Chapter 7 and Farm Land Assets
They are a family of four, two daughters involved in school activities, and one of them with braces. They have a house and two cars with car payment and like most of us credit card debts total about 45,ooo. They have never missed a payment on anything. Several years ago the moms grandmother left her some farm land, Not really needed the land she tried to sell it but no one wanted it.
The day life changed was the husband in commission sales got sick. Her income could take care of most of the bill cars and house but the credit cards there was nothing left. After 3 months the husband was not able to return to work the doctors were talking about applying for disability. With the credit cards the damage was done. They all raise the interest rates to 28 plus and double the minimum payments. She tried to sell the land again to pay the creditors but could not.
The chapter 7 would allow her to discharge the credit cards but the land was an asset. That is when we talked about just let it go, the farm land let the chapter 7 trustee have the land and he could sell it to the highest bidder and then he would settle with the credit cards. With the chapter 7 she would continue to make the payments on the cars and house but all the credit cards would be gone.
No one want to file a bankruptcy, but the bankruptcy laws are there for a reason. When our lives change and the income changes you can not pay the same bills on less money.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
