Personal Bankruptcy bankruptcy and keeping home and car

[sewingruby]

Due to medical issues and loss of income to be with our ill child we have to possible turn to bankruptcy. My question is, can we still keep our home and our car? They are both current. We are just unable to pay off medical and credit card debt and have not extra money for that. Could our home be in the bankruptcy and we still be able to keep it or are there other actions we could take to make sure we keep our home? Desperately seeking advice?!.

 

[Theresagail]

Yes you can keep both-- Keep them current and make sure to reaffirm them in the bankruptcy -- You will be fine

 

[sewingruby]

what does it exactly mean to reaffirm?

 

[Theresagail]

You reaffirm the debt making it as if Bankruptcy never happened-- Just tell your attorney you want to reaffirm w/ the house and the car-- you will sign papers stating you are reaffirming the debt-- your attorney will sign, the creditor will sign and most important, the signed reaffirmation must be filed in the bankruptcy courts before you get a discharge int he bankruptcy other wise it is invalid.

 

[sewingruby]

Tax return

I was wondering if you filed bankruptcy if it would affect your tax return. My bankruptcy is not for back taxes, it is for unsecured debt. Another question is can you put your home in the bankruptcy and still keep it or do you have to reaffirm it in order to keep it? Thanks!!!

 

[Theresagail]

Yes you can KEEP YOUR HOUSE! YOU MUST REAFFIRM IT.

 

[Theresagail]

it will effect your taxes they might keep your returns-- if you owe you will still have to pay them

 

[sewingruby]

Thanks for getting back to me. Do you know how long they could do that for and could we change how many we claim?