A few questions re: Ch 7

[Dizzy]

I've decided to file a Chapter 7. I'm a newbie here and I hope you all don't mind me jumping right in but I have a couple of questions I hope can be answered before I file or definately retain an attorney.

1) I am under a repayment plan at this time with my mortgage company. Will BK affect it the arrangements we have already made if we are doing a straight 7?

2) If I file a 7 before I recieve some money I am expecting in August (about 2K from an inherited deferred comp plan left to me by my father which I plan to use to catch up my mortgage) will I have to disclose it if I don't have my hearing before I recieve the money but after I've actually filed? What if I just sit on the check until after everything is discharged? Will the BK court have a way of knowing about it if I don't deposit it?

3) I have a little money set aside for kids school supplies, clothes, christmas and birthdays. Should I open a savings acct for the kids (both minors) and will the BK court want it if they find out I did that? Also, would it make a difference whether I was listed on the acct as guardian with rights to make withdrawals? The money is actually from a back child support payment I just recieved when the IRS intercepted my ex's refund. I don't think I even have to justify that money, do I? I mean, if I take the money out of my checking that was CS and can show documentation of where it came from, will they exempt it?

[CH33 Paralegal]

1. Most mortgage mods have language that throw the recent mod out the window if you file. Your agreement or your mortgage company can shed some more light on that.

2. You must disclose any interest in wills or estates you may have in the future. If you're scheduled to receive this money soon, you'll want to disclose it, at least to your attorney so they can do what they feel is best regarding that. It's not about when you cash the check either, it's about when somoneone else gives it to you.

3. In return for the relief you seek through this BK, you MUST be willing to fully disclose everything financial that is going on right now. If you choose to withhold that info when you meet with your attorney, that's your choice. If you choose to committ purgury at your 341 hearing, that's your choice. Child support money, documented as so, is perfectly fine. The court wants an explanation first, then will decide what to do. The size of your bank account is more important than why you have it saved. You get a certain amount of wealth you get to exempt in your case and your bank accounts contribute to that wealth. Even if you transfer money now to your kids, it's really going to be viewed as a recent transfer of a store of value to an insider with no money being exchanged.

[music12]

i believe child support is exempt, isn't it? if it is, list it and also exempt it, and they won't touch it.

like ch33 said, any inheritance that you know about must be disclosed. but it doesn't mean it will necessarily be taken away from you; it may be included as part of what is exempted, depending on your state.

when you file your papers, you'll be signing under pains and penalties of perjury. it's not worth it to withhold any information because you'll spend the rest of your life worrying whether someone will find out, put you in jail, and undo the discharge. that's hardly the fresh start you are looking for.

[Dizzy]

How can I find out, before deciding whether or not to file, what the exemptions ARE in my state? I have consulted with four different attorneys and no one is answering any serious questions in their "free consultations". They all want me to file and give them their money first, and I want to be informed of the rules BEFORE I decide whether or not to file for sure.

[music12]

start here:

http://www.thebankruptcysite.org/bankruptcy-exemptions/

first thing to check is whether you have the option of using the federal exemptions in your state. if so, you have a choice. if not, the federal exemptions do not apply and you have to use the state exemptions.

child support is exempt under federal bankruptcy exemptions, and i would be very surprised if any state says otherwise, so i think you are safe. the federal exemption is:

http://www.law.cornell.edu/uscode/11/522.html

look for 522(d)(10)(D) for alimony etc.

[CH33 Paralegal]

well, you must understand that you are asking the attorney to give you a rundown on something that he needed a bar number and a degree to be able to do. It's something that he had to pay lots of money for and very well may still be paying.

I don't think he owes you all the information he knows....he owes you a consultation, which could even be debated since he offers it for free. And the consultation is his perpective about what you should file...not necessarily all that he knows about BK in general. What would stop you from filing pro se if you knew everything he knew?

You may want to try to find a place that doesn't necessarily file BK, but can inform consumers about it. Maybe some sort of pro bono referral service.

I can tell you that Child Support counts on the means test. It counts on the budget. And it should be going to the Child's wellbeing, so it really shouldn't be an issue about how much you get at all, because none of it should be going to any of your expenses that don't involve the kid.

I'll tell you this too...you'll get the best free consultation from the big firms, not the small ones. If a firm files tons of cases, then that means they have tons of streams of income and can afford to give you some more answers. Maybe the attorney's you are visiting are struggling and don't want to provide free counseling all day, or can't afford to. I have no idea, but that could be some of the reason

[2Bshinyandnew]

I can tell you that Child Support counts on the means test. It counts on the budget. And it should be going to the Child's wellbeing, so it really shouldn't be an issue about how much you get at all, because none of it should be going to any of your expenses that don't involve the kid.

Wouldn't accrued child support sitting in a bank account be an asset, exemptable by the corresponding statute for the filers state?

The way I understand it future child support, like future wages, is income for the means test.

[Dizzy]

This child support check was going to be used for a down payment on braces that my son desperately needs. I wanted to wait to have them put on because I don't want to have bankruptcy the orthodontist. I am not proposing doing anything illegal at all. I just feel that this money should go to the child who suffered without it for too long.

[OhioFiler]

This child support check was going to be used for a down payment on braces that my son desperately needs. I wanted to wait to have them put on because I don't want to have bankruptcy the orthodontist. I am not proposing doing anything illegal at all. I just feel that this money should go to the child who suffered without it for too long.

That won't be a problem. You can start the ortho now and ask the dentist to only bill you what youhave available via CS and the balance after you file BK. People like to help other people.