Expert: Terry Leeders - 4/23/2008

Question
If I filed bankruptcy because of inability to meet my debts will they go after my primary home - it has little if any equity. Also will they get money from my paycheck and will my employer find out?

Answer
If you have no equity, your home will not be sold thru bankruptcy, and you can keep it as long as you stay current.  If you pass the means test budget analysis and qualify for chapter 7, you will not have to pay your unsecured creditors after bankruptcy.  If you qualify for the chapter 13, then you will pay back a percentage of your debt over 3-5years.  You should speak with a local bankruptcy attorney to see what chapter is best for you, and to confirm what assets you can protect under your local exemption laws.