Make a Mistake??

[teerx79]

My attorney advised I get a replacement vehicle as I am not re-affirming the financed one. I opted to use a zero balance CC to buy car. Now, on here I am reading about allowable exemptions and obviously the $7500 value of this car is above the allowable for Florida in a chapt 13.

Question: Would the court or trustee take this car and sell it at auction?

[mom2three09]

So you're saying you bought a car using a CC?

How soon do you plan on filing?

ETA: I would think your first problem would lay with the fact that you used a CC to buy this vehicle. Secondly, the value and exemption part of it.

[justbroke]

Question: Would the court or trustee take this car and sell it at auction?

Yes.

Perhaps your attorney should have been clearer. I believe the attorney meant for you to purchase a car on credit, by getting a car loan! No matter how you slice this up, the Trustee is going to be interested in that car!

Since you paid with your credit card, you will also need to wait about 90 days since you purchased a "luxury" item with a credit card. (Luxury is really anything over $500.)

Here's the worse case scenario. You bought this car for $7,500 on a credit card. Assuming you have already used all your wildcard exemptions in Florida ($5K)... then the motor vehicle exemption would cover $1K of that car. The Trustee will be salivating over that $6,500 exposed because that is easily $1,400 for him if he sells it at $7,500.

Now, to make it worse, if you file within 90 days of having purchased the car.. the double whammy comes into affect. Not only will the Trustee seek to recover the money... the credit card company will file a non-dischargeability complaint because you purchased a luxury good within 90 days of filing! That means, no car, and you still have to pay for it.

Go back to your attorney.

[hereforinfo]

Did you actually think you could buy a car on a credit card, then file bankruptcy and discharge the debt and keep the car free and clear?

[Iwantmyname]

When they find something like this, they can make you produce all your spending for the last 2 years or more. I actually wonder if 90 days is long enough.

[justbroke]

When they find something like this, they can make you produce all your spending for the last 2 years or more. I actually wonder if 90 days is long enough.

The 90 days is irrelevant in this case. The 90 days is only for a non-dischargeability complaint.

The real problem is that the poster has an asset which is completely naked and exposed to the Trustee. (non-0exempt for the most part).

[AngelinaCatHub]

Not to blame the OP for ignorance as we were dumb as bricks. I blame her lawyer. At this time her lawyer should have given her a small mini lesson in what not to do. Did ours do this???? Hell no. One of my big complaints about lawyers. They think you should know what they do.

Now I am educated (due to this place), I dislike them even more now.

I believe the OP has dug a deep hole and that credit card deal will not do her well. I think she needs to go 13 at this point. Only my opinion. 'Hub

[teerx79]

I had filed Chap. 13 prior to getting this replacement vehicle for the one I am turning back. The credit card had zero balance when used for the purchase and not included with the BK. I was hoping to make payments to this creditor at the presumed rates.

My attorney has not returned phone calls nor emails with my questions about this and other issues.

As far as making a "dumb" mistake, the only education I have had is from the wonderful people in this forum sharing experiences and their knowlege. Now if you had a question about how to do CPR, Heimlich or other life saving procedures then this paramedic would be your expert. Thank you all for your input.

[justbroke]

I had filed Chap. 13 prior to getting this replacement vehicle for the one I am turning back.

I don't understand... you filed Chapter 13, then went and purchased the vehicle on a credit card?

The credit card had zero balance when used for the purchase and not included with the BK. I was hoping to make payments to this creditor at the presumed rates.

If you are not in a 100% Plan, you are not allowed to incur any new debt in a Chapter 13.

My attorney has not returned phone calls nor emails with my questions about this and other issues.

Sometimes... I hate them.

As far as making a "dumb" mistake, the only education I have had is from the wonderful people in this forum sharing experiences and their knowlege. Now if you had a question about how to do CPR, Heimlich or other life saving procedures then this paramedic would be your expert. Thank you all for your input.

Someone on this site told you to purchase a vehicle... after filing... using a credit card? I would really like to know where that information came from. It is a non-starter when it comes to incurring more debt right after filing. This is a no-no before discharge, and should not be done whether you're in a Chapter 13 or a Chapter 7.

I hope that you can see the shock that this is causing. Remember, not everyone on here are experts, and certainly many of us are laypeople (not lawyers). I can tell you this, though. The Moderators and certainly the folks with, ahem, thousands of posts, would certainly never tell you to acquire debt "after filing".

If you are really post-petition (have already filed), and you purchased the vehicle on a card after you filed, this could cause some issues. Have you had your 341 Meeting yet? Please call your attorney at least twice a day. if they don't get back to you this week (so long as your 341 Meeting isn't next week), go in there next week (to his/her office) and wait for him/her.

You really need to see what your next step should be.

(Now, my non-lawyer hat on. Your attorney would need to probably get this debt included as non-dischargeable. It would probably also need to go in as a secured debt, but this is so strange, they may just give it priority status. The problem is, that this is, in fact, a non-dischargeable debt. You will probably need to pay it within the Plan life. Now, the Trustee could get real frigid and ask for a dismissal, but I'm sure your lawyer can fix this for you.)

[teerx79]

I am paying back 100% over 60 months. If they want to see where my money has gone in the last 2 years I will be more than happy to present them with the $10k in lawyer fees from the divorce, that I have yet to re-coup anything back. Nor the federally required QDRO.

Courts and lawyers are such a joke. I spit on the US constitution and all the jerks that claim they stand behind it. From the joker in the white house all the way down to the slimey, greedy lawyers.

My attorney told me to buy the vehicle before the other one goes back. With what? I just wiped out emergency funds to pay his fees. I'm now thinking of rescinding the filing and they can all go to hell.

[justbroke]

I spit on the US constitution and all the jerks that claim they stand behind it. From the joker in the white house all the way down to the slimey, greedy lawyers.

Unfortunately, many people, including myself at one point, don't understand the difference between the laws and the Constitution. The Constitution is the governing document. However, many laws are made that actually contravene and sometimes outright violate the Constitution. We don't get those laws overturned unless and until someone makes a stand.

This is specifically why I'm kind of a vocal person when it comes to Stay Violations in Bankruptcy cases. We must stay on top of that particular issue because creditor get away with these violations daily. They won't stop until challenged.

I wish the best outcome for your case. Please let us know how it works out. Have you been able to even reach your attorney yet?

[teerx79]

These last 2 years have been the worst in my life. Being forced to deal with attorneys and the ridiculous money spent to no avail. I ended up filing a complaint with the Florida Bar against the divorce lawyer. It was tossed out as the Bar didn't see anything wrong with him withdrawing the motion of contempt(against the ex) and then asking me for an additional $2k to re-file the motion.

With the current BK attorney, I have phoned numerous times, documenting the dates, times and who I spoke with. Emails are the same. No interaction since I filed and paid him $1500. The creditor meeting is on Sept. 14 and I have no idea what is going to happen.

I pulled my credit report today, and all the debt that is joint with the ex (she was to refi thus the motion) has been listed as included in bankruptcy on payment plan. So she has possession of the property and apparently I am financially responsible.

I can't wait for the mortgage and HELOC get added.