Selling A Car Before Filing Chapter7 But After Being Served By CC Company

[deedeecfl]

I have a friend in Florida who was just served with papers for a delinquent CC over $5k. After losing his job about 3 years ago, some bones in his feet collapsed and he was placed on federal full disability since he can no longer walk or stand. He has had no health coverage in the past 3 years until just recently when he and his wife were approved for medicaid. He gets maybe $1700 a month but his mortgage takes $1100 per month (for another 15 years or so). His wife brings home only about $400 month because she has Stage 3 colon cancer and is currently receiving chemo. They have two cars currently -- the first is paid off (maybe worth $5k to $6K) and the second he owes about $10K. He is in a wheelchair and cannot get out of the house to go to MD appointments without assistance because there are steps to his house. In addition, he needs a wheelchair lift for the vehicle that they owe money on. He had been considering selling the first vehicle to put in the medically necessary items in the second car and the house but now he has been served. Can he do anything at this point with the first car? He has no extra money or assets to cover the cost of even the Chapter 7 at this time or an attorney to respond to the summons. How do you think a trustee would respond to the car being sold and the funds being directed to the Chapter 7 filing and medical improvements? Would a deposit into an IRA be acceptable? They have no retirement pensions to count on. They are pretty distraught at this point since both lost good jobs in the last few years and their salaries were downsized because of it. They've spent any savings they had in trying to keep their heads above water. I'm pretty sure they have more creditors coming their way, including medical bills. Any thoughts?

[tobee43]

first, my heart goes out to your friends.

we are in the middle district in florida. you don't say where they are, (which really makes no difference) , but really they should go see a BK atty ASAP. they free consults, also many do cases on a pro bono basis, meaning they don't have to pay. from what you saying i think they would qualify for that type of legal asst.

it also sounds that they are judgement proof, as they have no assets for the creditors to come after. you didn't mention if they own their own, because if they do, that's a different story. (not knowing if they are underwater on their home, renting or what). you really need a full picture to see what would be the best for their situation. also their county may have legal aid.

at the very least....encourage them to get to those free consults and i wish them the best of luck and i will be praying for them. since i understand too well about having this all consuming cancer in their souls, at this point they need all their energies to go into getting better, not worrying themselves about these bills.

[deedeecfl]

They're in middle district Florida too. The only asset they really have is the first car that is paid off. They would want to keep their home and it is very much under water. They had a 15 year mortgage with a higher payment and Chase finally brought their mortgage payment down somewhat but kept them at a 15 year term. So by using the home exemption combined with their personal exemptions, the paid-off car would appear to be fair game but they could really use the proceeds to put in the wheelchair ramp and lift. I am trying to get them go to an attorney but they have been hit so hard by first their own multiple unemployments over the past 3 years, this his disability and now her Stage 3 cancer. My friends and I are trying to get them to seek some legal assistance but they are somewhat numb from everything. We'll continue to try, however. Thanks, Tobee!

[tobee43]

They're in middle district Florida too. The only asset they really have is the first car that is paid off. They would want to keep their home and it is very much under water. They had a 15 year mortgage with a higher payment and Chase finally brought their mortgage payment down somewhat but kept them at a 15 year term. So by using the home exemption combined with their personal exemptions, the paid-off car would appear to be fair game but they could really use the proceeds to put in the wheelchair ramp and lift. I am trying to get them go to an attorney but they have been hit so hard by first their own multiple unemployments over the past 3 years, this his disability and now her Stage 3 cancer. My friends and I are trying to get them to seek some legal assistance but they are somewhat numb from everything. We'll continue to try, however. Thanks, Tobee!

you are wonderful friends. please don't give up on them they need you more now than ever. if they just talk to a FREE consult atty i am certain they will be put at ease. also, maybe you can see if there are legal services in their county and call yourself on their behalf. some of the atty's will come to the house.

your most welcome. if they can just get to some help real legal help, i'm sure they will be ok.