Maybe chapter 7?

[johnb]

My situation.

Live in Oregon
Have 23K in credit card debt.
Wife has 45K in student loans

Current on mortgage payments. Owe more than the house is worth. Current on auto loan.

Oldest daughter gets SSI and still needs full time care(19 years old). My wife stays home to care for our daughter since reliable care providers make $20 an hour.
I bring home $600 a week and my daughter contributes her $674 SSI check each month.

I'm late on all my CC and Citi just won a judgment for 13000(including attorney fees).

You know where this is going.

So I have a few questions. Do you think we may be able to file chapter 7 and retain our house and our two cars. We have no valuable assets that I can think of. Heck my TV is 10 years old.

Could we maybe discharge the student loan debt as well. Anyone from Oregon have a good attorney that can help or recommend?

[scorpion35]

My situation.

Live in Oregon
Have 23K in credit card debt.
Wife has 45K in student loans

Current on mortgage payments. Owe more than the house is worth. Current on auto loan.

Oldest daughter gets SSI and still needs full time care(19 years old). My wife stays home to care for our daughter since reliable care providers make $20 an hour.
I bring home $600 a week and my daughter contributes her $674 SSI check each month.

I'm late on all my CC and Citi just won a judgment for 13000(including attorney fees).

You know where this is going.

So I have a few questions. Do you think we may be able to file chapter 7 and retain our house and our two cars. We have no valuable assets that I can think of. Heck my TV is 10 years old.

Could we maybe discharge the student loan debt as well. Anyone from Oregon have a good attorney that can help or recommend?

u should do the means test to see if u can file chapter 7 or not
u cannot discharge student loans
are your cars paid off?
u should contact 3 -4 lawyers for the free inicial meeting

[johnb]

u should do the means test to see if u can file chapter 7 or not
u cannot discharge student loans
are your cars paid off?
u should contact 3 -4 lawyers for the free inicial meeting

One car paid for. Other I owe but current on payments. Yes I'll contact several BK lawyers.

[tcreegan]

Oregon exemptions

Hello JohnB

You will NOT be able to discharge the student loans. Period. I don't care what a lawyer tells you, not happening.

You pass the means test, hands down.

Oregon uses state exemptions, not federal ones.

There is an exemption of $1700 for cars. If the paid-off one is close to that you will probably keep it. If it is worth a lot more, you might lose it.

For the house and other car, your options are surrender, reaffirm (you remain legally liable for the debt), or "ride through" (don't reaffirm but keep making payments)

If you owe more on the house than it is worth, any lawyer worth his salt will not let you reaffirm (it is not in your best interest). The court will not let you unless the lawyer can prove it will be within your post-bankruptcy means.

A good lawyer will recommend a "ride through" on the car w/ payments. You do not reaffirm the debt (not legally responsible for the debt) but keep making payments on the premise the car finance company will not repo the car if you are current on payments (what usually happens)

Hope this helps,

Tom in Colo

[johnb]

Hello JohnB

You will NOT be able to discharge the student loans. Period. I don't care what a lawyer tells you, not happening.

You pass the means test, hands down.

Oregon uses state exemptions, not federal ones.

There is an exemption of $1700 for cars. If the paid-off one is close to that you will probably keep it. If it is worth a lot more, you might lose it.

For the house and other car, your options are surrender, reaffirm (you remain legally liable for the debt), or "ride through" (don't reaffirm but keep making payments)

If you owe more on the house than it is worth, any lawyer worth his salt will not let you reaffirm (it is not in your best interest). The court will not let you unless the lawyer can prove it will be within your post-bankruptcy means.

A good lawyer will recommend a "ride through" on the car w/ payments. You do not reaffirm the debt (not legally responsible for the debt) but keep making payments on the premise the car finance company will not repo the car if you are current on payments (what usually happens)

Hope this helps,

Tom in Colo

The car I own is 26 years old. Anyone know how I can get a car value on a 1984 BMW 533i with 250K on the ODO. I doubt its worth more than $1000 but KKB doesn't have values for cars that old.

My other concern is that Citi filed a lawsuit and in Oregon we have mandatory arbitration which of course Citi won hands down just a few days ago. Now my plan is to file an appeal as soon as the arbitrator sends his decision to the county. Then my court date wouldn't be until late December. If I decide to go chapter 7 do you think I might be able to get the lawsuit dismissed or am I screwed?

[hamburgervol]

The car I own is 26 years old. Anyone know how I can get a car value on a 1984 BMW 533i with 250K on the ODO. I doubt its worth more than $1000 but KKB doesn't have values for cars that old.

My other concern is that Citi filed a lawsuit and in Oregon we have mandatory arbitration which of course Citi won hands down just a few days ago. Now my plan is to file an appeal as soon as the arbitrator sends his decision to the county. Then my court date wouldn't be until late December. If I decide to go chapter 7 do you think I might be able to get the lawsuit dismissed or am I screwed?

NADA says the BMW is worth $4325(average retail). That seems high though.

[mrskal]

If you have a carmax near, you can take it there and see what they offer to take it. They will print up a sheet, with what they would pay.

[johnb]

Carmax I'll look into that.

Looks like since I'll be filing with my wife that I can double the $1700 exemption. I plan on just riding the Rover loan through so that car shoudn't be part of the chapter 7 filing.

I feel like such a schmuck even thinking about chapter 7. Goes against everthing I stand for.

Word to you all if you can work out a deal with your credit card company do it. Citibank is really out for blood. If they win the lawsuit which they will I'm sure they would attach a lien on my house, wages, bank. Then force a sell of my house. I bought the house for 172K a few years back. I now owe 153K but the house is only worth 145K according to Zillow. So if citibank forced a sell I'd still owe 13K on the house.

[tcreegan]

include all debts, inc. ride throughs

Hello Johnb,

"I plan on just riding the Rover loan through so that car shoudn't be part of the chapter 7 filing."

You have to include all debts and creditors, even if you plan to ride-through.

"Citibank is really out for blood. If they win the lawsuit which they will I'm sure they would attach a lien on my house, wages, bank. Then force a sell of my house. I bought the house for 172K a few years back. I now owe 153K but the house is only worth 145K according to Zillow. So if citibank forced a sell I'd still owe 13K on the house."

They are trying to scare you. Don't be fooled. You are protected by Oregon laws that restrict what can happen in a collection. They cannot force the sale of the house, not a chance. Even if they get a lien, nothing happens until you go to sell it or transfer it. The lien has to paid off at that time.
They can go after bank accounts (depending on state law) so that is your biggest worry.
They and get an order to garnish your wages, again, depending on state law.

Everything CitiBank can do is spelled out in Oregon state law. Find this and read it or get a lawyer to tell you what can happen.

And....no matter what CitiBank does, it all goes away in the bankruptcy.

Good Luck,

Tom in Colo