Worried I can't do a 7

[oopsnow]

I bought the NOLO Chapter 7 book today and have scanned the info on having a house/property. Now I'm not sure if I can do the 7. We own a place in Texas-paid for-and my daughter lives there-doesn't pay rent. We live in, and have lived in, Georga since 2007. Work brought us and I still work there. We do plan to return when I retire. How will this effect the Chapter 7? Will the trustee sell it to pay our debt?, is there a way to keep this from happening? It is worth about $80,000, and that is about what I owe in CC debt. Any advise?, any points I have missed or misinterpreted? Thanks.

[despritfreya]

Glad to see that you posted your question here. As I mentioned on the other discussion board. . .

If you cannot protect the TX property and/or the Timeshare and you do not want to lose them to a Chapter 7 Trustee, you will most likely be filing a Chapter 13. A Chapter 13 allows you to keep non-exempt property so long as you pay the value of the non exempt asset to your unsecured creditors over the life of your Plan. Please note, however, if you owe $$ on the Timeshare it is unlikely the Court will allow you to keep the "toy" in the Chapter 13 as you would be diverting $$ from your creditors to do so, (unless you are doing a 100% repayment).

So, if there is no exemption to cover the Tx property and you file a 7, the 7 Trustee WILL sell it since that is his/her job.

You need to consult with one or more attnys to determine what is best for you.

Des.

[LadyInTheRed]

If you have a non-exempt asset worth $80,000, your minimum payment in a 60 month plan will be over $13K, or, if less, your total unsecured debt, plus trustee fees, attorney fees and required payments on secured debt divided by 60. Can you afford that?

Why not have your daughter start paying enough rent to allow you to make minimum payments on your credit card debt and pay your other living expenses? Then, after you retire, move back to your home in Texas and file a homestead declaration. If you still have too much debt, file BK after you've lived in Texas long enough to take advantage of the unlimited homestead exemption. That will probably be 2 years. If you are retired, your income will likely be exempt from collection and the TX homestead exemption will prevent an enforceable judgment lien from being placed on your home. Wages are also exempt from collection in TX. So, even if you get a job, you could easily go 2 years without paying your debts. Even if creditors get judgments against you, they won't be able to collect and you can deal with the judgments in BK when you finally file.

Don't take my word for all of this. It's never too early to consult with a BK attorney. You may want to consult with attorneys in both GA and TX.

[oopsnow]

Thank you for your advise. My daughter is unable to pay rent as she works minimum wage and not full time. She is trying to start another line of work and waiting for it to take off. Due to my age-65-I'm not sure I can get a job in Texas if I move back. My husband is the other concern. He has his family-daughter, SIL, granddaughter-living near us and can spend time with them denied for too many years. I will talk to lawyers in GA-don't know if I will have access to any in Texas-and get some input. The water is getting merkier as I try to get my ducks in a row. Thank you all for the advise.

[btbeme]

To get your ducks in a row you need an attorney. And a good one.

You will file in GA because that is where you live. You would file under GA law.

The property in TX is an asset, which the Trustee will most likely seize and sell, regardless of who lives there. As stated before, that is their job.

Now, your primary concern should be about YOU and keeping what YOU need to have a life post-BK. Even though that means you may have to break the bad news to your daughter in TX (living rent-free), I strongly recommend that you speak with some proven attorneys - proven by experience in these matters - one that has a track record in differentiating Ch 7 from Ch 13 cases. Explore CH 13. If keeping the TX land is critical to you, it may be your only hope. No guarantee, but your best hope.

[oopsnow]

Are you saying that my total payback over the 60 month plan would be $17k?, using the figures in your reply, making it, roughly $300 a payment? Or am I misunderstanding. Part of the $80,000. are timeshares that I really would like to get out from under.

[keepmine]

Are you saying that my total payback over the 60 month plan would be $17k?, using the figures in your reply, making it, roughly $300 a payment? Or am I misunderstanding. Part of the $80,000. are timeshares that I really would like to get out from under.

That's only part of what she's saying. The bk code says, a creditor can't receive less in a chapter 7 than they'd have gotten in a 13. As we keep trying to tell you, the house in Tx. is at risk if you file in Ga.Does not matter which chapter you file.
You really better get yourself to an attorney and run some numbers and see what your exposure may be.

[LadyInTheRed]

Are you saying that my total payback over the 60 month plan would be $17k?, using the figures in your reply, making it, roughly $300 a payment? Or am I misunderstanding. Part of the $80,000. are timeshares that I really would like to get out from under.

I meant to say that if you have 80,000 in non-exempt equity in the TX property, your plan payment will be over 3,333 a month in a five year plan. But now you are saying 80,000 includes the value of timeshares. Whatever the value of the TX property you want to keep, add trustee and attorney fees and divixe by 60 to determine the minimum monthly payment in a 5 year plan if you want to keep the property. There may be other factors,y like other non-exempt assets, that will make the payment even higher.

[keepmine]

Think ya got a typo Lady. Should be $1333.
That's what I was driving at. Odds are, the OP is going to be in a 100% payback plan that may be unaffordable.
From the first post in the thread, she says the equity in the home and the amount of debt she wants to discharge {another post she says this includes the timeshares} are about equal.

[LadyInTheRed]

Think ya got a typo Lady. Should be $1333.
That's what I was driving at. Odds are, the OP is going to be in a 100% payback plan that may be unaffordable.
From the first post in the thread, she says the equity in the home and the amount of debt she wants to discharge {another post she says this includes the timeshares} are about equal.

Yes, that's typo number 2 on the same dollar amount. The hazards of posting from my phone. Thanks for the correction, keepmine. I agree with your analysis, based on the limited info we have anyway.