cars value- purchase another? & home

[digginout]

we are about to file. Planned on filing seperate but decided to go all in

Ohio
family of 5
under $40,000 a year

most of the debt is in my name. But the cars are all in DH's.

we have a 1996 cutlass supreme that needs some work, its our just turned 18 yr. olds car

1997 jeep grand cherokee that needs a transmission- its our 16.5 yr. olds vehicle.

a 2001 olds calae(?) that DS just wrecked. Still drivable. It was a salvage we fixed up to clear title

2003 f150 4x4 that needs motor work and body is rough, it was a construction truck.
Still owe $1100 on this, the others are pd for.

we will lose the truck, correct?
will they take into account that the vehicles are the kids and mine?

can we get a loan NOW on a vehicle while DH's credit is good?
how soon can you file AFTER the purchase??

house is $58,000 we owe $25,000, how will that work?

[momtoroxy]

I am not sure about this one. I am sure someone will chime in. We had to purchase a new car in mid-August because DH was in a car accident and our Prius was totaled (it was only 1 year old). Our attorney said it would not be an issue because we were replacing a car and the payments were only a little bit more. We are glad we got the new car because we were able to get 3.9% financing! Probably wouldn't have happened after discharge.

[LimpDisc]

We purchased a new car on August 18, 2009 and plan on filing next month. The attorney's we had consults with said we could purchase a new vehicle and file the next day. The car loan is a secured loan and you're not looking to defraud anyone.

[digginout]

thanks, I appreciate the help

if we sold the truck right before filing to fix our damaged roof, does that look bad?
we have a LOT of water damage and need it fixed asap.

[OhioFiler]

thanks, I appreciate the help

if we sold the truck right before filing to fix our damaged roof, does that look bad?
we have a LOT of water damage and need it fixed asap.

No trustee will want those assets. Your cars and truck are all safe. You also have a $20,200 homestead exemption so you have some exposure with the house. How did you arrive at the value of $58,000?

You can sell the truck and fix the roof if you want without any problem.

[digginout]

I quit paying on some of the credit cards in May, how long can I hold off before filing. I did get one letter saying they were looking at my assets. I actually have none cars are in DH's name and house is in his or both, cant remember.
Is the 20,000 for the house for BOTH of us or is it times 2?
the $58,000 is tax value

[OhioFiler]

I quit paying on some of the credit cards in May, how long can I hold off before filing. I did get one letter saying they were looking at my assets. I actually have none cars are in DH's name and house is in his or both, cant remember.
Is the 20,000 for the house for BOTH of us or is it times 2?
the $58,000 is tax value

We stopped paying in January 2009 and had our first suit filed 1 week ago. It is GE Money Bank.

Our attorney advised us we could not double the homestead exemption and I never researched any further as the $20,200 was all we needed.

The tax value of your home is meaningless. You need to find out what your home is worth on the real estate market. It's value will also be net of any selling expenses. Also, with the water damage you mention I doubt the home is worth anywhere near the tax value.

[seekininfo]

if we sell the truck, we will be buying material to fix the house. I will be putting the last $800 we owe on the truck on CC so I can have the title.
Can I pay it back when the truck sells or is that prefential?
I dont want it to look like we used the card knowing we were filing, I mean, we are, but planning on paying it bacK!

the work on the house will make it worth about the $58,000 value. Will they want to sell it if we only owe $25,000? we would rather keep paying of course

[StartingOver08]

The $800 put on the credit card and paid back within 90 days of filing will be seen as preferential (at least).

Make sure if you pursue this plan that you have a min of 90 + days from the time of the $800 payment to the cc. The more time between the last payment and the filing date the better for your BK filing.

As to trying to make your house worth the full $58k - don't do that. The figure you are looking for here (in the way of value) is ACTUAL market value. Make sure your equity in the house is covered by your exemptions so you can keep the house. For example, if your house is worth $58k and you owe $25k - the "equity" is $33k and yet your exemption is for only $20,200. That leaves $13k for the Trustee. (Not quite, because of the cost of sale expenses). But if your house were only worth $45k for example, then the entire equity is protected and your home is protected. However, if you both are filing then you have double the exemptions available.

