I have a knot in my stomach.

[runninfree]

Hello everyone. I think I have this figured out but I'm shaking and I just need to talk it through. I am planning on filing a Chap. 7 within the next 90 days.

I am getting divorced and have 2 small children. The Mr. moved out and decided that his love would be support enough for the children. He refused to sign a child support/divorce agreement and refused to help financially. At first it seemed like I could keep living check to check and just wait for things to get better.

I have a good job almost $52,000 a year, little CC debt $3000, fairly low payment on a $119,000 mortgage, SL Debt $110,000 (to secure good job, almost regret it), and a car note, $488 only had about 11 months. I have no other assets worth mentioning. Then you figure heating, groceries, gas, daycare, life, health, and car insurance, clothing, and any essentials and it gets tight. I am afraid to spend money on groceries because I don't know what may come up later. I don't have cable and am working towards cutting back on the other things I was used to doing (taking the kids to movies, outings, eating out). They are hard habits to change.

The tipping point was that I found out that I was being sued by an insurance company for an accident that was determined not to be my fault. Until...I filed a complaint against the responding officer. All of a sudden I "stated" that it was my fault. It was not and I did not. They were close to getting a judgement when I found out about it.

Now my job wants to move me to another state (I am not opposed to moving for various reasons), but I can't afford the house here, rent there, etc. The job there is permanent.

I think I need to file, but the timing frightens me. I am now 32 days behind on the car and everything else is current. If I move I will need a rental. If I stop paying, my credit (which is now decent) will be shot. I haven't saved enough to put several months down. I will need a car because I cannot afford this one and do not plan to keep it. I anticipate a tax refund with child tax credits.

Currently, my plan is to use a CapONE blank check to get a gently used vehicle ($10,000-$12,000)with low mileage and low payment. Nothing fancy. I also want to have the rental agency run my credit now to be approved. I'm afraid of what it will be like after. I plan on using my tax refund to pay a few months rent and moving expenses...oh and my son needs his cavities filled to the tune of about $700. I don't want to spend it all, but I don't want to waste it either. I am anticipating being able to use the federal exemptions. Are these things allowable? My brother says I am wasting money trying to secure a car because they will take it in the bk.

I plan to buy the car, surrender this car, get my tax refund, spend it on what I will need after or exempt it to pay the car off after. Am I on the right track?

I know there are people with much worse situations than me, because I have steady income, but I'm suddenly financing a two income household on one income and I can't keep it up.

[JackBondLove]

You can force your to-be-ex-husband to pay child support via the divorce decree.

You need to fight the car accident in court. What documentation do they have of you saying the accident was your fault? The police officer's report? If it is verbal, that can be overturned by a written statement - or a statement in court. In any case, you can fight the police report in court as well. You may have given some information about the accident that the police officer took into consideration and determined that you must have been at fault. If that is the basis of the accident report, you will need to go to court and fight that. However, your chances of winning there are probably slim, since officers are trained in traffic law, and what you think is not at fault probably is indeed at fault.

Will your employer pay for your move, including the cost of selling your home? You can always say that you can't afford to move because you already have a home and would need assistance to do so. (In this horrid job market, companies are much more likely to hire someone else rather than pay for the move of an employee.) Of course, this may put you on the layoff list.

Pay for your son's dental work now - there is not a trustee in the world that would have a problem with that.

You can buy the car - and no, it wouldn't be taken in BK, mainly because there would be no equity in it! You may need to sign a reaffirmation of the car note to continue to have the car.

One plan of action could be to buy the new car and take the job in the new area, then stop making payments on, and make a fair attempt to sell, the old house and the old car, filing for BK afterwards, which will wipe out any debt except for the student loan (which you never, EVER get rid of.) You didn't say that you were upside down on the house or car, but if so, you could advertise the price as being the loan values - and then when it doesn't sell, you just give them up in BK.

About your old car, why do you want to get rid of it? It would be easier to just keep it and reaffirm the note on that then to buy a new car and reaffirm that.

[runninfree]

Thank you JackBondLove, for your reply. Here is some clarification.

I haven't had the money to file for divorce yet. I did file in court for child support almost 6 months ago. Still waiting.

I went to court on the accident. The attorney refused to give me copies of anything including the complaint. I asked the judge for a continuance so that I could send her Inquiries and file a Motion for Discovery. She got huffy and later told me how she never loses and the officer was willing to come to court and testify, especially after "what I did to him". When I called the police to obtain a police report 4 years ago they told me there wasn't one. I didn't give any information at the scene other than she ran the light. The officer who responded kept me, my passenger, and 2 small children at the scene for over two hours. Initially, I didn't think anyone was hurt and declined the ambulance ride. Firefighters looked at the children and said they seemed ok. Shortly after they left, my son started dozing off and it scared me. I asked the officer how much longer because I did now want to go to the hospital to have him looked at. He became verbally abusive, and said he was busy writing me a ticket for running the light because "that's what he heard happened." I stated that I did not run the light and he said he'd get back to me when he was done. I called 311 to speak to a supervisor and they dispatched a fire truck. The officer came running towards us with his hand on his sidearm and yelling that we were going to jail for filing a false police report or reporting an accident when they were on scene. I just asked to speak to a supervisor and I did explain that there were officers on scene. I later filed a complaint against the officer.

They will not pay moving expenses. The way it was sold to me was it is a permanent position, guaranteed. It is a government job. I am not behind or upside down on anything except now, the 1 payment on the car.

The old car was bought with my husband's financial help in mind. I don't have that anymore and it costs me about $700 a month all told. Way too expensive. I would like to get a car that would be affordable for me.

[btbeme]

Some thoughts...

