Hi all. So glad I just found this group. We had our first consultation with the lawyer last week and will be meeting with him again on Friday (Halloween!) to fill out the paper work. I have so many questions and just want to make sure I'm doing this right. Thanks in advance for any and all help!
Here's the situation:
All debt is unsecured CC. Totals about $80,000
Own our home and all vehicles, no other loans or debt of any kind
1st ($500) and 2nd ($733) mortgage
We passed the means test but as we have more equity in our home than we owe, can not do a ch 7. Essentially we could sell our house and our cars and pay off our debt. No need for filing bankruptcy. However, our home loan is through a private lender (family member) so selling our house is not an option. Also, our mortgage payments are only $500 a month. We would not be able to find less expensive housing anywhere.
Lawyer suggested ch 13. However, our home is worth too much (we paid $305,000 2 years ago). He wants to claim its only worth $275,000 so we can file. Homes in our neighborhood are going from $240K to $370k. Will the trustee check the actual value of our home or take our word for it that it's worth less?
Here are my questions:
1. Can we keep our debit cards from our checking account?
2. Our lawyer mentioned they take your tax returns. Does this count toward the overall debt we owe or is it just a bonus payment?
3. Are we allowed to save money or do they take it from our checking account?
4. I sell things on ebay. Its not reported on our income tax but does show up on our bank statements. It's completely irregular. Can they take that income?
5. Part of the reason we have so much debt is because I started a business this year entirely funded by CC. The business is doing okay but not yet turning a profit. When (if) it does, will they start taking extra money since I could be adding income?
Basically my main concern is that they will take every extra cent we bring in. We have no disposable income. All the money we make goes straight to paying bills. My husband's income is not fixed. He's a mechanic and only get's paid when jobs come in. No work = no pay. There is no base salary. I'm just worried we can't buy clothes for our kids.
Here's the situation:
All debt is unsecured CC. Totals about $80,000
Own our home and all vehicles, no other loans or debt of any kind
1st ($500) and 2nd ($733) mortgage
We passed the means test but as we have more equity in our home than we owe, can not do a ch 7. Essentially we could sell our house and our cars and pay off our debt. No need for filing bankruptcy. However, our home loan is through a private lender (family member) so selling our house is not an option. Also, our mortgage payments are only $500 a month. We would not be able to find less expensive housing anywhere.
Lawyer suggested ch 13. However, our home is worth too much (we paid $305,000 2 years ago). He wants to claim its only worth $275,000 so we can file. Homes in our neighborhood are going from $240K to $370k. Will the trustee check the actual value of our home or take our word for it that it's worth less?
Here are my questions:
1. Can we keep our debit cards from our checking account?
2. Our lawyer mentioned they take your tax returns. Does this count toward the overall debt we owe or is it just a bonus payment?
3. Are we allowed to save money or do they take it from our checking account?
4. I sell things on ebay. Its not reported on our income tax but does show up on our bank statements. It's completely irregular. Can they take that income?
5. Part of the reason we have so much debt is because I started a business this year entirely funded by CC. The business is doing okay but not yet turning a profit. When (if) it does, will they start taking extra money since I could be adding income?
Basically my main concern is that they will take every extra cent we bring in. We have no disposable income. All the money we make goes straight to paying bills. My husband's income is not fixed. He's a mechanic and only get's paid when jobs come in. No work = no pay. There is no base salary. I'm just worried we can't buy clothes for our kids.
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