Can I go bankrupt for just my credit cards and line of credit
I own my own home and am up to date with my mortgage. My truck is paid off. My debt is mostly with a repoed car, credit cards and a line of credit. Is it possible to go bankrupt with just those debts without losing my home and vehicle(I have a daughter with sevre health problems and we need to travel out of town to dr`s appointments).
Posted from: Ontario
You can’t pick and choose which debts to include or exclude from bankruptcy – all of your unsecured debts must be included and will be treated the same way.
That being said, whether or not your house will be affected depends on whether or not there is any equity in your home. (Equity is simply how much money will be left to you after the mortgage and closing costs are all paid). If there’s no equity then your house will not be included in the bankruptcy. If there’s a little bit of equity your trustee will work out a payment plan for you to contribute an amoutn equal to the equity to your bankruptcy. If there’s more equity than you can repay, well that’s when the house may be at risk.
Use the links to find a trustee in your area and give them a call – they should be able to help you sort things out.