Chapter 13 Questions

[taramilo]

Have questions about chapter 13 and how payment plan is setup.
Would appreciate some advice. I make approx. 4600./month takehome. After vehicle x 2 payments (1400./month) RV payment (637/month, work 140miles from home.MH Balance 27000(400/month) Real Estate note 542/month)500/mnth for livestock/pet feed and vet needs, I barely have enough to have monies for necessities. Have stopped being able to pay CC and Timeshare payments several months ago. Attorney said our real estate would be exempt (330acres in Texas, have a ranch). Guess what I am saying is the Credit Counselor figuired my debts totaled over $ 5000/month, way more than I make. Spouse is Self Employed running the Ranch. Told can't put the trucks in (bought 1/07) or the RV (bought 9/06). So is possible would not have a payment plan since I don't have enought to pay what I have now?

[HHM]

Did the attorney think that a Chapter 12 (Family Farmer) BK might be an option. Since those BK's are pretty rare, I don't have much to say about it, but I believe there may be some added benefits to doing a chapter 12 vs. a standard chapter 13 assuming you would qualify as a Family Farmer under the BK code.

[taramilo]

Chapter 13 question

Thanks for the reply. The attorney never mentioned BK 12 but on the criteria I found it reads that at least 50% of your income must come from the farm and unfortunely most comes from my job. I am wondering if it would even help much if we filed a BK 13 with having so much, every 2 wks (>50%), on just the debts I can't put in it. I currently have a judgement against us and I am sure more are not far behind. Husband unable to work, bad knees. Thought about the RV (surrendering it) but I need it to have a place to live as I work approx. 140 miles from home. Attorney said the timeshare will probably file a 1099c on theirs (not even sure what a 1099c is).

[SinkingFast]

Thanks for the reply. The attorney never mentioned BK 12 but on the criteria I found it reads that at least 50% of your income must come from the farm and unfortunely most comes from my job. I am wondering if it would even help much if we filed a BK 13 with having so much, every 2 wks (>50%), on just the debts I can't put in it. I currently have a judgement against us and I am sure more are not far behind. Husband unable to work, bad knees. Thought about the RV (surrendering it) but I need it to have a place to live as I work approx. 140 miles from home. Attorney said the timeshare will probably file a 1099c on theirs (not even sure what a 1099c is).

1099C is where they forgive the debt. The debt then becomes taxable income to you. So when you file taxes the next year, you'd have $XK additional income you'd be liable for taxes on.

I know 140 miles is a lot, but we've been there done that. When we lived in South Central Illinois, lots of people drove to St. Louis to work jobs. Some took what they called "Day Apts". I think they were furnished Studios but cheaper than a hotel room would be. Hubby drove back and forth every day. Maybe you can look at some alternatives to owning the RV.

Hopefully others will have some additional thoughts for you. It's a shame that Family Farmers can't make a living working the land any more in this country!!

[taramilo]

Chapter 13 question

I have thought about it but can't see how I would live while working without it. I worked in a resort area at a hospital on the coast and the cost of housing around here is high! Guess what I am looking at is if It would help us to file or not. Attorney says yes but I am scared she is just looking for the money. Does anyone know how much these judgements can hurt you? Weighing the pros and cons is it better to file the BK. They do take into consideration whether you have any money left over after the bills you can't put in don't they? Gees the fuel alone for the Ranch and my commute is at least 400-500/month by itself. Much less the electric, gas, food and clothing we need or the medical. You guys are great and I am glad I found this forum.

[SinkingFast]

One thing I think is fairly certain,............

Since you have the Ranch, that should be where your Homestead Exemption will go. The RV probably will be considered a vehicle for BK purposes. So now you have to look at your State's (or Federal if that's the way you choose to go) Exemptions will allow for a Vehicle.

You drive to your place of work and basically live in the RV thru the week. Then come home. Driving back and forth isn't really an option. And the cost to "Rent a Bed" so to speak, would be prohibitive. Is that about right??

When I went back and looked at your original post, you said the attny told you you couldn't include your car and RV payments inside the Plan. Is that right?? If so, did the attny say why?? How much equity do you have in your vehicles and the RV??

Have you chatted with more than one attny?? If not, I'd suggest you schedule at least 2-3 more Consults. Stagger them out a bit. Give yourself some time to learn about BK. What it is and is not. How things work. Then, as you go to Consults, you'll better understand what the attnys are saying to you and know what questions to ask.

You said Texas so here's a link for you about Exemptions:

http://www.dallas-bankruptcy.com/ban...exemptions.htm

That's a place for you to start.

[taramilo]

Chapter 13 Questions

Thank you for the reply, you answered some of the many concerns I have. In response to your questions:

1. The attorney said I had to have had the RV(it's a Fifth-Wheel) for a year and the two trucks for 2 1/2 years before they could be included in the BK.
Bought the Trucks this January(on advice from Credit Counselor)and the RV last September.
2. Have only talked to the one Attorney, only have 2 others in my area that the Credit Counselor gave us.

Went to the Web site you recommended and it was a big help. Although several things in it concerned me, and I qoute:

1. A family is entitled to property with a fair market value of up to $ 60,000. My husband owns 330 acres which was inherited and is used for the ranch. We have a $ 34,000 loan out against 70 acres of it. My concern? I am worried about losing the family ranch!!!!!!!!!!!!Attorney said it all would be exempt though.
2. Farm animals: The following animals can be claimed as exempt: Two horses( we have four that we use for the Ranch except two of which one is blind and the other unbroke) 12 head of Cattle: we have about 40 head entirely for the Ranch. My concern? Losing our cattle and the income to run the Ranch. Attorney was vague on this.
3. Limited protection: court cannot order turnover of paychecks.......If the wages are deposited into a bank account they are subjected to garnishment.
My concern? Am I supposed to stop the Direct Deposit and not put my paycheck in the bank at all.
Thanks to all who are helping me here and in the future. I will certainly schedule consults with the other two Attorneys this coming week.

[quietsound]

It's a shame that Family Farmers can't make a living working the land any more in this country!!

yes, perhaps if our dog food companies used american farmers instead of other countries to produce our dog and cat foods. IF we used our country's farmers maybe these poor animals would not have been poisoned with rat poison ..........my poor animal almost died on sunday night

[Granny]

Living in Texas, judgements mean almost nothing. They come into play:

1. On your credit reports
2. If you sell property

Judgements are good for 10 years from the date they are filed and can be re-newed but almost never are, including IRS judgements. There are only two ways your accounts and wages can be garnished in Texas

1. For child support
2. For unpaid taxes

Speak to another attorney and ask him to tell you about what effect outstanding judgements will have on you. There may be some special circumstances because of the farm that I am not aware of, but I'm pretty certain that I am correct here.

Personally, the only reason I can see for filing for bankruptcy in Texas would be to keep property, which is what we had to do.

Good luck