have a citi card, ge money bank card, and a first financial bank credit card.

can all of these cards be discharged under chapter 7?

I don't make the median state income of about 70k per year for a 3 person household, and I am the only income on my house. My wife does not work, and I have a 3 year old.

I do not use these cards, they are maxed out, and I am struggling to keep my head above water keeping up on my basic living expenses, and the credit co's just raised my rates and min payments thru the roof.

All the cards are in my name, and my wife has nothing to do with them.

I was researching chapter 7, and if you are current on your bills, you can keep your house and your car if you want to re-affirm them.

I want to keep my house, and owe about 3500 on my wife's car and we need to keep her transportation.

I live paycheck to paycheck, and have no money in the bank except to pay bills with. Basic furniture, nothing fancy. HEck, I don't even have a kitchen table lol....

Would filing chapter 7 erease all of the debt for the ge money, citi, and first financial cards, and let me move on with my life saving money? I dont know if you can file GE money bank cards on chapter 7 and get them discharged?

Also, I have a 1999 F150 that is paid for, but have read you only get a 3k exemption for vehicles........ I want to keep my truck, wifes car, and my house..... is that possible? Details? Remember, I'm new.

[BobMango]

We'd need some more information to answer all of your questions, but in general, most unsecured debt can be discharged in Chapter 7. Student loans and tax obligations being the biggest exceptions. If you haven't made any cash advances against those cards and have not used any to pay taxes you should be able to get them discharged.

Depending on your state you may have additional wildcard exemptions that you can apply to save the vehicles.

Many people are able to keep their houses and cars by "paying through". This is not really an option available under the bankruptcy code, but it seems to work as long as you remain currrent on those secured loans. The other option is to sign reaffirmation agreements, but those have significant downsides as you'll discover with some reading here.

Your best move at this point is to schedule some free initial consultations with bankruptcy attorneys in your area. Good luck.