Hi all -- this is my first posting here, though I've been reading your posts for some time now. This is a great site!
My husband and I first visited a lawyer re Chapter 7 bk in February 2006. Under the advice of the lawyer, we stopped making payments on our unsecured debt at that time (all credit cards). Then, due to illness in our family, I only worked part of the year last year, and we had to put the bk on hold as I had to be out of town for 4 months to help nurse my dad. Now, I'm home, and we're working on the paperwork.
We make below the median income for a family of 3, so that's no problem. Our lawyers told us to file our 2006 income taxes before we file Chapter 7, and I just got our taxes completed yesterday. Before I send our paperwork off to the BK attorneys, I have a couple of questions:
1. We have tax refunds coming, totaling around $1800 from Federal and State, which I understand we'll have to turn over to the Trustee. This may be a dumb question, but here goes: When I efile, should I request the refunds in the form of checks (rather than having them deposited to our checking account)? Our lawyers told us to keep our bank balances as low as possible.
2. My husband received a profit sharing bonus early this month, about $1000. Since our case probably won't be filed till mid-April, are we okay to spend this money on ordinary living expenses? All three of us need vision care, for which we have no insurance, and this money would about cover it (along with the $300 filing fee for the bk). But we don't want to spend it if the trustee will ask for it when we have the 341 hearing.
3. We have 2 cars, both paid for. Both cars are 1999, with one at 73,000 miles and the other at 89,000 miles. How do I determine the 'allowable' value of these cars as far as the bk goes? We have 3 drivers here, and Indiana only allows 'wild card' exemptions of $8000 for a married couple, not including our primary residence. Although one of our cars has a serious oil leak, it runs, and I'd hate for the 3 of us to be down to 1 car between us.
4. We have two loans on my husband's 401K, and the payments amount to about $150 per month, which comes out of his paychecks. I checked the paperwork on these loans, and they are named as 'secured debts' in that if we default, the interest due through the end of the loans will be deducted from our 401K. Will the trustee consider these payments an allowable monthly expense?
Any advice you can offer will be GREATLY appreciated! I will be so glad when this is all over . . . so I can sleep through the night again. Anyhow, thanks!
Jenny
My husband and I first visited a lawyer re Chapter 7 bk in February 2006. Under the advice of the lawyer, we stopped making payments on our unsecured debt at that time (all credit cards). Then, due to illness in our family, I only worked part of the year last year, and we had to put the bk on hold as I had to be out of town for 4 months to help nurse my dad. Now, I'm home, and we're working on the paperwork.
We make below the median income for a family of 3, so that's no problem. Our lawyers told us to file our 2006 income taxes before we file Chapter 7, and I just got our taxes completed yesterday. Before I send our paperwork off to the BK attorneys, I have a couple of questions:
1. We have tax refunds coming, totaling around $1800 from Federal and State, which I understand we'll have to turn over to the Trustee. This may be a dumb question, but here goes: When I efile, should I request the refunds in the form of checks (rather than having them deposited to our checking account)? Our lawyers told us to keep our bank balances as low as possible.
2. My husband received a profit sharing bonus early this month, about $1000. Since our case probably won't be filed till mid-April, are we okay to spend this money on ordinary living expenses? All three of us need vision care, for which we have no insurance, and this money would about cover it (along with the $300 filing fee for the bk). But we don't want to spend it if the trustee will ask for it when we have the 341 hearing.
3. We have 2 cars, both paid for. Both cars are 1999, with one at 73,000 miles and the other at 89,000 miles. How do I determine the 'allowable' value of these cars as far as the bk goes? We have 3 drivers here, and Indiana only allows 'wild card' exemptions of $8000 for a married couple, not including our primary residence. Although one of our cars has a serious oil leak, it runs, and I'd hate for the 3 of us to be down to 1 car between us.
4. We have two loans on my husband's 401K, and the payments amount to about $150 per month, which comes out of his paychecks. I checked the paperwork on these loans, and they are named as 'secured debts' in that if we default, the interest due through the end of the loans will be deducted from our 401K. Will the trustee consider these payments an allowable monthly expense?
Any advice you can offer will be GREATLY appreciated! I will be so glad when this is all over . . . so I can sleep through the night again. Anyhow, thanks!
Jenny
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