How are car loans treated?
It’s up to you. You can keep the car so long as you make the monthly payments. If you want, you can surrender the car and eliminate your liability on the loan. Are all debts eliminated? Almost all types of debts are wiped out. Alimony, child support, student loans and recent taxes owed are not. If I decide to file bankruptcy, is it OK to keep using my credit cards? Absolutely not. Creditors are aggressive in challenging the elimination of recent credit card debt, especially cash advances. Incurring a debt without intending to repay it is considered fraud in bankruptcy. How much does a bankruptcy cost? I charge $1,500.00 for a Chapter 7, and the Court filing fee is $299.00. For a Chapter 13, I charge $2,500.00, and the Court’s filing fee is $274.00. (The Chapter 13 paperwork is more complicated and there is a second hearing I must attend.) In either case, you must go through a credit counseling session, on the phone or on-line, which costs $50.00 and, after filing, a personal money mana
