First of all can I know as to why do you want to file bankruptcy? What is your present credit condition? If you could have provided more information, it would be much easier to help you in taking the right step. If you file bankruptcy, this can stay on your credit report for 7-10 years, and hurt your credit.
Now, coming to your question, yes, you can file bankruptcy if you have two houses. What will happen after the filing depends on the chapter under which you will be filing. You can file bankruptcy either under chapter 7 or chapter 11. However, once you file bankruptcy, an automatic stay comes into effect that prohibits the creditors and collection agencies from continuing with any collection process.
If you file chapter 7, all your non exempt assets will be sold off by the trustee to pay off your creditors. However, chapter 13 is a bit different. This is more like a repayment plan, where you can keep all your assets, if you can pay the dues (the whole or part) according to the repayment plan approved by the court. However, bankruptcy law varies according to the states. Thus, you will have to check out the bankruptcy laws in your state.
filing bankruptcy
Hi pinedajm,
Welcome to this community :)
First of all can I know as to why do you want to file bankruptcy? What is your present credit condition? If you could have provided more information, it would be much easier to help you in taking the right step. If you file bankruptcy, this can stay on your credit report for 7-10 years, and hurt your credit.
Now, coming to your question, yes, you can file bankruptcy if you have two houses. What will happen after the filing depends on the chapter under which you will be filing. You can file bankruptcy either under chapter 7 or chapter 11. However, once you file bankruptcy, an automatic stay comes into effect that prohibits the creditors and collection agencies from continuing with any collection process.
If you file chapter 7, all your non exempt assets will be sold off by the trustee to pay off your creditors. However, chapter 13 is a bit different. This is more like a repayment plan, where you can keep all your assets, if you can pay the dues (the whole or part) according to the repayment plan approved by the court. However, bankruptcy law varies according to the states. Thus, you will have to check out the bankruptcy laws in your state.
Thanks,
Aaron