What a mess, need advice

[OhioFiler]

You're going to need to know what that house is actually worth for bankruptcy. It sounds like it's not worth what you owe.

Your cash advances nine months ago are probably not an issue.

[StartingOver08]

... What it would appraise for and what it would sell for right now are two entirely different things. ...

Remember, an appraisal is an opinion of value based on what the property would sell for in today's market. If your appraisal shows a 'higher' value than what you would receive in a sale today - then the appraisal is not worth the paper it is written on...

Today the appraisals have an extremely short shelf life. Used to be you could rely on the value for about 6 months, now the maximum time they are considered valid is usually 90 days.

[Amy26]

Also, if in fact your equity in the house is between 50-100k and you own your cars outright and they are worth what you say... you could be deemed an "asset" case where the trustee will take your assets, sell them and use the money to pay off your creditors. I'm not sure what the exemptions are in your state, and it could certainly be possible to keep your possesions, but just throwing that into the mix of information you need to find out.

You need to take your income and subtract out all your expenses and see how much you have left over (excluding the credit card payments). To qualify for a 7 and be over the median income (which I'm guessing you are), you need to be left with very little to nothing every month in expenses. I don't have the site off the top of my head but I think its in one of the stickies that has a link for the online means test. You can take that and get a ball park.

Definately consult with some good attorneys in your area and read through some of the stickies here.

[DebtEnder]

Assets you can protect in bk 7 in Nevada that are relevant to you.

Motor vehicle to $1500; no limit if vehicle equipped to provide mobility for disabled person- In your case at least one of your cars could be taken by the court to pay creditors if it's really worth 6500 with no lien on it.

Real property or mobile home to $125,000 (husband and wife may not double)- As said before your home is worth what it will sell for, nothing else matters, AT ALL. I think in your case your well within this limit so the house is safe.

Appliances, household goods, furniture, home and yard equipment to $3000 total-All this is quick sale YARD sale pricing. Now is not the time to be prideful and say how much you paid for, but rather what Joe Blow of the street would say if you walked out the front door with a table/TV/ETC ETC and said what will you buy this for RIGHT NOW

Books to $1500

Burial plot purchase money held in trust

Funeral service contract money held in trust

Health aids

Keepsakes & pictures

No wildcard in Nevada

It sounds like you have 1 car that could be taken and if you are expecting a tax refund for 09 that would be taken as well.

To see if you can do a chapter 7 assuming your over the median income for Nevada here is a link for an online means test.

http://www.johnfire.com/meanstest/wizard.php

median income for Nevada is for Household size of
one $46,316
Two $60,449
Three $67,052
Four $71,104
Add $6,900 for each individual in excess of 4.

if you make over this for your respective family size you must do the means test as that link will show you.

[Will]

Well, it does sound like I would lose a car. Actually just did my taxes and I'm getting a small refund, couple hundred dollars. The house is our biggest asset. I've been doing research and at most we have $100,000 equity in the house but probably closer to $50,000. That's safe, right? I was thinking to get a new car and car payment before we file. I did the means test and came out with $200+ left over so a car payment should eat that up plus give us a second car and reliable transportation. What about appliances? We bought all new appliances using the credit cards when we bought the house. Some are very nice, to be honest. Is this safe at all? If not, we need to figure out how to replace them.

Thank you for your help!!

Assets you can protect in bk 7 in Nevada that are relevant to you.

Motor vehicle to $1500; no limit if vehicle equipped to provide mobility for disabled person- In your case at least one of your cars could be taken by the court to pay creditors if it's really worth 6500 with no lien on it.

Real property or mobile home to $125,000 (husband and wife may not double)- As said before your home is worth what it will sell for, nothing else matters, AT ALL. I think in your case your well within this limit so the house is safe.

Appliances, household goods, furniture, home and yard equipment to $3000 total-All this is quick sale YARD sale pricing. Now is not the time to be prideful and say how much you paid for, but rather what Joe Blow of the street would say if you walked out the front door with a table/TV/ETC ETC and said what will you buy this for RIGHT NOW

Books to $1500

Burial plot purchase money held in trust

Funeral service contract money held in trust

Health aids

Keepsakes & pictures

No wildcard in Nevada

It sounds like you have 1 car that could be taken and if you are expecting a tax refund for 09 that would be taken as well.

