Please help I have a few questions about ch.7 or ch. 13

[leo_075]

My husband and I are seriously considering bankruptcy. I filed solely in California almost 8 years ago from a very messy divorce in which he left me literally everthing and moved away. Because of a failing at home business I tried and having to live off credit cards for about 3-4 months and just spending over our means to live (we also have 2 children) it has put us in debt. We are using our cash from work to pay bills and buying food and gas with credit cards. It's piling up and so far not late on payments, but seeing it get worse each month.

We have a Toyota 4 runner that is in good shape and runs well and is paid off, but we are concerned that it will be taken from us by creditor or in court. We also have a barely running Nissan, but they can have it. We are trying to sell our house right now so that we don't have a foreclosure as well. Can they take your vehicle from you when it's already paid off?

Also, how is trying to rent? Have any of you ran into problems renting after you filed?

Lastly, my husband is a retail manager and concerned that having a bankruptcy on his record would hinder him from future offers with the financial risk involved with being a manager. I have heard that most companies will find a reason not to hire you if you have a bankruptcy.

Thanks for any help you can provide,

AD

[leo_075]

One more thing to add is that how long after you have put a large amount on a credit card do you have to wait to file that in BK? I have to have an outpatient procedure done and we have no medical coverage through either of our work and it could cost up to 3500.00.
Thanks,
AD

[familyof7]

90 days from last cash advance or large purchase. what year is the 4 runner? If it is not worth more than is allowed you can exempt it and keep it. You can not sale your house after you file until you are discharged. You should not file too soon after you sale your house if you make a profit.

[leo_075]

thanks for the reply. If we do make a profit it will not be more than a couple thousand that will go to bills. The market here is really bad and we have lowered it to just enogh to pay off the mortgage and pay the agent and have a little left over to pay some cards down.

[familyof7]

I would not pay any cards down if you intend to file bk i would just use the money to move and pay deposits and such maybe buy school supplies and clothes for the kids. That type of thing because if you pay one creditor and not the other and then file bk they look at it as prefrential treatment and they could make that creditor pay the trustee the money or something like that

[lrprn]

Welcome to BK Forum, leo - glad you found us.

Unfortunately the new 2005 bankruptcy law doesn't allow you to file Ch 7 again for eight years after your last filing date. You may have to wait another year before you can file Ch 7 again. However, depending on your circumstances, you could file Ch 13 now - that depends on how you and your husband come out on the required Means Test. (Ch 7 and Ch 13 have both changed a great deal since you last filed )

It will help us help you better if you can share a little more information about your situation.

Are you still living in California or do you now live in another state?
Do you plan to file jointly with your husband?
If you look back the last six months, how much total income did your family make?
How many adults and children are living in your home now?

Once we know what state you are in, we can help you figure out if your car is safe. We can also help sort out what could happen to your house if you can't sell it.

how is trying to rent? Have any of you ran into problems renting after you filed?

Most of our members have found places to rent after filing when they went to the smaller, more family-owned rentals. The big complexes do tend to turn away bk filers until the filer proves they are paying their debts again on time.

I have heard that most companies will find a reason not to hire you if you have a bankruptcy.

I think "most" is an exaggeration. Unless the job requires handling money or a high level of security clearance, the vast majority of our members here have not experienced being turned down for promotions or getting new jobs just because they filed bankruptcy.

Keep asking questions - that's why we're here. Again, welcome!

[leo_075]

Are you still living in California or do you now live in another state?
Do you plan to file jointly with your husband?
If you look back the last six months, how much total income did your family make?
How many adults and children are living in your home now?

Hi, and thanks. To answer the above questions, we currently live in Idaho and will be filing jointly (if we are pressed to do so. In the last 6 months we haven't made much because my company went under. I was an independent contractor and am currently working very part time (not by choice) - we have made probably made about 13,500 in the last 6 months maybe a little less with 2 children. We have been living off credit cards a lot . Kelly Blue Book says that our 4-Runner is worth about 5k which I believe in Idaho you can only keep one that is 3k or under, but the other car we have barely runs. I don't know how else we would get around if they took the 4 runner.
Thanks for all of your help!

[leo_075]

Oh one more question...how long after you file can you move out of the state that you file in? We were thinking if we file moving in with family for about 6 mos to get back on our feet again.

Thanks,
AD

[familyof7]

if you file joint your exemption for the vehicle doubles

[familyof7]

for example we have 2 vehicles our state allows 3500 solo and 7000 joint one vehicle may be 4000 and the other 3000 but total 7000 so you can still get by

[leo_075]

That is really good to know...thank you!

[lrprn]

That is really good to know...thank you!

Hang on.....I hate to be the bringer of possible bad news here...but Idaho doesn't allow you to double your $50,000 homestead exemption when you file jointly with a spouse, so Idaho probably doesn't allow you to double your $3000 auto exemption either - see http://www.bankruptcyinformation.com/ID_exemp.htm

There's quite a variation in exemptions from state to state and whether they can be doubled or not. Familyof7 is fortunate to live in a state where some exemptions can be doubled when filing jointly, however Idaho doesn't appear to be one of those states.

When you interview 3-4 experienced bankruptcy lawyers in your area (most give free initial consultation appointments), put this question on your list to ask. It's the best way to get reliable information for filing in your area of Idaho.

[familyof7]

What is the federal exemption? Because I know you can go state or federal but not both. I may be wrong though so that is why I agree it is best to consult with 3 or 4 attorneys.

[lrprn]

What is the federal exemption? Because I know you can go state or federal but not both.

Only 15 states allow debtors to use the federal exemptions rather than their state's exemptions - see http://www.bankruptcyinformation.com/fed.htm . Unfortunately for Leo, Idaho is not one of them.

[CindyLou]

use edmunds.com and "apraise" your vehicle. put in your mileage, etc. check "fair" condition then average the retail and trade in value. that will give you a good price. THEN bring the vehicle to your local mechanic and have them do a all over check up and FULL estimate on what it would cost to get it in tip top shape. You can then bring that sheet in with you to the 341 and be able to subtract that from the value of the vehicle.