Expert: Mark J. Markus- California Bankruptcy Attorney - 7/29/2009

Question
Live in NV.Husband and I own a small business.  Our customers have been paying 120 days late thereby affecting our payments and our personal payroll.  Will filing a Chapter 13 allow us to keep our vehicles that are used for and paid by our business as well as our mortgages.  We are able to make all of our secured debts easily, it is our unsecured credit card debt that is beginning to ruin us. We can make the payments but due to the late payments recently, the fees, interests and penalities have almost crippled our ability to stay current. Considering a Chapter 13 so that we can repay our creditors but with a more reasonable plan.  We own two homes, lease two cars and have one auto that is our personal vehicle.  How will a Chapter 13 affect these primary secured debts. Thank you in advance.

Answer
Yes, you can keep all your assets in a chapter 13 case.  The only thing it might affect is the amount of your monthly payment, as one of the requirements is that you repay your creditors at least as much as they would get in a Chapter 7 liquidation.  Thus, the value of your assets and the exemptions you have available under your state's laws factor into the analysis.  For more on exemptions, see http://www.bklaw.com/exemptions.html

As far as how the Chapter 13 affects the secured debts, that is a bit too complicated to answer in this forum.  You really need to have a comprehensive consultation with a bankruptcy attorney in your area.


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