Variety of questions about Ch 7 BK (long) -- any help appreciated
I am considering Ch 7, mainly because I have a second home (a residual from my divorce 4 years ago) that will be going back to the bank. Home value is probably $40K under the mortgage (not including the $50K I put into it) plus it now has structural problems. The bank that owns my mortgage has stated that they ALWAYS pursue the deficiency (likely $50K or more).
So, I have 11K on one card (old medical bills {30K} and car purchase {7K}), $4K on AmEx and about 4K otherwise. I owe my mom for a $25K loan for the retaining wall.
I tore my ACL at Christmas, which cost about $3k after insurance, plus $25 a pop for physical therapy (3 times a week to start). Spent $3K on necessary car repairs this summer. About $1K on animal illness/shots/etc.
I have a good job, but we are getting 10 furlough days this year (about $3900 less per year for this). We have not been told our salary for this year yet!
My son lives with me, he's in college. I pay his health insurance, car insurance, food, and some gas each month. I help with school expenses not covered by the Pell Grant.
I have two cars, both with $180K+ miles. We both need dental work (I need a crown, he needs several filings). We both need to see the eye doctor as well.
I am above the median income for GA (by about $600), but I pass the means test.
I have a roommate who lives in the basement and pays $650. I figured $125 of that goes towards extra utilities and 1/2 TV/Internet (which was part of the agreement).
My ex had been paying me $430 in CS arrearage payments per month, but he lost his job last month and has not found another one.
I have renters in the second house. I stopped paying the mortgage in March for that house, and although I have been getting rent from them, I am going to either reduce the amount they pay or allow them to stay rent-free in exchange for them keeping the house in good condition.
I have had to put my car expenses, vet bills, and some daily living expenses on my credit cards this month. I have never had any credit problems in the past, have always paid my bills, always paid more than the minimum.
Questions:
-- Should I file bankruptcy before the second house forecloses? Any reason not to?
-- If I am giving the second house up, do I consider it's expenses and income when I am filling out the means test?
-- Since the arrearage payments have stopped, do I include them in the means test?
-- Will the expenses I have had to put on my CC's this month be a problem? No luxuries, although I have had to buy some equipment for my kitchen (I am trying to cook at home more to save money) and clothes for my son.
-- In many posts here, I see people saying you should use your money to buy consumables, things you need for living -- is that money coming from what you are not paying to the CC's? Or putting on the CC's?
-- Should my son and I go ahead with the dental and vision expenses, even though I would need to put it on my CC's? I feel guilty thinking about it, and I'm not sure I can do it, since I know I will be filing bk at some point. So, what do I do?
-- I am thinking about getting a newer car, one that will last me for 10+ years. On the one hand, I hate the thought of having a debt after bk -- but on the other hand, making those payments would help me rebuild my credit (my mom has agreed to co-sign for a car either way).
-- The house I live in I plan to keep. I am unsure about whether or not I have equity in the house, because housing values have declined SO much here (but I finished the basement, which increased the value). Should I pay for an appraisal before deciding about bk?
-- How do I determine if I would fall into the non-consumer Ch 7? The second house mortgage is at $150K, my consumer debts are around $20K, plus the $25K I owe my mom. If I am planning on keeping the house I am in, do I count that mortgage in determining consumer vs. non-consumer debt? Or would I just look at what I owe outside of my primary home?
-- My mother loaned my brothers and me each $125K each from our inheritance in order for us to purchase our homes. I signed a contract with her, indicating the $125K was a loan from my inheritance. Would this contract legitimately hold up in court (if it did, I would definitely NOT have any equity in my house)? If my mom died, that money would be mine outright, but until then it is technically just a loan.
-- I have some items I am trying to sell. If I cannot sell them, can I indicate their value as lower than the lowest attempted sale price? For instance, say I am trying to sell a piece of jewelry that I purchased for $3000K 10 years ago -- but I am unable to sell it for $1500K. Can I list the value as less than $1500, since it will not sell at that price?
-- Do I have to not pay on my CC's before filing? Is it okay to pay at least the minimum payments?
-- Should I wait to file until the deficiency payment is on record, or does it not matter? (I qualify without it.)
-- Has anyone here had rental property, stopped paying the mortgage, while continuing to collect payments? I know it is not illegal according to GA law to do so, but I am unsure how it would be looked on by the bk court?
-- I adjusted my tax withholdings (federal and state). Typically, I have been getting $3K back -- changed from 3 withholdings to 5. Of course, that means I will be getting more in each paycheck -- is that a bad idea? Should I change it back?
-- A suggestion made was for me to speak to my mortgage company (for my home) about negotiating a lower monthly payment (currently $1395) -- but is that a good idea before I file, since it reduces my monthly expenses?
