Bankruptcy What happens?

You'll need to consult with a Bankruptcy Attorney. There are new BK laws that are in effect (unlike in the past when you can file BK, and everything is erased). The laws have changed with what you can and can't do with your debt.

Sorry, I'm not much help, but a specialty BK Attorney should be able to help you out with these questions.

Check out this website for details re: the new BK Laws:

http://www.bankruptcylawinformation.com/index.cfm?...

FYI Only: In the event you end up filing BK, it remains on your record for 10 years.

First, know that you absolutely do not have to file bankruptcy and there are other options. If you do file bankruptcy, you will NOT lose your furniture or other necessities.

If you can, keep current payments on your vehicle. As long as you are current, you will be fine and will be able to keep your car. The only entity that has the right to take the car that you are making payments on is the lien holder and that is only IF you fall behind.

Concerning bankruptcy and what can be sold to satisfy creditors, it depends on the state that you live in and what the exemptions are. Definitely check this out. The items that are exempt can not be taken by creditors during bankruptcy and can't be taken if you are sued. I live in Texas, have a whole lotta debt that I have not paid, and all of my property is exempt from creditors. I have even been sued by a couple of creditors but I have nothing they can touch because in Texas my car, household goods and even house (if I owned one) are safe. One thing most states have in common and that you will not be left without your necessities. When filing for bankruptcy, you have the right to re-affirm debt if you can keep paying on it. This is something you could do with your car.

If you are looking for more information on bankruptcy/exempt property see http://www.bankruptcyaction.com/bankruptcyexemptio...

This is just one site I found real quickly that gives this info. This site just demonstrates that you have property that will be safe--if you want to actually file--you should talk with a lawyer for more details.

Also, keep in mind, the amounts for the exempt property is not how much you paid, but how much it is worth (think garage sale prices). So if you see you are exempt $1000 in furniture, that doesn't mean purchase price so that $1000 will go further than you may think at first.

Another option you can consider is just not paying. The same property exemptions apply and then you can properly take care of your family in these hard times. I have done this and am extremely happy.

If you are looking for more information on the notion of not paying and continuing to live your life, I recommend you take a look at Mic Insky's book called Uncollectible: A Book about escaping credit card debt. I have included an excerpt I found helpful and inspiring:

"Because of the image the industry purchases, and the emotions the industry preys upon, people who fall into debt have a tendency to browbeat themselves. Many feel that they are fools for becoming overwhelmed with debt, regardless of how it happened. Still others are afraid of acting like an underhanded scoundrel or a low-life by not paying their credit card bills. The industry is betting on most debtors succumbing to such thoughts and emotions, thus continuing in their life of fiscal servitude.

Rest assured, you are not a fool for becoming indebted to the credit card industry, nor are you a low-life if you cannot (or do not) pay your bills. The credit card industry has become abusive."

Don't be afraid of bankruptcy. Yes the rules have changed, but it is still an action that you could benefit from. Me, I like a good fight. I'm having fun with some scum bill collectors now and loving it. Fight them! Good luck friend.

look at this one http://creditcardpay.blogspot.com/