Ohio has some other exemptions available, please check them out. Also you have TBE available if the deed was filed before April 4 1985. There are some exceptions look at this link: http://www.legalconsumer.com/bankrup...+OH#exemptions)

Naturally check with your attorney first.

[digginout]

what if I DONT pay back the $800, then after filing, will they say I used the CC so have to pay, THEN I can pay them back, so its not preferential?

I dont WANT to make the house worth more, just need to do the work sooner rather than later, thats why i need the title to the truck so I can sell it.
I quit paying on some of the cards in May so not sure if i can hold out another 90 days.

From the link, I cant tell if they double the 20,000, if so, that would more than cover it if we both file?

forgot to add, we were paying the $800 on the truck with a BT 0% check. Bad idea?

The $800 put on the credit card and paid back within 90 days of filing will be seen as preferential (at least).

Make sure if you pursue this plan that you have a min of 90 + days from the time of the $800 payment to the cc. The more time between the last payment and the filing date the better for your BK filing.

As to trying to make your house worth the full $58k - don't do that. The figure you are looking for here (in the way of value) is ACTUAL market value. Make sure your equity in the house is covered by your exemptions so you can keep the house. For example, if your house is worth $58k and you owe $25k - the "equity" is $33k and yet your exemption is for only $20,200. That leaves $13k for the Trustee. (Not quite, because of the cost of sale expenses). But if your house were only worth $45k for example, then the entire equity is protected and your home is protected. However, if you both are filing then you have double the exemptions available.

Ohio has some other exemptions available, please check them out. Also you have TBE available if the deed was filed before April 4 1985. There are some exceptions look at this link: http://www.legalconsumer.com/bankrup...+OH#exemptions)

Naturally check with your attorney first.

[StartingOver08]

The issue is the timing of the payment and the amount. Cumulative payments of $500 or more to unsecured creditors within 90 days of filing are considered preferential payments. Charges within 90 days are considered fraudulent because they are made when you knew you were insolvent according to BAPCA.

So in order to avoid those issues in your BK make sure the charges and the payments occur outside the 90 day window. One clarification here: if you have continued to pay each unsecured creditor each month it would be difficult to say it is preferential. Some people file without stopping any payments any to creditors.

You stopped your payments in May so if you get $800 from a cc that would be a cash advance - also considered fraud within 70 days of filing. If you have another resource to get the $800 (like selling something else) it would be a better idea. It may be difficult to justify to the Trustee stopping payment on your cc's in May and yet borrowing in Nov from another card. The Trustee is likely to say you knew you could not pay it back. If you did pay it back and then filed it still looks preferential. JMHO. Ask your attorney about your plan.

That link to the OHIO exemptions says that you can double the exemption amounts if you are filing jointly. Read the entire site and of course ask your attorney.

[digginout]

thanks!
I'll try to figure something else out for the truck.

The issue is the timing of the payment and the amount. Cumulative payments of $500 or more to unsecured creditors within 90 days of filing are considered preferential payments. Charges within 90 days are considered fraudulent because they are made when you knew you were insolvent according to BAPCA.

So in order to avoid those issues in your BK make sure the charges and the payments occur outside the 90 day window.

You stopped your payments in May so if you get $800 from a cc that would be a cash advance - also considered fraud within 70 days of filing. If you have another resource to get the $800 (like selling something else) it would be a better idea. It may be difficult to justify to the Trustee stopping payment on your cc's in May and yet borrowing in Nov from another card. The Trustee is likely to say you knew you could not pay it back. If you did pay it back and then filed it still looks preferential. JMHO. Ask your attorney about your plan.

That link to the OHIO exemptions says that you can double the exemption amounts if you are filing jointly. Read the entire site and of course ask your attorney.