The wolves are at the door and the vultures right behind...

[halelani]

I've just gotten the papers from the attorney and took the little credit class. I will be unable to make any payments to the trustee. I have about 400K in equity in my home, 75K in unsecured debt. I wanted to file a Chapter 13, but I guess you have to have money to do that. Of course they will sell ALL my assets and they will sell it and make money off of it 'cause it will be auctioned just to cover the debt, if that. I'm 55 going on 100. I'd get another job (still trying), but we know how that's going. I'm trying to sell the house, but we know how that's going now days...I'm just pondering where and how I'm going to live? Someone told me the other day, "I've met people going from rags to riches, but never met anyone going from riches to rags", ah thanks! I am living proof two accidents (not my fault) and one hospitalization later, that no one is out of reach from the grip of poverty. Thanks for listening to me whine.

[TEW]

Don't feel so bad I went from riches to rags And believe me I know there are no jobs for 50 plus.

[Iamtoobroke]

Me too! Also 50-plus and severely underemployed.

[DebtEnder]

. Of course they will sell ALL my assets and they will sell it and make money off of it 'cause it will be auctioned just to cover the debt, if that.

You will still have assets even if your state does not have a high enough exemption, or perhaps unlimited in your case to fully protect the home, part of the value will still be yours after the sell. Many other things that you may consider valuable will probably not be of any concern to a panel trustee or be exempted if of higher value so you will still have those.

Bankruptcy does not reduce you to a cardboard box, even in the most restrictive of states, which does vary wildly. Perhaps a different viewpoint may give you some clarity, not all attorneys know what they should.

If you tell us what state you have lived in for the past 2 years I can give perhaps a better idea of what you could come out of bk7 with.

[Bankruptcy20]

"they will sell ALL my assets"...

I am curious if anyone here on the forums have experienced any sort of forced auction by the trustee to raise money... if you are honest in your filings, all I could see them doing is liquidating your non-exempt assets...

Do they raid your home/apartment and seize your underwear and socks and sell them for pennies? I really doubt it. Would they seize your disclosed money market account? Yes. Would they go on a witch-hunt to find such a money market account, if you did not properly disclose it, and they thought it existed? I would think so.

Anyone think differently?

[fltoo]

Can you get a home equity line in place?

Then, default on the cc's and start negotiating settlements with them. They will get to 15-25 cents on the dollar and use the home equity to pay them.

That is cheaper than having your house sell for bottom dollar now just to pay the debt.

What state and what is the exemption for your house?

[halelani]

Thanking all of you for your input...

In spite of all this madness you have put a smile on my face with your generous support...I live in Oregon (Or Be Gone)...I have tried everything, and now my workplace is being shaken down by this global economy. Gee, I would like to know that someone needful would benefit from all this equity in this house, (400K) someone will get it, but only the people at the court house (most likely bankers). And if I don't have a house put all this stuff in, well that's where the vultures come in, they'll strip it bare. It's incredibly stressful and we are all in it together, Blah.

[GWBcasualty]

In spite of all this madness you have put a smile on my face with your generous support...I live in Oregon (Or Be Gone)...I have tried everything, and now my workplace is being shaken down by this global economy. Gee, I would like to know that someone needful would benefit from all this equity in this house, (400K) someone will get it, but only the people at the court house (most likely bankers). And if I don't have a house put all this stuff in, well that's where the vultures come in, they'll strip it bare. It's incredibly stressful and we are all in it together, Blah.

If you have 400k equity on the house, why can't you sell it for (say) 100k less... get 300k out, pay your creditors and go on with your life?? Heck, even If you get 200k less is still worth doing it.

If the house will not sell even at a steep discount, well... maybe you DON'T have equity???

[DebtEnder]

Here is a link I found for exemptions in your state.

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

If you are filing by yourself if the house is taken you will get back 30,000 dollars. If you have a spouse filing with you that goes up to 39,500. Other exemptions for things like cars and other household stuff is comparable to most other states. To wit 2,150 for a car and 3,000 for stuff in the house. Regarding the house stuff don't think just because you bought a living room set for 5k a few years ago it's still worth ANYWHERE near that now. Keep that idea in mind when thinking about what stuff is worth.

Regarding that how do you know you have 400k in equity in your house? Have you had a licensed or certified appraiser do an appraisal on your home to determine the true market value? Do you still have a mortgage on the home? Most people, especially in the higher value housing market have seen loss of value approaching and even exceeding 50% While not good for resale it's great for bankruptcy protection

Also just because something can't be protected does not mean it will be taken. There is overhead cost involved in liquidating assets and unless there is ALOT of value it's just not worth the hassle for the TT. In the end if the house is taken you will still get AT least 30,000 dollars out of it, plenty of cash for a deposit on a new place.

[DebtEnder]

If you have 400k equity on the house, why can't you sell it for (say) 100k less... get 300k out, pay your creditors and go on with your life?? Heck, even If you get 200k less is still worth doing it.

If the house will not sell even at a steep discount, well... maybe you DON'T have equity???

I second this thought as well and reinforced my statement I posted just a few minutes ago. If the house is a family heirloom of some sort then last thing I would want is to have some investor buy it for dirt cheap just to resale it again.

You said you only have 75k in unsecured debt and with the supposed equity in the house if you were to sell for even half of what you have in it you still come out over 100k in cash. I guess the question is why are you willing to risk a dirty legal invasion of your life over 75k and destroy whats left of any credit you have when the end result could loss of the house either way.

[halelani]

House woes

The house is worth a firm 500K, appraisal done was conservative at 597K, 6 mos ago. I have 85K mtg. Tax RMV is 666K (what's wrong with that number)? I have it listed for $350, this is a very slow market here in Oregon. Well at this point I'd be happy with 30K! Gee I'd be rich!

[StartingOver08]

Yes, before you decide to file - check out the property's true fair market value. Based on the information provided, you would have plenty to pay all your creditors plus a lot of cash remaining to purchase another home. You would certainly have more than the exemptions allowed in Bk.

[DebtEnder]

The house is worth a firm 500K, appraisal done was conservative at 597K, 6 mos ago. I have 85K mtg. Tax RMV is 666K (what's wrong with that number)? I have it listed for $350, this is a very slow market here in Oregon. Well at this point I'd be happy with 30K! Gee I'd be rich!

If you had the home listed at 350K for more then 90 days and did not sell then the home is not worth 350k in the trustee's, or a banks eyes. I am not an appraiser but I have worked for one and my best friend is a certified residential that does REO property. A home is worth only what someone will pay for it and right now people can buy houses for 25-35% of what the bank had a loan for. The trustee will not be interested in taking the house and waiting 6+ months or more to sell, he wants cash FAST anything else is not worth his time.

[StartingOver08]

So if you continued to drop the price until you got activity - you would still certainly make more than in a BK.

BTW, activity to me is a sale - looky loos don't count. Even in slow markets, houses sell. Just not as many. Look at the closed sales within 90 days comparable to yours to determine a more accurate price.