So many questions..home/car exemtions, flags..

[Rbs]

First timer poster and viewing for about month. Sooo glad I found this site and it's valuable information! Sorry for any repeat questions and if message is too long.
I'm looking at filing 7 in the coming months. Here's my story $90k cc debt, home +2nd-current, in good neighborhood, no equity, car paid for w/heloc last Aug. worth approx $12. Work is down to PT and I should be in a new job in May. I stopped minimum payments 2 months ago on and pay what I can on the CC's, not near enough to cover the 'new' min pymt, late fees, interest, etc. I should be able to keep the house.
Questions: 1. I thought I read where it makes sense to pay any amount, $20 or so to keep the cc debt going to out of house collections?
2. I plan to sell the car soon, probably for less than value for quick sale and use proceeds to buy car, $3500 exemption for GA and also to do much needed home repairs and for lawyer. Will any raise a flag???
3. I talked to 3 different firms, $1500, $2000, $3000. How to pick a good lawyer??? Do I take to wal-mart version or the Saks version??? One lawyer said the collection co. could put a lien on my house after discharge. Correct???
4. Is it possible to show too little income?? I'm way under the means for GA.
Thanks in advance for any help!!!

[calif]

Do not make partial payments.
If you wish, just tell them you're exploring ways to meet your debts through credit counseling or consolidation or etc.
If a creditor has a lien on your home prior to BK it is not simply removed at discharge. Perhaps, that was what your lawyer was referring to.
You would need to petition the court to have any judgement liens removed.
These are my opinions based on my limited knowledge.
My best to you.

[Rbs]

Thanks! No liens on the house now. Hoping to get this monkey off my back soon to get back on my feet.

[bige1030]

Selling your car for less than value is likely to raise a red flag. It would be considered a fraudulent transfer - but since your intent is to get a cheaper car, and pay for home repairs and a lawyer, it most likely won't result in action against you. What's more likely is that the buyer may be sued by the trustee for the difference between what s/he paid and the value of the car, with the proceeds of that lawsuit going to unsecured creditors. The trustee is more likely to do this if s/he could get a lot of money out of it.

As for liens on the house, it looks like all of your debt is dischargeable, so no new liens can be put on it after discharge. (Of course, your 1st and 2nd mortgage holders have liens on your house already.) If I were you, I'd avoid the lawyer who said the collection co. could put a lien on your house after discharge. Also, IMHO, $3000 is a bit too much for a 7, isn't it?

[SinkingFast]

We sold a truck 6-7 months before filing to pay the IRS for taxes and our attny's/filing fees. The Trustee asked about what we did with the money, but that was it.

We did a quick sale. We took the truck to a local Dodge dealer. They looked it over and we showed them our Extended Warranty paperwork. The guy gave us a price he would pay for the truck but told us to go down the street private lot Dealer. He said they would pay more. He also told us not to show them the Extended Warranty. Sell the truck however we wanted, then bring the Extended Warranty back to them. We could cash out the Extended Warranty for the pro-rated balance that was left. That got us an additional $2200 we hadn't counted on.

If you plan to sell the car and get another, do it sooner rather than later. You definitely want some time to pass between selling the car, spending the money, and filing.

As our attny would say,........... "Take care of your transportation and house issues, and then come see me."

[wrinkleigh]

May want to go ahead and schedule some free consults.

If you know you are going to file, stop throwin money away making minimum payments.

Also -- PM me, what district are you in?? Northern, Middle, etc.

[Rbs]

I know, its a guilt thing to pay some monies to the cc's. Don't want to believe I'm doing this. I've had consulted 3 different firms. Don't know what to ask or look for. Are they're any additional fees an attorney would tack on??

[JollyGG]

Usually the quoted fee is for filling out the petition, filing the case and showing up at the 341. Anything additional will probably be charged additionally for. For example responding to motions, answering alot of questions (though normal questions should be covered), providing additional info to the trustee, adding creditors, amending the petiton, ect.

[SinkingFast]

Usually the quoted fee is for filling out the petition, filing the case and showing up at the 341. Anything additional will probably be charged additionally for. For example responding to motions, answering alot of questions (though normal questions should be covered), providing additional info to the trustee, adding creditors, amending the petiton, ect.

Plus you'll have your $299 filing fee to be paid to the Court, your pre-BK Counseling and Post BK Debtor Education Certs (figure about $50 each there) you'll have to get.