02 Mar Common Bankruptcy Questions
Can I keep my house if I file Chapter 7 bankruptcy?
Losing your house is rare and depends on the amount of equity you have in your home. Equity means that the amount you owe on the house is worth less than what the house is currently worth. This amount is considered an asset. In Kentucky, there is a homestead exemption for bankruptcy filers. This amount is currently $23,675.00 per debtor, and this number is doubled if you are married and file a joint bankruptcy. If the equity in your house is less than this amount and you are current on your house payments, then you should be in no danger of losing your home if you file for bankruptcy. At Millward and Castle, we take pride in making sure your home is protected.
Can I keep my vehicle if I file Chapter 7 bankruptcy?
Similar to a house, losing your vehicle is rare and depends on the amount of equity you have in the vehicle. In Kentucky, the current exemption for vehicles is $3,775.00 per debtor. If the equity on your vehicle is less than this amount and you are current on your vehicle payments, then you should be in no danger of losing your vehicle if you file for bankruptcy.
Will bankruptcy ruin my credit?
It is true that your credit score may be negatively affected by filing bankruptcy. This is different, however, from your ability to get credit from a lender. Getting credit is based on your ability to make payments in the future, so filing bankruptcy may actually help your ability to obtain credit in the future if you are able to discharge a lot of your debts. Without all your debts overwhelming you, many creditors may actually view you as a better credit risk. For 8 to 10 years, your credit report will show that you filed for bankruptcy, but you can work at rebuilding your credit after your bankruptcy is discharged.
If you think you may qualify to file Chapter 7 bankruptcy, call Millward & Castle at (606) 546-5114 to set up a free bankruptcy consultation.