Expert: Terry Leeders - 2/26/2008

Question
I am currently in the process of re-financing my home which I just bought 7-07 and everything going well with that BUT in a month or so I have to unfortunately file chapter 7 due to credit card bills, etc  which I have maxed out for groceries, living expenses, paying buyers closing costs on the home I sold in 7-07.  Is my house going to be protected, I really have no equity in it yet and I am not getting any money out of the re-fi.  Also I am about to send in my taxes and I wonder should I wait until I get my refund to file Chapter 7 so I can use the money to get my car fixed and essentially pay for the ch 7 filing/attorney fees?   Thank you.

Answer
Assuming you didn't put a lot of money down on the home, you should be ok.  Talk with your lawyer about the equity there, if any, and your allowable exemption to protect that equity.  Your refund is also an asset, and each state has different protection for tax refunds.  Some jurisdictions go after them no matter what, some don't bother. SO, talk with your lawyer to max out your protections!