Sorry -- I know this is really long. I've been reading the boards (I'm on page 75 now) and I've read the NoLo book. I've had a lot of question percolating!
Any advice, suggestions are appreciated.
So, I have 11K on one card (old medical bills {30K} and car purchase {7K}), $4K on AmEx and about 4K otherwise. I owe my mom for a $25K loan for the retaining wall.
I tore my ACL at Christmas, which cost about $3k after insurance, plus $25 a pop for physical therapy (3 times a week to start). Spent $3K on necessary car repairs this summer. About $1K on animal illness/shots/etc.
I have a good job, but we are getting 10 furlough days this year (about $3900 less per year for this). We have not been told our salary for this year yet!
My son lives with me, he's in college. I pay his health insurance, car insurance, food, and some gas each month. I help with school expenses not covered by the Pell Grant.
I have two cars, both with $180K+ miles. We both need dental work (I need a crown, he needs several filings). We both need to see the eye doctor as well.
I am above the median income for GA (by about $600), but I pass the means test.
I have a roommate who lives in the basement and pays $650. I figured $125 of that goes towards extra utilities and 1/2 TV/Internet (which was part of the agreement).
My ex had been paying me $430 in CS arrearage payments per month, but he lost his job last month and has not found another one.
I have renters in the second house. I stopped paying the mortgage in March for that house, and although I have been getting rent from them, I am going to either reduce the amount they pay or allow them to stay rent-free in exchange for them keeping the house in good condition.
I have had to put my car expenses, vet bills, and some daily living expenses on my credit cards this month. I have never had any credit problems in the past, have always paid my bills, always paid more than the minimum.
Questions:
-- Should I file bankruptcy before the second house forecloses? Any reason not to?
-- If I am giving the second house up, do I consider it's expenses and income when I am filling out the means test?
-- Since the arrearage payments have stopped, do I include them in the means test?
-- Will the expenses I have had to put on my CC's this month be a problem? No luxuries, although I have had to buy some equipment for my kitchen (I am trying to cook at home more to save money) and clothes for my son.
-- In many posts here, I see people saying you should use your money to buy consumables, things you need for living -- is that money coming from what you are not paying to the CC's? Or putting on the CC's?
-- Should my son and I go ahead with the dental and vision expenses, even though I would need to put it on my CC's? I feel guilty thinking about it, and I'm not sure I can do it, since I know I will be filing bk at some point. So, what do I do?
-- I am thinking about getting a newer car, one that will last me for 10+ years. On the one hand, I hate the thought of having a debt after bk -- but on the other hand, making those payments would help me rebuild my credit (my mom has agreed to co-sign for a car either way).
-- The house I live in I plan to keep. I am unsure about whether or not I have equity in the house, because housing values have declined SO much here (but I finished the basement, which increased the value). Should I pay for an appraisal before deciding about bk?
-- How do I determine if I would fall into the non-consumer Ch 7? The second house mortgage is at $150K, my consumer debts are around $20K, plus the $25K I owe my mom. If I am planning on keeping the house I am in, do I count that mortgage in determining consumer vs. non-consumer debt? Or would I just look at what I owe outside of my primary home?
-- My mother loaned my brothers and me each $125K each from our inheritance in order for us to purchase our homes. I signed a contract with her, indicating the $125K was a loan from my inheritance. Would this contract legitimately hold up in court (if it did, I would definitely NOT have any equity in my house)? If my mom died, that money would be mine outright, but until then it is technically just a loan.
-- I have some items I am trying to sell. If I cannot sell them, can I indicate their value as lower than the lowest attempted sale price? For instance, say I am trying to sell a piece of jewelry that I purchased for $3000K 10 years ago -- but I am unable to sell it for $1500K. Can I list the value as less than $1500, since it will not sell at that price?
-- Do I have to not pay on my CC's before filing? Is it okay to pay at least the minimum payments?
-- Should I wait to file until the deficiency payment is on record, or does it not matter? (I qualify without it.)
-- Has anyone here had rental property, stopped paying the mortgage, while continuing to collect payments? I know it is not illegal according to GA law to do so, but I am unsure how it would be looked on by the bk court?
-- I adjusted my tax withholdings (federal and state). Typically, I have been getting $3K back -- changed from 3 withholdings to 5. Of course, that means I will be getting more in each paycheck -- is that a bad idea? Should I change it back?
-- A suggestion made was for me to speak to my mortgage company (for my home) about negotiating a lower monthly payment (currently $1395) -- but is that a good idea before I file, since it reduces my monthly expenses?
Sorry -- I know this is really long. I've been reading the boards (I'm on page 75 now) and I've read the NoLo book. I've had a lot of question percolating!
Any advice, suggestions are appreciated.
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