Hello, all. I am in a holding pattern regarding my Ch7 filing -- still hoping to wait until summer so I don't have to miss work. If I can make it the next 4-6 weeks without garnishment, it should all be good (as far as work!).
New information and questions!
1. The car my son has been using (a 1998 RAV4 with 200K miles) is on it's last legs. It quit, and after $800 to get it running again, the mechanic said that it will take over $2500 to fix all the issues with the car. The RAV was originally my mom's, which she gave to me to drive, which I then gave to my son when his old car died. My father (who died in 2003) gave the RAV to her, and so she wants to keep it for sentimental value and to drive in the winter when it snows.
FAMILY LOAN? -- My mom agreed to loan me $15K to purchase a reliable car for my son to drive. We found him a car and purchased it this weekend. My intent is to have her listed as a lien holder on the car title, and to have the loan terms notarized. The terms we agreed on are payments of $442 per month, 4% for 36 months, and returning the RAV to her. Is this going to be a problem for the trustee?
KEEPING THREE CARS? -- Complication -- when I called to get insurance on the the Subaru my son will drive, I was quoted $6500 per year!! [insert heart attack sounds here] So, it is going to be cheaper to keep the RAV on my insurance as my son's primary car. I also had to increase my deductibles and go to liability only on the RAV to get the rate to $3100 per year. However, keeping the RAV on my insurance means I have three cars, and I worry about the exemptions (which cover only two cars).
EXEMPTIONS? -- I am planning on getting the mechanic to write up an estimate and his opinion of the RAV's inability to be a daily driver. It is in poor condition (tear in seat, stains, dents, trailer hitch torn off -- don't ask! -- missing grill, etc.). KBB Fair value is $2775. I should have exemption left over from my house. My Camry (2001, 190K miles) in good condition should come in around $4000, and the Subaru looks like it is worth around $19K private party value -- we paid $14,500. Do you usually us trade-in or private party value? Will the trustee have problems with my having three cars, if I can show that having just two would increase my car insurance rates from $3100 to $6500 a year?
-- I just found out my health insurance payments will be going up 20% in July (they talked about increasing them by 60%!!). That will mean an extra $60 a month or so.
-- My car insurance will increase from $250 to around $300 or so a month.
TENANT LEAVING, WAIT TO RE-RENT? -- My basement tenant has decided to buy and house and will be leaving within the next month. That means $650 less a month. I will re-advertise for a tenant, but it is tempting to wait until after the bankruptcy -- is that a bad idea? I was also thinking of increasing the rent to $750 a month, but obviously would rather not have that income when I file bankruptcy. However, if I am planning on renting it out in the future (assuming I can find a renter) should I just go ahead and do it? Will it throw up a red flag to the trustee?
-- I have gotten my tax refund. The state was around $1000 -- which ended up going to pay for my cat to be diagnosed with and treated for diabetes in January. The federal return came in at $3900 -- so far about $1000 has gone for car repairs. Since I am keeping my Camry, there is another $500 in work that needs to be done to keep it running. I also stocked up on cat food and need to buy my 3 months of Rx meds (~$400). For the rest, I was thinking of paying extra on my car insurance -- that is okay, right?
-- How do I account for the fact that we do not know what the state will do regarding our pay next year? This year we had 10 furlough days -- next year it could be more, they could just wholesale reduce pay, or any variety of things. Do I just mention it in my paperwork? Print off articles that talk about the state's budget shortfall and potential solutions?
Can I just say, this bankruptcy stuff is insane, and can create bad habits! It discourages saving money. On the plus side, I have acclimated to life without credit cards -- though I'll be screwed if the banks limit debit card purchases to under $100!!
NEWLY FILED LIEN? - Oh -- my mom lent me (and my siblings) money for a downpayment on a house. We had signed a contract, but it was not legally filed with the court. With my impending bankruptcy, we had a lawyer draft a legally binding contract and I filed it with the court. Is the trustee going to give me grief about the timing of the filing? Will a copy of the signed contract (made in 2006) be enough? My brother and mom did file a lien through the courts for his money (because he was getting married, to keep it separate and protect his future inheritance).
