Dependents in BK case and cash

[hanta]

I am filling for BK next month, and below is my situation:

Total Debt 130K
5 Depenedents
Spouse does not work, will file jointly
Own 2 Cars Book value 3K and 9K
Own a Home with Appraisal value of 180K, first Mortgage 160K and 2nd Mortgage 45K.
Cash in Bank of 9K
Stocks Value 8K
Monthly Income $6,400

Whats are my exemptions and will they trustee be running after any of these assets? Any info will help. Does dependent scount in this case?

Thanks

[TEW]

your exemptions depend on where you live.
household size only only applies too living expenses and not assets.

[indy]

I live in cali so the exemptions here are high, 21200,

I would be concerned about your cars, cash and stocks.

that is over 20000 easy, and I think CALI has one of the highest exemptions amounts.

Use that cash to pay a living expense, utility bills for a year ect..

the stocks you better hope that they dont go up in value to much or you will lose that too,

Better to move that money in the stock account to a ROTH IRA. I say ROTH because you can withdraw the funds after your bk with no penalites, you cannot do that with traditional IRA. You are three months out so they might ? it but you can always try.

G.L.

[lrprn]

Whats are my exemptions and will they trustee be running after any of these assets?

Hanta, you need to tell us which state you live in. Without knowing that first, we can't tell you anything about what you are going to be able to protect with your state's bk exemptions when you file.

[hanta]

I live in Georgia.

[Florida30]

Indy,

You said move stocks to Roth IRA. Will that raise questions? I have stocks worth about 6k....the market goes up at the worst time and its been increasing daily. In one consult, the lawyer said sale it all and deplete the account. If I sale and move it into a roth, will the trustee question?

[Naomi]

Here is one link to GA exemptions:

http://www.thebankruptcysite.org/exemptions/georgia.html

And for the means test:

http://www.legalconsumer.com/bankruptcy/means-test/state.php?st=GA

[indy]

Indy,

You said move stocks to Roth IRA. Will that raise questions? I have stocks worth about 6k....the market goes up at the worst time and its been increasing daily. In one consult, the lawyer said sale it all and deplete the account. If I sale and move it into a roth, will the trustee question?

It may and may not.

the secret is not to do anything drastic at one time that will raise flags,

If you are going to file next month and move the money right before you file then yes it will raise flags,

But if you have some time on your hands then you slowly move it a little at a time.

the trick is to show patterns.

Even if you deplete the account as your laywer suggests, then you may still need to show where the money went to. Another words if you are going to file next month and still have that money in the stock account then you really dont have a lot of options,

if that is the case then you could use it to pay the lawyer, or pay some bills ahead of time, utilities, ect..

most people dont realize that Filing B/K is a process that you really to think about in order to be successful. Look at TRUMP classic example.

PRE PLANNING BK is the most important thing you can do.

If you just wake up one morning and say aww heck i am going to do a BK and go to the lawyer that day and file then you are going to be in a mess.

Hope this helps.

[Florida30]

Oh this site really does help.

I am meeting with another attorney today and get her take on it.

But the first attorney told me that (and I asked her specifically would it raise a flag if I deplete it) to pay bills and other stuff like her fee from it. Then no red flag.

But I do plan on filing either mid to late May or beginning of June. So maybe a roth ira would be a good idea for me.

I can deplete it in two months for attorney fee and mortgage payments if I want to. I really dont want to sell the stock cus it would be selling at a loss and these holdings are bound to increase in the next 5yrs or so.

[indy]

The only way you can keep that stock is put it in your exemptions if you have the room.

Bit all in all even 2 months I would say is too short.

Selling at a loss, really at this point should not be your concern, if you dont exempt that money the trustee will take it no matter what, then you are SOL.

Remember you are filing for BK a chapter 7 is total liquidation, if 2 months is your horizon I think you might be able to get by with using the money to pay your laywer, pay some bills such as dental ect.. Stock up on food and supplies, not perishable stuff, heck buy enough toliet paper to last you for years

Costo is a great place to go to spend your money.

Either way if you only have 2 months left then if you dont spend that money the trustee will

and they wont use it for toilet paper

selling for a loss you can always write that loss of on your taxes, (up to 3k)

good luck

Indy