1st post - ?? about "shared" inheritance & bankruptcy

[nervous1]

After months of waking up at 4AM, robbing Peter to pay Paul, etc., I met with a bankruptcy attorney today. Honestly, this time last week this wasn't even a consideration for me. We had thought about my husband filing BK, but he owns some acreage that is worth substantially more than could be exempted. We both have lots of individual cc...he quit paying his months ago (lack of $$$). I have kept current on mine, but it's been VERY VERY difficult. The only income I have is my Ebay business and, I finally realized that all my earnings were going to cc payments.

Our house is in my name. When I sold my townhome (that I purchased when I was single) 10 years ago and purchased this home, we just kept in all in my name. When I talked to the attorney today, I told him MY only real asset that could potentally be a problem was the house. However, with the housing markets down, I'm probably still okay there with the $10K exemption in our state (GA). We decided it was best to get an appraisal.

But, I just remembered that I "sort of" own 2 acres of land. I say "sort of" because it's land that my bros/sisters inherited after my mom passed away in July 09. It's listed on the county's tax office as "my father's name, et al" valued at about $40,000.

I TOTALLY forgot about this when talking to the attorney today. Mostly because, with land values down so much, we're basically just letting it be. I doubt if we could get $4,000 for it right now.

My ??? is, do I have to list this as an asset, even though it's not solely mine to sell?

And I thought I was going to be able to sleep tonite.

[newbie2]

But, I just remembered that I "sort of" own 2 acres of land. I say "sort of" because it's land that my bros/sisters inherited after my mom passed away in July 09. It's listed on the county's tax office as "my father's name, et al" valued at about $40,000.

I TOTALLY forgot about this when talking to the attorney today. Mostly because, with land values down so much, we're basically just letting it be. I doubt if we could get $4,000 for it right now.

My ??? is, do I have to list this as an asset, even though it's not solely mine to sell?

And I thought I was going to be able to sleep tonite.

You have to list all your assets. To not do so would be could buy you a whole lot of trouble. Since the value isn't much, and it is owned by several people, the trustee may very well leave it alone and not include it as an asset to be distributed. Or, he/she may want you to pay the equivalent of your portion of the value to be distributed if it cannot be exempted.

When you sit down with your attorney the next time make sure you tell him about this. Good luck!

[AngelinaCatHub]

You have what is called a 1/3rd undivided interest. If you do not wish to pay the Trustee your value in the share, what could he do? He cannot force the other two to sell. I suppose he could lien the portion, but I really doubt he would. He just may abandon that.

In FL (you know, that state that is truly in the South) we have a homestead exemption that covers up to 160 acres outside of a city and one acre inside a city. FL also has no income tax (yet). That land is a real problem with hubby. Too bad your house is not on that land. You could possibly escape with abandonment. See what your houses are selling for or go to your tax base to see what it is worth. Also ask a Realtor what's happening in your local market. Best to you. 'Hub

[nervous1]

Thanks to you both. Yesterday afternoon (after I met with the attorney), I was actually starting to not feel so beaten down. Then, last night, I remembered the 2 acres (which is actually divided by five of us).

I'm in a quandary. The attorney told me yesterday to stop using the cards and stop paying them. This was assuming I was going to file Chapter 7 in the next few weeks or so. One is due tomorrow ($63 and then another is due July 5 ($380). Right now, $443 is a LOT of money to me.

I would actually be fine with paying the TT for my portion of the land (assuming it's not a huge amt.) Does that mean it's still mine. I have to admit, one of the things I'm afraid of is that my siblings will find out I'm filing bankruptcy. Embarassing.

So...should I pay the cc's or not? I think I'll call the attorney and ask about the land.

[SMinGA]

If you're going to file BK - whether it be next week or 6 months from now - then STOP paying the cards. The phone calls will start, but no need to rush things.

Since you own 1/5 of the property in question - your value is only 1/5 of the total value. Worst case scenario would be that you'd pay 1/5 of the current value to the trustee, you'd keep the land. Should not have to involve your siblings. There is a $600 wild card exemption also...

However, it will be useful when you get a good estimate of the current value of your home. If you don't actually need the full $10k property exemption on your home, unused homestead exemption (up to $5k) can be used as additional wild card.

[nervous1]

Okay....so, I stop paying cards. Phone calls start. Letters are mailed.

At what point do the creditors sue me?

This is all so new to me. Never been late on pmts. It's going to be harder for me to stop paying that it will be for me to stop using them.

I just envision that a sheriff is going to show up on my doorstep.

[keepmine]

Okay....so, I stop paying cards. Phone calls start. Letters are mailed.

At what point do the creditors sue me?

This is all so new to me. Never been late on pmts. It's going to be harder for me to stop paying that it will be for me to stop using them.

I just envision that a sheriff is going to show up on my doorstep.

Nobody can tell you when or even if you'll get sued.
I'd imagine you have 6 months or better before anyone initiates any legal action.