- Get going on the move. Securing a roof over your head is important, and having good credit will help that. Be aware that being in a rental when filing Ch 7 can involve an extra step or two, which we can help you with when you get there.

- Get reliable transportation you can afford. Using a credit card check is a bit dicey, since it will be treated as a cash advance by the BK court and will therefore have to sit awhile (6-12 months) before you could realistically file without a problem. Others here can fill you in on the specifics, but be careful.

- Once you have a roof and a car, do the move. If you do not pay your mortgage, you can bank that amount toward allowable expenses. Are you upside down on the house or do you have equity? Who is on the deed? Need more info here to give better advice...

- Do the fillings when you can, ASAP. Its OK to make payments if the dentist will accept them. Anything left to pay when you file will be discharged (but that doesn't mean you can't pay the dentist back afterwards if you wish).

- A judgement from a civil suit can be discharged in BK, usually. There are exceptions, so I'd give you the blanket answer of "ask an experienced BK attorney..or two.. or three" to get a better understanding of what your best strategy would be.

- Where are you moving? You would most likely have to file using Illinois exemptions and rules.

[runninfree]

Thank you btbeme, I hadn't considered being more careful about the source of the loan. And due to the lawsuit I can't wait that long. I was approved by roadloans too, at 14.99% while CapONE was 8.6%. But ifI am planning on keeping/paying the advance/car loan, it isn't an issue right?

I am not upside down, there is no equity, and I am the only one on the note.

I was going to use my tax refund to pay for the dentist and moving expenses.

I am waiting for a start date. I am moving to Nevada.

[df04527]

I want to just add that if you are already 32 days late on that car payment, and it reports to the credit bureaus, your credit could already be in trouble and if it isn't by now -- it could be shortly. Most companies report in to the bureaus on a regular schedule -- my advise is to move quick on anything you need credit for.

[ValleYum]

Some thoughts...


- Get reliable transportation you can afford. Using a credit card check is a bit dicey, since it will be treated as a cash advance by the BK court and will therefore have to sit awhile (6-12 months) before you could realistically file without a problem. Others here can fill you in on the specifics, but be careful.

Not being disrespectful, I think there is a touch of confusion here.

The Cap One blank check is not a cash advance check from their credit card - it is just their brand name for an auto loan that you take in hand already pre-approved to an auto dealer. USAA has a similar program and it is a regular secured installment loan. With the ~5% difference in interest rates, I would definitely go with Capital One over Roadloans. You just need to make sure that they have about 4-6 weeks from the time you buy before you file BK so that they can get your lien perfected.

Edited to Add: Please check with your attorney, too, as they can advise you best!

[IamOld]

runninfree - first my best wishes to you. As a parent I cannot see how any man would not want to help his kids - but that's neither here nor there.

I think Jackbond Valleyum, etc gave you great advice.

Now, regarding your issue with the cop and the lawsuit - I'm not surprised - they're "testilieing" - the cop did something wrong and the system is covering up for them...do you have a lawyer for that?

It sounds like the move and the bk will let you start life anew!!! Indeed, if you KNOW you're moving, get your rental now, and stop paying the mort if you are 100000% certain you will be moving!

But as Valleyum stated - make sure you speak to the BK atty!!!!! first!!!

[daylate]

Just a clarification on which exemptions you will need to use. There has been a court case that says Illinois exemptions are intended only for Illinois residents. If this is now precedent you would be eligible to use federal exemptions because you won't have lived in nevada for 2 years prior to filing. Check out this site
http://exemptionsexpress.com/Alabama_to_Missouri.html It shows which state's exemption you would use or federal if you are moving. Good luck.

And of course, check with your attorney.

[LadyInTheRed]

.

- Where are you moving? You would most likely have to file using Illinois exemptions and rules.

Yes, she will use either IL or Federal Exemptions. But, if she files after she moves, which seems to make sense, she will file in Nevada and local court rules will apply.

[btbeme]

The Cap One blank check is not a cash advance check from their credit card - it is just their brand name for an auto loan that you take in hand already pre-approved to an auto dealer.

See why this forum is great? Everyone learns something, every day! My apologies for the misunderstanding. I am getting pretty unfamiliar with what is being offered out there credit-wise since my liberation from the bondage of such.

As far as the vehicle - if this is a separate loan aside from a credit card obligation, I'd think that it could work just fine. Since the auto loan and the auto would have about the same value, I'd venture to guess that this purchase (as many people have already experienced) would be just fine. Two precautions, for sure... Make sure the loan is perfected before filing (or the Trustee will surely grab the car); and I would seriously consider reaffirming the loan (though reaffirmation goes against every bone in my body).

On the house - if you would receive nothing from selling it, my first advice would be to stop payments and just walk away. Your personal liability (getting sued, getting hit with taxes, etc) is washed away in the Ch 7 discharge. A precaution - this would be an expensive mistake should your Ch 7 NOT get discharged, so I would strongly encourage using a good attorney when you file rather than doing a pro se filing. Just my advice, for what it s worth.

Before you do anything, though - move, stop paying, buy a car, etc - I'd get a good thumbnail sketch from a good BK attorney for a "roadmap" of sorts, just to make sure that you stay between the lines. Then, you can start to put away those mortgage checks and lay the groundwork for a new life in Nevada!

[AngelinaCat]

On the lawsuit:

If the suit goes through and you are unsuccessful at defending yourself regarding this traffic accident, you may end up with a judgment that is non-dischargeable. I hope you have a good attorney helping you with this. In reading through this older thread, it seems like this is turning into a 'He said, she said' situation, and it appears there is no evidence to back you up--or at least none that you can get. This is why I said I hope you have a good attorney helping you.

[runninfree]

Why do you say non-dischargeable? It was a straight auto accident. No drinking or anything involved.