getting ready to file CH13 but

[despritfreya]

my brother is so demanding and fears he'll get screwed.

Here is the problem/issue. . .

If you file a Chapter 7 your brother will be screwed even more as the Chapter 7 Trustee will get the money back, if not voluntarily then by a court order.

If you file a Chapter 13 YOU will have to agree to pay the amount you paid to your brother to the rest of your unsecured creditors (so you will pay it twice). In a Chapter 13 you must pay to your unsecured creditors at least what they would have gotten in a Chapter 7. It is called "meeting Chapter 7 reconciliation". Since a payment that falls within 11 USC 547 is recoverable by a Trustee, if you do not want the Chapter 13 Trustee to go after the benefactor of the payment, you must pay your unsecured creditors the amount of the preference (less the statutory Chapter 7 Trustee fee). I am sure your attorney will explain this to you.

Hope I did not confuse you.

Des.

[5yrplan]

Should I make some sort of move with my vehicle? It's loan value is about 12K. 2103 GMC Terrain 82K miles. I own it free and clear. Thanks

[leonel9]

One thing you should not do is give your car to your brother, which would be similar to giving him the inheritance money. Also prohibited would be selling your brother the vehicle for less than fair market value.

As far as what other type of move you could make -- did you have a specific scenario in mind?

On first review it looks like you have a $7,000 motor vehicle exemption if you are using Iowa exemptions. If your vehicle is worth $12k, then you have about $5k that is not exempt. Non exempt assets would need to be accounted for by a CH13 repayment or negotiated with the trustee in a CH7 case.

The other thing that stands out is that you listed a "loan value." That value may not be acceptable in your jurisdiction. For example, in my jurisdiction it's common to take the KBB or NADA clean retail value, minus the cost of repairs/painting needed to bring the vehicle up to "clean retail" standards. For example, a 2013 GMC Light Duty Terrain Utility 4D SLT 3.6L V6 shows a clean retail value of $17,100. Without knowing the exact trim, body and options, it's hard to say if this is close to accurate for your GMC Terrain or not.

Have you spoken with your attorney about this? You now have at least two types of assets that you may not be able to exempt. Is there more?

[5yrplan]

I own a 03 Harley worth about 6K and a motorcycle popup camper worth about 5K. It sounds like my tax refund of 1k and my inheritance 11.9K will both arrive this week. My income is 65K. My attorney thought they would allow my Terrain. I see some on here were advised to get new cars.

[Tinker]

Some of the advice you were given corresponds with stuff my atty told me.

First, you should have no problem keeping your tax refund. I had one the year I filed, too, and was able to keep it (I filed in Feb.).

I was also advised to stop paying credit cards and mortgage; that kind of advice is common. Two reasons: One, if you are more or less caught up with payments then the court will see as you not having a need for BK; two, my atty told me to use that money to take care of any neccessary car repairs,etc. and get them done now while I had the money.

As for the inheritance, I don't see a good outcome for that. My understanding, especially for the kind of money, is that the trustee will take it.Even if you already had it and filed bk, say, within 6 months of receiving it,they'd want it. I'd ask your lawyer to confirm what s/he told you.

Good luck!