Q: If your house is paid for, you have bad credit and cant get a loan on your house should you file chapter 7 or 13
A: Really this just depends on your situation. When you file bankruptcy you must list all of your assets. Failing to do so is a crime upon a federal court (very serious). If your house is paid for it might be a better option to try to negotiate with your creditors. Chapter 13 might be a good option because it can restructure the debts on better terms and within 5 years the debt is paid back. In conclusion, it all depends on the amount of debt and the assets you have. The house would be subject to the bankruptcy rules and as such would be available to the creditors for repayment of debts according the the Alabama bankruptcy exemptions. Please feel free to contact me should you need further assistance.
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