Not Sure.....

[Michigan42]

Thanks for the info. Yeah, I'm thinking it all over. I've emailed one att & he hasnt gotten back to me. I really want to pay my mother in law back the $1200 I owe her. My mom will understand, or I can pay her back half (1K). So, maybe $2200.00 total. Also, I dont think I should wait until summer, maybe file in March/April. I'll talk to a few atts before I make a decision. I fear if I wait too long theyll try to garnish & I dont want my job getting involved at all. I really want to get the ball rolling & be done with it so we can move on.

[Mi Bankruptcy]

I would try to concentrate on getting your attorney. Everything will fall into place after that. I was current on all my bills in July. I (found) met with the attorney and by the time I had my class taken all my paper work submitted to the attorney I had not filed until Nov. Once you have your attorney and you tell them your filing BK they should leave you alone.

[Michigan42]

Thanks Mi Bank, Im just kinda freakin out over all of this. I know its normal, but just uncomfortable. My wife & I have been discussing it a lot, & we both seem to be adjusting to it. Thanks to everyone on the board for your support. Forums like these are lifesavers. Btw, I just contacted 2 attorneys to meet with hopefully this week. They were both recommended by my cc counseling agency.

[Michigan42]

I have my first appt tomorrow afternoon. Any specific questions I should ask? Between us, I believe I more than qualify for a 7. I went through an online means test & passed as I'm -$667.00 every month & no DI.

[StartingOver08]

If you are a CH 7, do not make those payments to your family before filing.

You will have to state, under oath at your 341, that everything in your petition is true.

You are allowed to pay any debt after discharge on a VOLUNTARY basis. But don't do it before - because then you will be considered an asset case and the Trustee will go after the payments you made to your family to distribute those amounts to creditors.

[Michigan42]

Thanks. Yeah I havent even filed my return yet, still waiting on W2's. No, I wasnt planning on paying them back until I talked to an attorney. Why wouldnt everything in my petition be true? I dont plan on lying. I do plan on presenting the attorney with all of the facts & let them tell me which way to go.

[StartingOver08]

Thanks. Yeah I havent even filed my return yet, still waiting on W2's. No, I wasnt planning on paying them back until I talked to an attorney. Why wouldnt everything in my petition be true? I dont plan on lying. I do plan on presenting the attorney with all of the facts & let them tell me which way to go.

I did not mean to insinuate that you would be lying....I meant to say that is when they find out about the preferencial payments. It is on your petition.

[fltoo]

What SO means is that IF you pay an insider (mom, mil) monies owed in the year before filing, you will need to disclose it. They ask if you have paid any insider any monies in the year before filing. A no-no, because as a preferential payment, the trustee can avoid the transaction and go after them for the money.

So, you should not lie under oath and say no. Pay them after closing.

[Michigan42]

Yeah, I got that part. That was made clear earlier, but appreciate the advice. I'm not going to spend any of it until I talk to an attorney.

Whats irking me is my income began to slide in 2005. In 04' 50k, 05' 42k, 06' 40k, 07' 44 & 08' it jumped to 55K! However, the previous 3 years is what got me into the situation I'm in. I hope the atty can illustrate this point even though I did pretty good last year? I know they go on the previous 6 mos, but that doesnt illustrate why I need a BK now.

[Michigan42]

I talked to an attorney last week & she set my mind at ease with everything. I was prepared because of the nice people on this board & asked a million questions. I'm going to file a 13 next month. Meanwhile, I'm scrambling to find another car as mine is old & lots of miles & broke down on me over the weekend. She advised me not to pay any of the cc bills, personal loan & both mort payments. She wants to strip the 2nd off because my home is basically worth 118k & I owe 168k (1st 130k & 38k 2nd). She also told me to go ahead & file my taxes, get my refund, & pay back my mom & in laws if I want & change my tax exemption at work from 0 to 1. I guess the trustee gets all of your returns for the next 3 - 5 years.

[Mi Bankruptcy]

If you intentionally finance a car know you are going to file bankruptcy shortly after you finance it. I think that might be considered fraud? I am not sure because I am Ch7. Any chapter 13 people?

MI42. How many attorneys did you meet with? We sound like we are in a similar situation and we filed 7. What forced you to CH13?

[Michigan42]

I talked to 2 that were referred by my cc agency & emailed another who wouldnt reply after a few exchanges. I decided on the one because of demeanor, knowledge, case load (90% bk) & I must admit, proximity to work.
I believe a 13 because of the lien strip & maybe income level? Btw, if you look back in this post youll see that I asked several Q's about getting a car prior to filing, all said go ahead. I purposely asked my atty this & she said no problem. I recall she said something about this state/bk its reasonable to have 2 car payments for 2 working people not to exceed $450.00/payment. I'm staying well below that amount.

[liz417]

Yes, a new or good used car is a must in a ch 13. Good luck!

[Michigan42]

Thanks for the advice. However, it might be a pipedream as no one will touch the loan right now. My mort co, chase & cred union all report late on my credit report. I knew this would prob happen.

[rrockinggramma]

722 Redemption would finance you once you file. But it takes trustee permission then.