To see if you can do a chapter 7 assuming your over the median income for Nevada here is a link for an online means test.

http://www.johnfire.com/meanstest/wizard.php

median income for Nevada is for Household size of
one $46,316
Two $60,449
Three $67,052
Four $71,104
Add $6,900 for each individual in excess of 4.

if you make over this for your respective family size you must do the means test as that link will show you.

[needachance]

Not advisable to get a car loan right before filing BK. Besides with that debt to income ratio I doubt you would qualify. If you do, then the system is more screwed up than I thought it was.

[Will]

Well, my concern is the money I have left after the means test. $209. I really would like to do a Chapter 7 and start over plus I do need reliable transportation if I lose the other car that's paid for. Maybe I can get a car and then just wait a few more months? I really don't want to get all the harrassing calls but maybe that's my best option.

[signal]

You should put a full year between the advances and when you file. If you know you are going to file for sure, then you should stop paying on your cards and then use that money to pay for your lawyer, pay your expenses, etc....

I am not that knowledgable in these matters, but tell me, if someone stops paying the credit cards for a year, wont you get judgements/suits filed against you long before you file for bk? And isn't that a problem? I am just asking because I don't know, I am wondering if it matters how long you can't pay creditors and if it creates more problems other than the phone call hell you have to go through.

[signal]

Well, my concern is the money I have left after the means test. $209. I really would like to do a Chapter 7 and start over plus I do need reliable transportation if I lose the other car that's paid for. Maybe I can get a car and then just wait a few more months? I really don't want to get all the harrassing calls but maybe that's my best option.

Isn't it possible if your that close, to just buy some term life? contribute to a health care savings plan? contribute less to retirement accounts (so your taxed)? I mean, maybe I am oversimplifying it, because I have thought about this myself, but it would seem those are deductible and @ 209.00 you are damn close.

[Will]

Isn't it possible if your that close, to just buy some term life? contribute to a health care savings plan? contribute less to retirement accounts (so your taxed)? I mean, maybe I am oversimplifying it, because I have thought about this myself, but it would seem those are deductible and @ 209.00 you are damn close.

Very good points. My wife and I already have term life factored in that we've had for awhile. Hadn't thought about the 401k and health savings. I will look into that. Thanks!

[signal]

Very good points. My wife and I already have term life factored in that we've had for awhile. Hadn't thought about the 401k and health savings. I will look into that. Thanks!

Well you will want others to confirm this, I am pretty new to learning about this stuff, and I have no idea if that would actually work. I just look at means test and see the following:

Your probably locked into secure debts, and possibly very little ability to acquire new secured debt and besides acquired new secured debt may end up hurting you (abuse).

There are a few things on the exemptions that are discretionary, you can choice to have them or not choose. Like term life, healthcare savings plan, paying into retirement accounts. I even look at taxes as a bit subjective. For someone who earns a good income, usually there are many options for deductions. Many of us take those deductions, which allow us to pay less taxes. I am not sure if you legally must take a deduction. So you normally deduct mileage, or normally deduct other things. Well, I am not sure, but I don't see why you can't elect not to take deductions and pay a little more taxes ($50/mo, $100/mo, whatever). I mean, sure your giving money to the Govt, but is that really a problem?

I can't wait until I get through my next few lawyer interviews, and I can confidently select someone help me through this. Until then I have alot of questions and all I can do is try to learn as much from others on here as possible.

[DebtEnder]

Taxs have no bearing on the means test. It is based on gross income. The trustee is going to look at your tax return and say you over withholding you will have this to pay into the plan. You could choose to really be lazy on the taxes regarding deductions I guess but tread carefully. If they look at a few years returns they WILL see the difference. The UST's are not dummies

If you are self employed then if the business is profitable then you have it's income. If it's not then you have 0 income. You can't use it to take away income. Suddenly changing your business expenses to reduce it's income/profitability would be quickly seen by any competent trustee and would nail you to the wall with it most likely.

Be wary of adding things to you lifestyle and then filing BK. You would want I think at least one tax return showing these"contributions" before filing for BK.