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How I came to bankruptcy

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    How I came to bankruptcy

    I've been reading this forum for weeks and have learned many new things - thank you.

    To start off, I have $38,000 unsecured debt because of my kindness and stupidity - namely a girl that I thought loved me, but she only loved my money and now she is gone (MY BIGGEST AND WORST MISTAKE EVER). I also loaned money to my cousin (who has never paid me back, it's been almost two years....just keep getting promises, so if the trustee goes after him, I'm alright with it) and my friend. My friend was paying on time and ran into trouble a few months ago and when he stopped paying me, I was unable to make my monthly payments. Now to top it off, my hours at work have been cut, almost by half (just was notified yesterday). So, if I am forced into a Chapter 13, I don't know if I could afford the payments as my weekly hours have been drastically cut.

    Here are my stats:

    $38,0000 unsecured debt

    Cards last active: 10/1/08 and 10/20/08

    Last cash advance: 6/08

    Filed BK7: 12/7/08

    State: New York

    I am listed on my parent's house as co-owner (my dad and I) and the real property consists of 4 lots:

    - The house
    - Garage across the street
    - Vacant lot next to house
    - Lot along the creek

    Total Full Market Value with 50% interest (my half interest in the property) is $34,000. NY homestead is $50,000 but I am still concerned that the vacant lot and creek lot are up for grabs - but I wonder if the garage is too? The garage lot is part of the house number (you know, 1132 Main St), but the other two lots have separate numbers. The two vacant lots have a Full Market Value of $4935 but with today's economic trends, I don't believe they would sell for that.

    I don't own a car and don't really have any other property except my cats and dogs plus my laptop computer that is 3 years old and my clothes.

    The money owed to me by my friend and cousin are listed as personal property on Schedule B under #18 Other Liquidated debts owed to debtor. So I am assuming the Trustee will go after them for recovery.

    On the day of filling out the petition with my lawyer, I had $100 (listed on my petition) and on the day of filing my petition I had $244 and today, I have $124 in my bank account. So, I guess I am okay with the cash exemption (NY $2500). I also have an IRA account worth less than $100.

    When I was filing my petition with the lawyer, I found it bizarre that I had to list my parent’s income as well as my own (I guess it's federal law to include EVERYONE in the household) - besides; we were below the median income for a family of 3.

    I checked my PACER summary and state the following flags: MEANSNO, REALPROP

    I'm nervous about losing any of the real property, as I don't consider it mine, as I never paid any money for the home. It was just transferred from my mom and dad to me and my dad in February 2007 to protect me if my dad passes. My mom is very ill and a lot of my time is spent taking care of her and her passing is just a matter of time (she is a brittle diabetic, has lupus, heart disease, herniated discs).

    Do I have ALOT to panic about? I think the answer is YES!

    I know I have made mistakes and I am ashamed of those mistakes, but am trying to take responsibility for those mistakes.
    Last edited by BKUniverse; 01-23-2009, 02:17 PM.

    #2
    Okay does the house have your mother's name on it as well? If she's still on it then your value is 1/3 not 1/2.

    Is there a mortgage on the home?

    You're lawyer was correct in including their incomes. It is indeed all people living at the same address (apartment, home, etc) regardless of their relationship to one another.

    Now what may happen is the Trustee could offer you a chance to redeem the property you can't exempt such as the vacant lot and creek lot. The garage if its the same physical address is probably part of the home. Is it part of the same land deed? Also are the other lots in their name as well. That would mean of course your interest in it would be less than total value.

    We all make some mistakes, the most common is living on the very edge of our income and when it falls due to illness, economic downturn or other we find ourselves in trouble. Try not to give up.
    May 31st, 2007: Petition Filed by my lawyer
    July 2nd, 2007: 341 Meeting Held
    September 4th, 2007: Discharged and Closed.

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