Considering Bankruptcy

[JJH77]

Hi,

Hoping I can get some insight here on chapter 7 in New Jersey.

After fighting so so long my husband has given the green light on bankruptcy. Due to illness starting 3 years ago and a car accident we fell behind on things and it snowballed.

We live in NJ, approximately 30k a combo of cc, personal loan and medical bills. We don't own, we rent. Our take home is roughly 4K per monthly and barely living paycheck to paycheck.

Do we qualify for chapter 7? We had a bad accident in Jan this year and our car was totaled. So we had to get another which is financed and the payments are current - never late. We only have one car now since we junked my husbands car bc the repairs were more than the worth of the car. I've been quoted $2500? Does this sound right? How long does this take bc I received an advertisement in the mail from an attorney stating a judge has been filed against me. I'm worried sick and want to get things started.

Any suggestions, heads up appreciated

Thank you!

[Geeznowwhat]

To determine if you are eligible for chapter 7 Bk you need to look at all your sources of income. Is your income above the median for NJ? If so, run th e full budget through the calculator to determine if you are eligible after reducing your income by allowable expenses.

I suggest you go talk to a bk lawyer. They will ask you these questions, and give you a rough idea if you will qualify.

Go talk to several lawyers, You do not have to hire them, but you will learn a great deal

Look at your assets. How much equity do you have in that car? Other possessions? What exemptions will NJ give you for them? Enough to save them?

Look up nolo press. A lot of info is avail ale on the web through nolo. Go read up and see what you think.

[JJH77]

I've confirmed our sources of income falls below NJ median income. We meet with a BK attorney this afternoon. We don't own, we rent. Have one car we financed in Jan after having a car accident that our car was totaled in. We were 3 months away from owning it. I've been looking around and feel okay about it, my only concern is my car. I'm up to date on payments, never late. I hope the judge allows us to keep it. I'm a nervous wreck and really embarrassed about having to file. My only issue outside of the car is I have a personal suit for the car accident. I tore some ligaments and scheduled for surgery in a few weeks. In speaking with the attorney briefly he said this may hold up the case but don't stress too much over it.

[LadyInTheRed]

In New Jersey, you can choose to use federal exemptions which include a $3,675 vehicle exemption and, since you don't own your home, you can use $11,500 homestead exemption on any property plus another $1,225 wildcard. Hopefully, those will cover the equity in your car.

I suggest you wait until you put all forseeable medical expenses behind you before filing BK to make sure you don't end up back in debt right away.

[JJH77]

Thank you! I hope you have all answers to my questions after my meeting with attorney this afternoon.

It's pretty close. I have a 2013 Santa Fe sport. It's not a luxury car but nice enough to be comfortable in while going to and from work and other errands. The other medical expenses should be covered by my auto insurance. This has been a very overwhelming and stressful experience, so anxious to get this done. Thank you for your responses! It's appreciated

[JJH77]

Hi, saw the attorney, said I fall under chapter 7. I plan to wait until I have my scheduled surgery just in case I have medical bills, they can be included in bk. Also said there's no need to waste money in paying cc and loan bills since we plan to file in 60 days. Quoted $1200.

[LadyInTheRed]

Make sure your attorney knows about any insurance proceeds you are entitled to or have received and not yet spent on medical care. They need to be listed as assets and exempted if possible. That may be another reason to delay filing. Here's what I found about federal exemptions that I assume would cover the insurance proceeds.

Exemptions on Recovery Received Due to Injury

• $22,975 for personal injury except pain and suffering or pecuniary loss
• award for loss of future earnings needed for support
• recovery for wrongful death of person you were a dependent of needed for support, and
• compensation received for being a crime victim.

Yes, paying dischargeable debt is throwing money away if you have decided you will definitely file.

$1200 is reasonable.

[JJH77]

Thank you so much for responding! I will definitely ask my attorney. As of late the calls have begun and making me nuts. I feel guilty and overwhelmed. May I ask if it makes sense for me to tell the debt collector that I'm filing bk?

[LadyInTheRed]

I would not tell the collector you are going to file BK unless you are going to file very soon. Just tell them you can't pay right now and ask that all further communications be in writing. Or don't answer their calls.

[JJH77]

Thank you for the suggestions as this process is so stressful. Unfortunately I'm not filing soon enough. I plan to file within the next 60 days days. my attorney has suggested that I wait until after I have surgery.