Ask a Lawyer - Archive

My husband and I are in the midst of filing Chapter 7, which is what they told us to file.

Are they going to take some of my other assets such as my house and cars to repay some of the debt we currently owe the credit card companies?

Do we have to seek credit counseling 180 days prior to filing?

Your question touches both bankruptcy and the mysterious "they". Who is the "they" who told you to file Chapter 7?

They should have explained that every state has exemptions which define the assets that a debtor can keep through the bankruptcy. Your exemptions are supposed to make possible your fresh start.

Exemptions is the only area where the law of bankruptcy is different from state to state. Congress let each state decide what their citizens can protect from creditors and the bankruptcy trustee.

Credit counseling is a requirement to file a bankruptcy. It must be taken within 180 days of the filing of the bankruptcy case. Most credit counseling services take an hour or so to complete.