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Many questions on chapter 7

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    Many questions on chapter 7

    I am new to the site and not sure where I should post all the questions I have related to filing Chapter 7.

    We will not be filing until August or September because of income issues. I was taking an ACH distribution from my IRA and needed to stop due to showing to much income . Filing Chapter 7 due to high credit card debt, HELOC and a federal tax bill due for 19,000. We have ceased paying the credit card debt & equity line of credit ( Home that has equity line has been foreclosed and sold ) We were current on all payments until March 1).

    We have retained a BK Lawyer and given him 250.00 for first meeting . He has not been very helpful . When I telephoned him to inform him of the desire to switch from Chapter 13 to Chapter 7 he told me I needed to write all questions down and ask at the designated meetings. We have recently relocated to a Arkansas from Arizona and were referred to him by a legal service. Due to the income issue he said to let him know if any of the creditors file a lawsuit and tell the IRS we are filing and will make a payment commitment after filing. Does this sound logical ?

    We bought the home we are in with cash (128,500), two vehicles 2004 truck and 2006 car are paid for. We own a 2004 19' camper trailer also paid for and all furniture , etc. in the home which is all paid for. I am very nervous about the exemption amounts allowed ( we will be using AZ exemptions due to time residing in AR) . The home is homesteaded in AR and the AZ exemption is 150,000.

    We relocated due to lost retirement income and job loss in AZ. My spouse is working and as stated I have ceased my distribution and have been unsuccessful in gaining employment ( cannot work now anyway due to income qualification for filing Chapter 7). We have some cash in the checking account which I would like to take out and keep on hand for emergencies (1,500.00) and then keep only the amount needed for household expenses.

    My questions are as follows: 1) Is it likely that we will be able to retain both vehicles ? 2) Can the Credit Card Companies go into the checking account to get payments ? 3) Should I close checking and savings account ( savings is for property taxes) ?

    I realize I have written a lot here but would appreciate as much help as anyone has time to give!! It is such a relief to have somewhere to go for help and understanding. Thank's!

    #2
    My questions are as follows: 1) Is it likely that we will be able to retain both vehicles ? 2) Can the Credit Card Companies go into the checking account to get payments ? 3) Should I close checking and savings account ( savings is for property taxes) ?
    1.) what is the exemption value for vehicles in AZ? How much are your vehicles worth (use Kelly Blue book online)?

    2.) No they cannot just 'go' into your checking account to take money. Obviously if you have any auto-draft payments set up you should cancel those.

    3.) I did not close my checking/savings account but they are with a credit union that I have no debt obligations to (I don't owe them money). I have read that some do close their accounts if the account is with a bank that is also one of the creditors they are defaulting on (ie: Chase credit card and you have a Chase bank account). I would ask your lawyer as one of the questions I was asked was if I closed any bank accounts in the last six months.

    Due to the income issue he said to let him know if any of the creditors file a lawsuit and tell the IRS we are filing and will make a payment commitment after filing. Does this sound logical ?
    Yes it does sound like a reasonable plan for now until you are closer to filing. Since you have been current until March 1st I wouldn't worry too much about being sued just yet. Most will be turned over to collections after 120 days. If they do sue you, getting a judgement takes time. Just be sure to let him know of any summons you may receive and he should advise you what kind of answer to file.

    Comment


      #3
      madmama

      1) Kelly Blue Book places value of 2004 Truck @ 10,000 and 2006 kia @ 16,000 and AZ exemption is $5,000 ( not sure if it is per vehicle but am assuming it is). I read that you should base the value on what you would get if you sold the vehicles privately? If not what could we do so we can keep the vehicles. We cannot afford to have them taken and buy new.

      2) No auto-drafts set up and I have no debt obligations to this Bank.

      Thank you so much for answering my questions! I really appreciate the quick response!

      Comment


        #4
        I don't know what you could do (if anything) to protect your vehicles if the exemptions do not cover them.

        Yes, private-sale value. Those values seem a bit high to me ???

        My 2005 Nissan Altima was valued around 6K.

        Comment


          #5
          madmama

          I'll check ads for private sale prices.. I know the value is pretty high since we have low miles on both vehicles and they are in really good condition. The attorney didn't seem too worried but like I said he really didn't give much info on anything. Maybe I am expecting too much from him? I am getting more info and advice from you and this site...Thank's

          Comment


            #6
            First of all, I highly encourage you to get a lawyer you're comfortable with. This is a very stressful decision and you deserve someone that you can work with. I've been pouring over the forums over the past few months and lots and lots of users have regretted not finding a different lawyer.

            If you have a bank account at Bank of America, for example, and have a credit card with them, they can use "right of offset" and take the money out of your account. Same if you bank with Chase or Capital One or anywhere you also have debt. So yes, and no.

            Good luck. Take a deep breath. Educate yourself as much as possible. And find a good lawyer.

            Best,
            ResearchMode
            A mom on the Gulf Coast of FL in the process of filing CH7 and blogging about it. (link removed)
            Last edited by Flamingo; 03-10-2010, 03:36 AM. Reason: Personal Link Removed
            A mom on the Gulf Coast of FL filing CH7 and blogging about it. http://chapter7beforeandafter.blogspot.com

            Retained Lawyer: 4/5/10. Filed: 6/17/10. 341: 7/21/10. Discharge Date: TBA

            Comment


              #7
              Kelly Blue Book gives Private Party values.

              Comment

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