Quote:
Originally Posted by dd74
In the slight chance someone has these equities before they claim BK, won't the creditors claim them?
|
AFAIK, your 401k is untouchable for any reason and you're allowed to keep one car per driver up to a value of around $10-$12k. If it's worth more, you have to sell it, buy something within the exemption limit and use the difference to pay down debt. I think your primary home is also untouchable, but the lender can foreclose if you can't pay them.
Sammy, if you can't pay, you can't pay. I'm not saying my friend's problems aren't largely of his own doing. But as I understand it, most BK's are due to medical bills, even those of folks with insurance. Being on the hook for 20% of a major illness can quickly crush most people financially. And if you're upside down on your house, on the hook for the loan you got to avoid a short sale on your other house, unemployed and have burned through every dime of savings and retirement $$, what are you supposed to do? Delivering pizzas might show effort and good faith, but it ain't gonna make a dent in the problem.