Help with exemptions

[crashzx]

I am thinking of filing 7. My wife is freaking out on the house. We are current with the payments and have about 10,000 equity. We also have 2 minor children. We have a truck that is current as well (with 8 months left for pay-off) and I use a motorcycle as my transpotation (my company gives me a vehicle to go to and from work only). It is paid for and both combined are worth about 6500. My question is the dept we are wanting to file on is ALL unsecured or partialy secured (stuff we bought at the respective stores that issued the cards). She does not want to loose the house and I dont want to loose the transportation. We need these to function in society. Would these be exemp in TN law?? Another note its all in my name except the house that is in both.

[crashzx]

I am not trying to complicate things by being "attatched" to the vehicles but just dont think I will have the resources or credit to get them back.

[justbroke]

For Tennessee...

Is your home titled as Tenants by the Entireties? If not, only $7,500 of that is protected if you both file the bankruptcy petition jointly. If you are TBE, then if tthey are joint debts, then the TBE exemption won't work. Figure that only $7,500 of the home equity is exempt. I would get try to get a real estimate on the value from a reliable source (Realtor maybe?).

All of your schoolbooks, pictures, portraits, clothing & storage containers, and one bible are exempt.

Everything else (furniture, electronics and even your cars) have to fit into the $4K wildcard exemption.

[crashzx]

Honestly....what do they do...come in your house and go through everything and tell you what they are going to take?? If so how do I know it is coming, an appointment.

The bus does not appeal to me at all...since there is none where i live. just taxi's. Cant afford those.

What about stripping the bike and saying it needs repairs that I can not afford??? That would make it worth about 500.00 bucks?? What about my tools? I work on bikes and have alot of spray gun equipment also. Are they gone too and how would they know I had them. There is no paper trail on any of them.

[justbroke]

Honestly....what do they do...come in your house and go through everything and tell you what they are going to take?? If so how do I know it is coming, an appointment.

No. usually, the Trustee is only interested in big items... over $2,000 in value. So the cars look juicy... so does your equity!

What about stripping the bike and saying it needs repairs that I can not afford???

To purposefully hide property of the bankruptcy estate is not a good thing. Stripping the bike to reduce its value, would be "hiding" property of the estate (value). It could be considered fraud.

That would make it worth about 500.00 bucks?? What about my tools? I work on bikes and have alot of spray gun equipment also. Are they gone too and how would they know I had them. There is no paper trail on any of them.

If they are tools of the Trade, then you can use a Tools of Trade exemption!

[crashzx]

Honestly how would they know the differance!!!!!! I did crash it last year in Dec. I am not affraid of them. The law can be bent a little.

[justbroke]

I can't condone bending it even a little. If you are one of the "lucky" ones to get audited, you may have more explaining to do than you want to.

I know that the hardest part of a Chapter 7 Liquidation, is the actual liquidation part. For most people, some 90% or more, they are no-asset cases and have nothing to liquidate, so Chapter 7 is easier on them. However, I probably won't ever understand why anyone would risk losing the chance to shed $100K in debt, by hiding $2K in assets.

[crashzx]

I can't condone bending it even a little. If you are one of the "lucky" ones to get audited, you may have more explaining to do than you want to.

I know that the hardest part of a Chapter 7 Liquidation, is the actual liquidation part. For most people, some 90% or more, they are no-asset cases and have nothing to liquidate, so Chapter 7 is easier on them. However, I probably won't ever understand why anyone would risk losing the chance to shed $100K in debt, by hiding $2K in assets.

Thats my whole deal...I dont want to shed 100K in dept just the 30k of unsecured.

[justbroke]

Thats my whole deal...I dont want to shed 100K in dept just the 30k of unsecured.

And you don't think losing $2K worth of equity is worth no longer being liable for $30K? The $100K number was anecdotal and was in no way a point at which I would consider it "worth it".

[crashzx]

Yea I know...I have come to grips with loosing the bike because it is the only thing that does not have a lein on it. I am in the buissness so it can be replaced.....as long as they dont take my tools.

[justbroke]

Yea I know...I have come to grips with loosing the bike because it is the only thing that does not have a lein on it. I am in the buissness so it can be replaced.....as long as they dont take my tools.

I'm sure your tools of the trade can be exempted. Who knows, the Trustee may not even want the bike.