questions about bankruptcy!

[crystald1156]

My husband and I have talked with several lawyers in the past few months and have tried to save at least some money so we can file... anywways this past friday evening the repo man showed up at our door for my minivan....we owed a couple of payments on it. we plan on paying the van off next year when we get our income tax refund back, or at least pay the major portion of the income tax return on it. We owe of course more than its worth at this point. With that said, some of my husbands family members gave us enough cash to pick it up and get everything squared away on it, and the bank gave us 2 months with no payments. When we got home, we decided to talk to the bank who my husbands truck is financed with, they told us his loan is 20 days late and they will be coming soon to repo his. (his truck isnt worth what is owed on it.) I told him we should probably let them keep the truck (more owed on it than on the van and we have to have a way to transport our 3 kiddos). his cousin is willing to loan him the money to purchase a cheaper vehicle to drive. but my question is wont this be considered a preferance if my husband were to pay him back?

the other question is what will happen with the van when we file bankruptcy? will they say we showed bb& t a preferance and paid them and then let wells fargo repo the truck?

My next question involves my student loans. I have went back to school and of course the only "aid" I can get are student loans. I will have a bit of surplus that will come to me in a check once school starts. Part of it is to be used on books and things needed for school, but will they consider it a surplus of money and try to take it away? I am allowed to use it for school related items such as gas to get there, etc....


Need help please!

[packerfan]

Not sure about the vehicle but I would think...If he files as a lein holder on the vehicle (just like a bank) and you all have a promisory note written up you should be ok would just have to reaffirm the loan in BK

Depending on what kind of loans I don't think your BK will effect your ability to get get loans..as long as they are federal...I also returned to school doing both pell and student loans I don't know if my BK will cause any delays for the upcomming year year yet...as far as the surplus money..I was told once it hits your account no mater what the purpose its considered an asset...Not sure how much of a surplus you get I had close to $3000 and was told to just make sure to keep good records and reciepts of where its spent...

[crystald1156]

i think mine will be about $3000 Do you think we will be ok if we catch up some utility bills and stuff like that? Or do you think it has to be school related? thanks

[packerfan]

You can spend it on utility payment etc...just make sure you keep reciepts to show where he $$ went and don't spend it on frivilous stuff (If your like me you've forgotten what frivlous is anyway). My attorney told me once it hits my account no matter if the purpose is for books etc the courts will view it as an asset so spend it quickly and wisely.

[tcreegan]

student loan money

Hi crystald1156,

'packerfan' has good advice; spend the student loan money b4 filing....any ordinary expense, just not "luxury items" Stock up on stuff, pay ahead on things that aren't a debt payment....school tuition, school clothes, supplies, food, utility bills, phone bills, insurance payments, (assuming your utilities, phone co., insurance co. aren't going to be in the BK. Seen some folks put the utility company in the bk and then wonder why they were having a hard time getting service turned back on...)

...do NOT make payments on loans, credit cards, except:....stay current if you plan to keep a car or a house or some other secured debt.

....do NOT spend any $$ on high quality sporting gear, high end electronics, fur coats, jewelery, or firearms. ('luxury items')

...do NOT give any $$ to family members. The trustee can attach that $$ and drag it back. Except......you and family write up a promissory note and sign it. The promissory notes gives the principal amount, interest rate (could be 0), how many payments on what day of the month, and a clear description of the vehicle that will be the secured interest for the lenders.
There are examples of these online, go find one that seems to fit you situation.

Now you pay the bank and your family equally on the van.

Stop paying on the truck. If you can duck the repo man until filing, you get to use it another month or so while you are under the protection of the automatic stay from the court.

Car from cousin Cal to replace truck: Leave this vehicle in Cousin Cal's name and he just loans it to your spouse. After the BK case closes, spouse sets up payment plan to pay back cousin Cal.


AND REMEMBER.....student loans are not dischargeable, not even private loans for school supplies. You list it as debt on your bk paperwork, but it will not be discharged and they will be looking for you to set up a payment plan, deferment, or some other way for you to have a plan to pay back the student loans.

Hopefully you already knew all of this, and I am just babbling along...

Tom in Colo