money in bank and secured loans???

[nojusticehere]

Hi everyone, well it's count down. I'm meeting with my atty tomorrow to look over and sign the papers to file. I have two questions:

1: I get paid only once a month and I'd to know what is an acceptable amount of cash to still be in my checking account on the filing date and at 341? I've already recieved my tax refund which was $1600. I'd like to use it to pay my atty and will find out tomorrow if I can. I got paid on the 31st and need to use that to live throughout the month or do I need to withdraw most before filing?

2: I have a a furniture payment with a local furniture store, which is $210 per month and it is current. I've had this for a year now and still owe around $1300. Can I include this in the 13? If so will the company repo the furniture? I know that I can pay this outside the plan, but wondering which would be the best? I will be paying for my car outside the plan since another family member is on the loan and it is current.

Getting nervous!!

[jgarton244]

1. How much is in your bank account at filing is not an issue as long as it is not excessive to your monthly expesnses. The only time I see problems with monies in a bank account is with credit unions. They have been known to deduct from your account if you have loans or a cc with them. If it is not in a credit union account, I would noy worry.

2. If the furniture is a secured loan, then the trustee would pay that off first, then the balance of your payments would go towards unsecured creditors. Additionally, if a furniture store wanted to repo the furniture, what reasonable value could they expect to get after expense of repoing, picking it up and trying to sell used furniture. It is probably not in their best interest to repo. Yes you can, and legally have to include all debt in your filing.

When we filed, I requested that we be able to pay the trustee directly each month by personal check, rather than payroll deduction. Trustee had no problem with this arrangement. This is of benefit at the end of plan, as with paytoll deductions, many continue for a period of time past the end date, and you have to wait several months to get that money back. With our direct pay, we made last payment at final due date, and did not have to wait for overpayment funds.

[nojusticehere]

Great, then the secured will also be included in the plan and I won't have to pay an additional (outside) payment. Correct? I have not made a payment on the furniture this month, should I since it will be included? It's current and not due until the 13th. I'm not with a Credit Union. and I just want to make sure that it won't be a problem. If it's not an issue at the time of filing, is it an issue at the 341? Thank you.

[helpsoneeded]

money in bank

I thought you were allowed to have money in the bank. in ny state though you could have up to 2500 and that doubled if married. Is this correct?

[253BK]

If you are planning on filing you might as well not make the payment on furniture really just wasting money they can get paid over the next 3-5 years with no intrest if they file a claim if not you get the stuff free! I wouldnt count on that though

[nojusticehere]

Well, just found out that I qualify for Chap 7 and will be going that route. I will be reaffirming the furniture and vehicle so I can keep. Going back to my atty Wed a.m to sign the papers. After all the figuring it was determined that I had less than $5000 over a 5 year period. I'm well above the median income for Florida, but after all deductions I made it to a 7.

[krielly]

Just a note here on my personal experience with a furniture loan.

We had just purchased a new living room set about 1 year before filing. When we were filling our our petition, we told the paralegal about our furniture loan. She started to list it as a secured creditor. The attorney said, "wait a minute, let me see that contract". After looking it over he said "this says "line of credit", I don't see anywhere on this contract that this is a secured debt!"
He instructed the paralegal to list it as unsecured, and then told the paralegal to let the furniture finance company file a proof of claim the "proved otherwise".

Just a thought. Our furniture was listed as unsecured, non-priority.

Might want to take a look at your contract, it's possible that it could be discharged and you could keep it. Maybe just a slight chance, but worth examining in my opinion.

K

[nojusticehere]

Wow, thanks for the info!! I'll definitely look into this! Let me go search for the application!!!

[nojusticehere]

Now, wouldn't you expect I could find the contract???? I can't find it. I'm on my way there to see if they can give me a copy. Wish me luck, lol

[krielly]

Good Luck!

[nojusticehere]

Ok, I went to the furniture store and asked for a copy of my application and sales receipts. They didn't have the original credit app, but they did have the sale receipt. So they provided me with a copy of the credit app they've used for years and my receipt. From what I can see nowhere does it reference the furniture as security. Something to look at. I'm going back to see my atty on Wed a.m and I'll ask then. Again, thanks for info. At the very least, I only have 6 more payments, so.....I may just go with it and bite the bullet with this one. They are a local company and it may be to my advantage to just pay it. We shall see.