Non Exempt Property Questions

[eltaur2000]

Is non exempt properly simply used to calculate weather a creditor can get more for liquidating on chapter 7?

Does the value of your non exempt property impact your dmi or payment?

My example

DMI 600 for 60 months = $36,000

Watch $5000 (Wild Card $2000) $3000 Equity
Car $7000 (Car Exemption $1500) $5500 Equity

36k>8k So Chapter 13 is better for my creditors.

House under water $10k.

The rest of my stuff is appliances and furniture that I owe to Best Buy and The Room Place. Planning on paying this %100 so I can keep them.

[LadyInTheRed]

When you say "equity", I assume you mean that is the non-exempt value, not that you have loans on the watch and car.

It looks like you have $8,500 in non exempt assets. So, your unsecured creditors must get paid at least $8,500 in your plan. This is called the Chapter 7 liquidation test. Your Chap 13 plan must pay to unsecured creditors at least what they would get if your non-exempt assets were liquidated in a Chap 7.

Are you really in Illionois? If so, I think you may be looking at old exemptions. The following site tends to be kept pretty up to date: http://www.legalconsumer.com/bankrup...hp?ST=IL#other

Are you sure you don't need your wildcard exemption for things other than the watch? You need to list all of your assets on your petition. Do you have a TV, computer, stereo, other electronics, dishes, tools, sports equipment or appliances and furniture that isn't security for a loan? I don't see any IL exemptions other than the wild card that can cover these things.

[eltaur2000]

All my stuff is owed. I think I have a drill and some Ikea dishes. Lol I'm a bachelor. Do I have to list clothes? All my money was spent on travel and clothes.

[AZNoName]

Haha speaking of clothes, my atty just told me a story of a debtor walking into a 341 meeting with an outrageously expensive purse. She didnt even get the chance to sit down before the trustee went over to her and asked "is that purse real?". Hope she claimed it!

common sense = don't wear your 40K watch and 12K purse to the 341 meeting

[LadyInTheRed]

All my stuff is owed. I think I have a drill and some Ikea dishes. Lol I'm a bachelor. Do I have to list clothes? All my money was spent on travel and clothes.

When you say "owed" do you mean that it is security for a loan?

You have to list your clothes, but IL has an unlimited exemption for clothes (see the link I posted above). You have to list the drill and Ikea dishes and exempt them using your wild card. They may not be worth much, but they need to be listed as assets, even if they are just grouped in a category called "miscellaneous household goods". Your attorney will know what to itemize and what to group.

[momofthree]

Note that you UN-secured creditors must get the non-exempt value, so if some of that DMI is going to go towards a car payment, attorney costs, etc. then none of that counts toward the liquidation value test. Let's assume that you're correct in that you have $8500 in non-exempt assets, that would mean that your unsecured creditors would have to get at least $8500 (141.67/mo) over the life of your plan.

[lillymarlene]

I don't know about Illinois, but last year when I filed, I was encouraged to use sites like Craigslist and eBay to help me put a value on some of my items. Used furniture, watches, clothing, jewelry and electronics often sell for considerably less than when they were new.

If possible, if you haven't done so already, you might consider pricing your items at these "yardsale" type prices.