play it safe?

[floridian]

i had a harley repoed by a credit union.... i got a certified letter today, notifying me of a 7500 dollar deficiency on a 20k dollar debt....

they charged me 700 bucks to repo it and they didnt even come for it, i delivered it washed and polished to their office....

this credit union are sharks... i checked my small town docket and they have sued 20 people in the last 2 years...

anyway, they gave me five days to let them know what payments i can live with on the repayment of the 7500 at 7% interest deficiency... kind of suprised me that they worded it so mildly...(i had already given them my lawyers name and told them i was going to bk them)

so, what to do?.. even though i have paid my lawyer, hes seems set on taking a 13 and i wont accept it... at this point, im not even sure im going to file and be guaranteed misery....

since my pension is garnish proof, maybe i should try and deal with these blokes. as its a certain judgement if i let them sue me..

if so, should i let the lawyer talk to them are should i do it... how much should i offer them in payments to keep out of court?

[2Bshinyandnew]

i had a harley repoed by a credit union.... i got a certified letter today, notifying me of a 7500 dollar deficiency on a 20k dollar debt....

they charged me 700 bucks to repo it and they didnt even come for it, i delivered it washed and polished to their office....

this credit union are sharks... i checked my small town docket and they have sued 20 people in the last 2 years...

anyway, they gave me five days to let them know what payments i can live with on the repayment of the 7500 at 7% interest deficiency... kind of suprised me that they worded it so mildly...(i had already given them my lawyers name and told them i was going to bk them)

so, what to do?.. even though i have paid my lawyer, hes seems set on taking a 13 and i wont accept it... at this point, im not even sure im going to file and be guaranteed misery....

since my pension is garnish proof, maybe i should try and deal with these blokes. as its a certain judgement if i let them sue me..

if so, should i let the lawyer talk to them are should i do it... how much should i offer them in payments to keep out of court?

Can you put them off...tell them that, as they already know, you have retained an attorney and are in the process of organizing your BK, and if you give them any $$$ now, it may be seen as a preferential payment by the trustee and that will cause problems for them (not you, at least as far as your BK is concerned). Pre-BK 7 Preferential payments are a PIA for creditors. They may let you off the hook for now, or check in with you every so often.

Tough call.

[catleg]

If your pension is garnish proof why would you ever want to file a ch13 except to protect assets? It doesn't make sense.

I'd send them a letter offering to settle for 10 cents on the dollar.

[floridian]

i agree, i dont want to take a 13.. the only reason that im spooked by taking a judgement, is that i live in a small town and it will be the gossip of the year... i may be stuck here for a few years...how embarrassing! i guess i will have to get thick skinned...

i did take some advice from this forum and am being paid by paper check now, instead of direct bank deposit...

[catleg]

The only thing you have to fear is fear itself.

I think if I was in your shoes and the credit union sued me over that debt I'd be out there in front wearing a barrel and telling everyone including the newspapers about it.

Can you imagine how many others are cowering quietly in their homes over this kind of crap. It's time for us debtors to rise up and throw off our shackles. The wealthy have bled us dry and it's time for some social justice for a change.

[sassiebaz]

Why aren't you filing a chapter 7? Income too high or are you keeping your home?

[floridian]

Why aren't you filing a chapter 7? Income too high or are you keeping your home?

too much disposable income and my lawyer is not very creative...

[OKBK]

If you are under the means test, do they still look at everything and might consider you as having disposible income or no?

[floridian]

i am way under the means test, until you factor in my SS... then im 8k over the median income....SS still counts on the disposable income...

[2Bshinyandnew]

i am way under the means test, until you factor in my SS... then im 8k over the median income....SS still counts on the disposable income...

get married! (as my daughter would say, or rather text JKJKJKJK)

[catleg]

i am way under the means test, until you factor in my SS... then im 8k over the median income....SS still counts on the disposable income...

I think you may be getting bad advice from your lawyer ... check out this document on the US Trustee's website:

UST Policies for Chapter 13

Under pension and retirement income it specifically excludes social security from chapter 13 means test. Of course I am not a real lawyer but this looks like pretty solid information. I believe it's Unemployment that counts as disposable income, not social security.

[2Bshinyandnew]

I think you may be getting bad advice from your lawyer ... check out this document on the US Trustee's website:

UST Policies for Chapter 13

Under pension and retirement income it specifically excludes social security from chapter 13 means test. Of course I am not a real lawyer but this looks like pretty solid information. I believe it's Unemployment that counts as disposable income, not social security.

Looks pretty solid to me. I wonder why the attorney would say SS counts as disposable income It is specifically excluded on the means test

[floridian]

the lawyer said that after they stip off all my debt, i will be looking too good and they dont want that...

[floridian]

get married! (as my daughter would say, or rather text JKJKJKJK)

that would probably solve the problem... i have said, that my next marriage will be one of convienience rather than lust.... the lust goes away!

[2Bshinyandnew]

the lawyer said that after they stip off all my debt, i will be looking too good and they dont want that...

Floridian, IMO, I would get some further attorney's opnions. I mean, the BK code and exemptions are pretty clear. I realize that you want your means test to balance out a certain way, but, if SS earning are exempt, that means THEY ARE EXEMPT, right??

I have an IRA that is exempt and a hefty amount of equity in my homestead that is exempt, using your lawyers way of thinking, I too might look "too good" after discharging all my unsecured debt. Following that reasoning, the trustee could come along and say, hmmm. 2BShinyandnew has $100K equity in her homestead, if she just sold her house she could finance a 13, so lets push her into a 13 and make her sell her house. Of course a trustee cannot do that, right? Is income that is exempt from the means test any different than property or retirement plans that are exempt? Am I missing something?



It's worth another consult or two.