Filling Today-Have a quesiton???

[dp1969]

Hello! New to this forum and filing Chapter 7 today. Most questions have been answered through the lawyer but one remains. First, here's our situation...
DEBTS-$60k in consumer credit cards, $200k on HELOC, $423k on 1st mortgage. Value of home is not worth selling (live in Nor Cal) and cannot afford the mortgage and HELOC ($4700/mo).
We have a 2005 Tahoe worth $20k (with a loan balance remaining $8,600). A 1996 P/U (blown tranny) worth $3,000. A 2001 Mastercraft (hull and steering damage from 6 months ago) worth $7,000 (selling it damaged). It's currently sitting in a boat shop and can't afford to fix it.
We have no other assets and what we do have, is small compared to our debt. Had a reduction in income and have been struggling to make ends meet. Lived off of credit cards and the HELOC and after reviewing this, our lawyer recommended Ch.7.
The lawyer stated that we are able to keep (in California) $25,000 worth of "non-exempt" property and with the values of our 2 vehicles and the boat, it comes to about $ 21,000.
Being that we are filling Ch.7 and surrendering our home, do you think the trustee will want to sell our 1996 P/U and the boat?

[krielly]

Sounds like you have the p/u and the boat exempted.......
Therefore, the trustee would not be able to take them.

[dp1969]

After reading up on Chapter 7, non-exempt property and the wildcard exemption...I'm confused.

I keep thinking that the lawyer is wrong about the amount we have exempted. Has anyone (in California) been through this. I read about people having to sell there cars because the value (even after loans) are still too high. Why am I getting a sick feeling that my lawyer might be mistaken? He's been in business a long time and has filed several BK cases so I figured he would be right...that's what he's paid for. He will be attending our 341 with us so I believe he can speak up on this matter. It sounds selfish but we are surrendering our home, credit is tarnished and have virtually no assets in our home. Our SUV is the only vehicle that with fit both kids (the old p/u has extended cab) and our boat is sitting in a repair shop, the repair work has been halted to it and it's going to cost $3500 to get it out (we don't have). We spent the insurance check to live...poor judgement on our part. Seems it would cost the trustee more to get the boat out than just the damaged value of $7,000.

Anyone have more incite into the $25k our lawyer is stating????

[FreshLikeADaisy]

Dp, you should know that California is a "two system" state, where there is more than one set of exemptions a debtor can choose from, according to what is best for him or her. But you can study this yourself; the author of the Nolo Press book on Chapter 7 is from California and practices bankruptcy law there, so there are a lot of side notes specific to California filers. It's a good book to get to help you understand the exemption system (no matter what state you're in) and you don't have to be a lawyer or know anything about bankruptcy to read it. I think it would go a long way toward easing your mind if you understood WHY your atty was giving you that figure, and what system he is basing that on.

Here's the link (Please note, I have no affiliation, I'm just a satisfied customer. )

http://www.nolo.com/product.cfm/ObjectID/F87C0B36-D2FB-4FE2-801B76AD0792C01A/catid/462A9501-9B21-4E09-A08C5A7B8AF51A79/213/161/

Good luck!!!

[dp1969]

Dp, you should know that California is a "two system" state, where there is more than one set of exemptions a debtor can choose from, according to what is best for him or her. But you can study this yourself; the author of the Nolo Press book on Chapter 7 is from California and practices bankruptcy law there, so there are a lot of side notes specific to California filers. It's a good book to get to help you understand the exemption system (no matter what state you're in) and you don't have to be a lawyer or know anything about bankruptcy to read it. I think it would go a long way toward easing your mind if you understood WHY your atty was giving you that figure, and what system he is basing that on.

Here's the link (Please note, I have no affiliation, I'm just a satisfied customer. )

http://www.nolo.com/product.cfm/ObjectID/F87C0B36-D2FB-4FE2-801B76AD0792C01A/catid/462A9501-9B21-4E09-A08C5A7B8AF51A79/213/161/

Good luck!!!

Fresh-

Thanks so much for the information, I figure my attorney should know better than I. I've read about the "system 2" but came up with a $21,430 figure. Oh well, I'll just let it be but with check out the nolo.com. Thanks!!