My wife and I are considering filing jointly for chapter 7 bankruptcy. I was laid off from my job 11/08. My wife works & makes about $20K.

UPDATED: Jun 1, 2009

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My wife and I are considering filing jointly for chapter 7 bankruptcy. I was laid off from my job 11/08. My wife works & makes about $20K.

Will we be in danger of losing one or both of our paid off cars in this situation, a ’04 Ford Ranger P/U and a ’97 Infinity Q45.We had to short sale our home because of my job layoff. The mortgage company is filing a judgment against us for $54k. We also have about $4k in cc debt. We have exhausted all our funds. The only things we own are some household furnishings. I also have $28K on a government student loan for my son which I assume would not be discharged.The IRS median income for two people and one earner is $44,922 in AL. We are currently living in the basement of a longtime friend.

Asked on June 1, 2009 under Bankruptcy Law, Alabama


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

You can keep up to $3,000 in personal property.  Looks like your cars will be affected, at least the newer one. 

What I've done is to provide you with 2 links that will generally explain the bankruptcy process in Alabama.

You need to speak with an attorney on this.  Try legal aid or see if there is a law school nearby to you.  They have legal clinics that can help out with just this sort of situation.

Best of luck.

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