Questions about a bankruptcy

I am looking at filing a bankruptcy but have a few questions.

1. I have a house, I have taken as much money on a second mortgage as I could afford last year so there is very little equity left in the house. Can I keep my house?

2. I just bought a new car in December, I am up to date with the payments, will I be able to keep my car given that there’s no equity in it?

3. Is it hard to get life insurance after bankruptcy, I have an existing policy and I assume it will be cashed in as part of the bankruptcy. Will it be difficult to get additional insurance after that happens?

Posted on Tuesday, April 14, 2009 | Filed under: Bankruptcy
 posted by Questions @ 7:38 am 1 Comment
1 Expert Comment:

 At April 20, 2009 | 1:33 pm , Barton Goth, Trustee in Bankruptcy Said...

In terms of your house. As long as you have less than $40,000 equity in the property, are up to date with your mortgage payments and are able to continue making your mortgage payments, then you should have any problem keeping your house.

You will find the same thing with the car. As long as you have less than $5,000 equity in the vehicle, can afford to continue to make the payments, are up to date on the payments and your lender has problem with this then you shouldn’t have any problem with the vehicle either.

As for your insurance, I haven’t seen to many people have difficulty getting life insurance as a result of a bankruptcy. Now if your health is questionable then you may have a problem, but it wouldn’t be because of the bankruptcy it would be due to your health.

Please type your comment below:

You must be logged in to post a comment.