What Bills Can I Include In A Chapter 7 Bankruptcy?

[Atmore]

Here is what you can exclude from bankruptcy:? Homestead(equity in your primary residence) - depends on your state. In Texas, there is unlimited homestead. In Arizona, it is limited to $100,000 in equity. Check the rules for your state.? Automobile(equity held in one vehicle) - up to $3,225. The equity in your car is based on the car's market value, less any loans against it. If the car is leased, it is protected from bankruptcy because you do not own the equity in the car. You can exclude as many leased vehicles asyou have. ? Household Items(appliances, furniture, clothes) - up to $10,775 and $525 maximum per item. This is what you can get for the items, not their replacement value. Most creditors do not want any of these items. They have very little value. ? Jewelry and Heirlooms - up to $1,225 in value. ? Tools of the Trade - up to $1,850 in value. ? Life Insurance - includes disability benefits and unmatured life insurance policies. Cash value is protected ? Alimony and Child Support - amount reasonably necessary for support of debtor and dependents. ? Public Benefits - such as unemployment, workers compensation, public assistance, Social Security or Veteran's benefits.? Retirement Funds - are exempt under § 522(d)(12) of the Bankruptcy Code. The exemption applies to pension, profit sharing and stock bonus plans, employee annuities, Individual Retirement Accounts(IRAs), deferred compensation plans such as your 401(k) account, and certain trusts. The 2005 amendments to the Bankruptcy Code expanded the protection allowed to certain tax-exempt retirement plans that weren't always protected under former law.You need to sit down with a bankruptcy attorney and go through the list of your debts. He will tell you which items to declare. Each persons situation is different. By still making a house payment or car payment, if you can, you will be allowed to keep those items.That is why is is extremely important to use a good bankruptcy attorney. He can help you protect items you never thought you could protect.   WEALTHADVISOR 28 months ago

[MacInnes]

Utility bills. This one is tricky because you will need utilities after the bankruptcy, and it is usually with the same utility company.You can include your utility bills in the bankruptcy, but, under section 366 of the bankruptcy code, the utility company has a right to an assurance of payment.So, as soon as the bankruptcy is discharged, you have 20 days to make a deposit with the utility company for twice your average bill monthly or quarterly bill. So, if for example your average bill is $200, you will need to make a $400 deposit with the utility. If you don't they can turn off the service.If you owe more than twice your average monthly or quarterly bill, include the utility in the bankruptcy. If you owe less than two times your average monthly or quarterly bill, pay the utility bill.   WEALTHADVISOR 28 months ago

[wiley]

If you don't pay a water bill, generally a lien is attached to the home. Additionally, they are generally municipality bills, so probably not discharagable. Talk to your attorney.   Schelli 28 months ago

[Dorion]

You should include all of them; however, there are certain bills which can not be discharged, such as student loans, taxes, child support and government fines.   Schelli 28 months ago