Stupidest Questions About Bankruptcy Ever

[bk916]

I'm going to see a bk lawyer next friday (Friday the 13th). All the debts are owed by me and I am unemployed. I live in northern california. I have some questions:

1. I know I will have to list my assets. But do they really want to know everything I own? Do they care about silly things like pots and pans, or my xbox360, or fake house plants, or the family dog?

2. I will be up front and legit about everything, but will they send someone to my home looking for assets? I am really scared of some investigator looking in every nook and cranny in my house trying to find hidden assets.

3. My wife was pregnant but due to complications the dr. had to terminate the pregnancy. We want to have kids, but because we are in our mid 30's and don't want to longer as we get older. Should we wait to have a child? What should/can we do about the medicals bills accrued during the failed pregnancy?

Thank you for your response.

[MSbklawyer]

I'm going to see a bk lawyer next friday (Friday the 13th). All the debts are owed by me and I am unemployed. I live in northern california. I have some questions:

1. I know I will have to list my assets. But do they really want to know everything I own? Do they care about silly things like pots and pans, or my xbox360, or fake house plants, or the family dog?

2. I will be up front and legit about everything, but will they send someone to my home looking for assets? I am really scared of some investigator looking in every nook and cranny in my house trying to find hidden assets.

3. My wife was pregnant but due to complications the dr. had to terminate the pregnancy. We want to have kids, but because we are in our mid 30's and don't want to longer as we get older. Should we wait to have a child? What should/can we do about the medicals bills accrued during the failed pregnancy?

Thank you for your response.

1. You list categories of things for small items. In my clients' schedules I may put something like cookware/utinsels=$50; Household furniture/furnishings/appliances/electronics=$750. You don't have to get so specific as to say 1 2qt. boiler=$1; 3 frypans=$5. You need to put a value on everything, but it is very much a rough estimate and nobody really cares how many forks and knives you have in the drawer or how much change you might be able to dig out of the sofa.

2. I've never personally known a trustee to come looking at things unless things like land or buildings or expensive equipment was involved in the bk. I have heard that they do come visit your home in the Middle District of Florida, but I believe that's the exception and not the rule.

3. I wouldn't let bankruptcy influence that decision at all.

[justbroke]

They may actually stop looking in Florida. Florida finally has caselaw which allows the debtor to use the "unused homestead exemption" (which is $4,000 per debtor) even if they actually keep their home. For years, the Trustees have won the argument that "receiving the benefit of" the homestead exemption was the same as "keeping the home"... regardless of equity. Finally, someone fought them all the way to the District Court of Appeals and it is now clarified.

The problem with Florida was the very stingy wildcard of $1,000 per debtor. That amount was supposed to cover all your furnishings, clothing, appliances, etc. That is why Trustees almost always sent an appraiser because they figured there was no way a person had a 3,000 square foot home and only had $999 worth of "furnishings"! In most cases, they were right! Now, the debtor gets $5,000 unless they actually exempt some equity in their home.

Silly Trustees.

[MSbklawyer]

Only $4k homestead exemtion? Wow. Even Mississippi has $75K per household, and I thought that was stingy. I thought Florida, like Texas, had unlimited homestead.

[justbroke]

Homestead is unlimited, but the unused portion is only $4K.

[btbeme]

I'm going to see a bk lawyer next friday (Friday the 13th). All the debts are owed by me and I am unemployed. I live in northern california. I have some questions:

1. I know I will have to list my assets. But do they really want to know everything I own? Do they care about silly things like pots and pans, or my xbox360, or fake house plants, or the family dog?

2. I will be up front and legit about everything, but will they send someone to my home looking for assets? I am really scared of some investigator looking in every nook and cranny in my house trying to find hidden assets.

3. My wife was pregnant but due to complications the dr. had to terminate the pregnancy. We want to have kids, but because we are in our mid 30's and don't want to longer as we get older. Should we wait to have a child? What should/can we do about the medicals bills accrued during the failed pregnancy?

Thank you for your response.

1. List assets in some minor detail, grouping together like items. "Bedroom furnishings - $200" "Home electronics - $220". Use garage sale or ebay pricing to come up with your values. In truth, the Trustee does not want your sofa or your XBox. They just want to know if there is something of value, like a grand piano, that would fall outside a reasonable value. Also, this is part of the "smell test" that they use - does the file smell right? Does a person who made $150,000 a year until they lost their job really only furnish their place with a few milk crates and the college-style bricks and boards bookcase?

2. Upfront is important. Sometimes, though, unnecessary detail can bring suspicion. Don't worry about anyone peeking in the windows of scheduling a visit unless you give them reason to believe that you have something to hide. Your attorney should be able to tell you the level of detail the Trustees in your district are comfortable with in your disclosures. Be advised that they have access to data that would make your head spin...such as your insurance info. If you have a rider on your homeowners insurance for $15,000 in jewelry, you will get a question as to why you listed only costume jewelry worth $20 in your filing...and why you are wearing your Rolex Mariner to the 341. Likewise, if they ask for and see credit card purchases for $2200 in ammo six months ago, your filing had better list the appropriate firearm(s).

3. Medical bills are dischargeable in a bankruptcy. You have to list everything that you owe to anybody, so if these bills are not yet paid, you have to list them. However, there isn't anything that says you can't pay them after discharge, which may be important to your relationship with the doctor and/or hospital for future consideration. Waiting until you have a child won't gain you much at all if you already qualify to file Ch 7.

[JackBondLove]

1. You list categories of things for small items. In my clients' schedules I may put something like cookware/utinsels=$50; Household furniture/furnishings/appliances/electronics=$750. You don't have to get so specific as to say 1 2qt. boiler=$1; 3 frypans=$5. You need to put a value on everything, but it is very much a rough estimate and nobody really cares how many forks and knives you have in the drawer or how much change you might be able to dig out of the sofa.

2. I've never personally known a trustee to come looking at things unless things like land or buildings or expensive equipment was involved in the bk. I have heard that they do come visit your home in the Middle District of Florida, but I believe that's the exception and not the rule.

3. I wouldn't let bankruptcy influence that decision at all.

I listed *everything* in a spreadsheet with a sum for each section. Except for the big things like the house & car, and any liquid accounts (bank, IRA, etc.), my attorney just put down the sum, with a general listing of the items.

[JackBondLove]

We want to have kids, but because we are in our mid 30's and don't want to longer as we get older. Should we wait to have a child? What should/can we do about the medicals bills accrued during the failed pregnancy?

This brings up an interesting situation. What if a couple ran up CC debt for fertility treatments, then defaulted. Would that be considered fraud? Usually any debt incurred for medical procedures is not considered to be fraud, but that may be for those considered to be "medically necessary", which fertility treatments are not.

[mountanddo]

This brings up an interesting situation. What if a couple ran up CC debt for fertility treatments, then defaulted. Would that be considered fraud? Usually any debt incurred for medical procedures is not considered to be fraud, but that may be for those considered to be "medically necessary", which fertility treatments are not.

Well it's medically neccessary if you are unable to have a child without it. If you can have babies without fertility treatments but say want them just to get more babies maybe that might not be dischargeable. BUT hey, if Octomom can get fertility treatments while on welfare and have 8 babies as a result and not get them taken away....I wouldn't worry about it.