New information and questions!
1. The car my son has been using (a 1998 RAV4 with 200K miles) is on it's last legs. It quit, and after $800 to get it running again, the mechanic said that it will take over $2500 to fix all the issues with the car. The RAV was originally my mom's, which she gave to me to drive, which I then gave to my son when his old car died. My father (who died in 2003) gave the RAV to her, and so she wants to keep it for sentimental value and to drive in the winter when it snows.
FAMILY LOAN? -- My mom agreed to loan me $15K to purchase a reliable car for my son to drive. We found him a car and purchased it this weekend. My intent is to have her listed as a lien holder on the car title, and to have the loan terms notarized. The terms we agreed on are payments of $442 per month, 4% for 36 months, and returning the RAV to her. Is this going to be a problem for the trustee?
KEEPING THREE CARS? -- Complication -- when I called to get insurance on the the Subaru my son will drive, I was quoted $6500 per year!! [insert heart attack sounds here] So, it is going to be cheaper to keep the RAV on my insurance as my son's primary car. I also had to increase my deductibles and go to liability only on the RAV to get the rate to $3100 per year. However, keeping the RAV on my insurance means I have three cars, and I worry about the exemptions (which cover only two cars).
EXEMPTIONS? -- I am planning on getting the mechanic to write up an estimate and his opinion of the RAV's inability to be a daily driver. It is in poor condition (tear in seat, stains, dents, trailer hitch torn off -- don't ask! -- missing grill, etc.). KBB Fair value is $2775. I should have exemption left over from my house. My Camry (2001, 190K miles) in good condition should come in around $4000, and the Subaru looks like it is worth around $19K private party value -- we paid $14,500. Do you usually us trade-in or private party value? Will the trustee have problems with my having three cars, if I can show that having just two would increase my car insurance rates from $3100 to $6500 a year?
-- I just found out my health insurance payments will be going up 20% in July (they talked about increasing them by 60%!!). That will mean an extra $60 a month or so.
-- My car insurance will increase from $250 to around $300 or so a month.
TENANT LEAVING, WAIT TO RE-RENT? -- My basement tenant has decided to buy and house and will be leaving within the next month. That means $650 less a month. I will re-advertise for a tenant, but it is tempting to wait until after the bankruptcy -- is that a bad idea? I was also thinking of increasing the rent to $750 a month, but obviously would rather not have that income when I file bankruptcy. However, if I am planning on renting it out in the future (assuming I can find a renter) should I just go ahead and do it? Will it throw up a red flag to the trustee?
-- I have gotten my tax refund. The state was around $1000 -- which ended up going to pay for my cat to be diagnosed with and treated for diabetes in January. The federal return came in at $3900 -- so far about $1000 has gone for car repairs. Since I am keeping my Camry, there is another $500 in work that needs to be done to keep it running. I also stocked up on cat food and need to buy my 3 months of Rx meds (~$400). For the rest, I was thinking of paying extra on my car insurance -- that is okay, right?
-- How do I account for the fact that we do not know what the state will do regarding our pay next year? This year we had 10 furlough days -- next year it could be more, they could just wholesale reduce pay, or any variety of things. Do I just mention it in my paperwork? Print off articles that talk about the state's budget shortfall and potential solutions?
Can I just say, this bankruptcy stuff is insane, and can create bad habits! It discourages saving money. On the plus side, I have acclimated to life without credit cards -- though I'll be screwed if the banks limit debit card purchases to under $100!!
NEWLY FILED LIEN? - Oh -- my mom lent me (and my siblings) money for a downpayment on a house. We had signed a contract, but it was not legally filed with the court. With my impending bankruptcy, we had a lawyer draft a legally binding contract and I filed it with the court. Is the trustee going to give me grief about the timing of the filing? Will a copy of the signed contract (made in 2006) be enough? My brother and mom did file a lien through the courts for his money (because he was getting married, to keep it separate and protect his future inheritance).
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