New Guy on the Block.... Have a few ?'s.

[ElAbad]

Hi Guys! This is my first post and glad to be here. Ok, here it goes. I finally paid all of my attorney fees to file CH 13 jointly with my wife, household of 5.

We have been gathering all of our documentation for our attorney (I went with Doan Law Firm here in So Cal, not sure if anyone has had experience with them??) we are having our home appraised for a lien strip this weekend and plan to have all of our items in very soon.

I have not posed this question to my attorney but I recently purchased a car from my brother in law, very cheap $800.00. I needed another car to get to and from work and pick up my kids as my other car broke down and the repairs are much more so I jumped on the deal. I have given him $300.00 and he is accepting payments from me until I pay him in full. No real schedule and we made the deal on a hand shake.

I came to find he purchased the car from one of his dads neighbors but never completed the paperwork to place it under his name. The registration is current and I have placed insurance on it as well. I only owe him $500 so I think I could pay him easily before I submit my first payment to the trustee. From what I read its after 30 days you file, correct? We will be filing at the end of this month, March 31.

How will this affect my filing? Should I let my attorney know about this? What problems if any will I have?

I appreciate any feedback, Thanks!

[justbroke]

Since it reads as if there's not even a lien on the car from your brother, then it's an unsecured debt. If you pay your brother more than $600 within 90 days of filing, the Trustee will want either you to pay it back to the Trustee or the Trustee will go after your brother.

You will also need to exempt the unsecured car for whatever value it is. Luckily, you're in California where exemptions are awesome!

You should always let your attorney know exactly what debt you have, have paid, have stopped paying, are still paying, and all property. You should especially make it a point to tell him about insider payments and deals!

[ElAbad]

Thanks Just Broke! I will take your advise and disclose to my attorney. I will make sure to make less than $600 to my brother in law and work something out with him.

Regarding Exemptions in California, can you point me to any links to read up on those? I want to see how awesome the are

[lrprn]

Regarding Exemptions in California, can you point me to any links to read up on those? I want to see how awesome the are

Here you go - http://www.bankruptcyaction.com/caexemptions.htm

Compared to most states, these bk exemptions (both systems) are indeed generous.

[justbroke]

I forgot. The lookback for insider payments, such as payments to a family member, actually go back more than 90 days. THe Trustee can look back a year.

[momofthree]

If you're planning to enter a ch.13, you really need a more reliable car. Buying a newer car that will last you thru the next 3-5 years would be a good idea. The payment will simply serve to lower your dmi and make your plan payment lower.