Expert: Terry Leeders - 9/9/2008

Question
I am considering filing bankruptcy due to a divorce a year and a half ago and all the debt that I incurred. I have a 2005 suburban that I owe about $15,000 more than it's worth. Would it be better to just let them repo it or file bankruptcy? I could pretty well handle all my other bills if the suburban goes (other than a discover card with about a $5,00 balance). Also, my ex husband still owes me about $15,000 from equity in our home, but I don't foresee getting that anytime soon even though it was supposed to happen within 60 days of the divorce. My divorce attorney said that if he ever does pay me that money that the bankruptcy court will take it......is this true?

Answer
If you don't want the vehicle, you can surrender it and clear the balance, you sometimes can get it refinanced thru a redemption.

Property settlements in divorce are assets in a bankruptcy case.
However, you should meet with an attorney to discuss how to maximize your bankruptcy exemption protections.