Assets Exceeding Exemptions in Ch7 - Buyouts

[bcohen]

It's definitely a generational thing. If you're in your twenties, it's not even an option. A smart phone is a bare necessity, like food and shelter. You would cut off your power before you cutoff your smart phone.

Nah. I am not much older than that (31) and I wouldn't want a "smartphone" if it was free. I have never viewed a phone as anything other than a device to make and receive calls and retrieve voice mail messages, and believe that the "smartest" phone is one which sounds good and works properly. I can't for the life of me understand why some people like to send texts, emails, and view a crappy low-res version of some websites on their phone. I used to have a standard "dumb" cellphone, but I decided to cancel it and go back to a landline several years ago. I am happy with a home phone, and will NEVER buy or own another cellphone unless it is required for my job and 100% paid by the employer.

That being said, the mere fact that so many people view the latest "iProduct" as a necessity on the level of food or clothing indicates the sad state of our country today. People need to get used to deflating wages and incomes, and one of the ways to keep costs down is by eliminating unnecessary gadgets--especially those which have dubious value as anything other than a status symbol. With all its high costs, necessary but un-included accessories, and monthly fees, an iPhone or iPad can't compare to even a 10-year old laptop. And yet the sheeple keep on buying them. Mostly on credit, of course.

[despritfreya]

Not sure how this thread got to the topic of spending $$ on a non-necessity of a "smart phone" -whatever that is but. . . Comments like that of bcohen are right on the mark. Consumers, especially the 20-somethings, have been taken for such a ride its is quite amusing. How gullible can people be to think that something that makes billions in profits for big business and serves nothing more being a mere convenience to the little guy is a "bare necessity".

Marketing/advertising has surely done its job. Why would anyone stand on line for hours just to purchase a new gadget, one that will be obsolete in, what, a year? How much do you pay/month for your “bare necessity”? I'll bet it is a lot more than the $25/month I pay for my old style no-big-deal telephone.

It is ok to spend on "toys" but don't buy into the commercial propaganda that the "toy" is a necessity. Consumers did just fine before the advent of cell phones. In fact, there was a day when pagers (bet the 20-somethings don't even know what that is) were only to be used by those we now call "first responders" and doctors delivering babies.

And, yes, the idea that a toy based in technology is a “necessity” is generational and, in there lies the problem.

Just my 2 cents - for whatever that is worth.

Des.

[Tater]

I had a smart phone, a Blackberry, a couple of years ago. I got it free on an upgrade and I absolutely hated it. Plus, I had to pay an additional $30 per month for internet service that I rarely used on it. When I did need the dang thing, it never worked properly. I traded it in a couple of times when it was under warranty. Finally, before the warranty expired, I just got a basic phone and the service is much better.

[SkyeOwl]

Sometimes it isn't possible to do a Ch13. We had been trying for a Ch13, even though the pre-filing credit counselor went to said that with our income and outgo, that we were better suited to a Ch7. When I lost my FT job, then we had no choice but to file a Ch7.

Because we were over our exemptions, we were ruled an Asset Case. In our case, the three automobiles and the real property were formally 'Abandoned Interest' in by the trustee, because they "were either too old, or fully-encumbered by mortgages, and/or exemptions".

For the other things, the trustee offered us a chance to purchase back our non-exempt items from the BK Estate, before he posted them for auction. As most of these were some family heirlooms, and 'Hub's computers ('tools of the trade' is not allowed in Florida), we jumped at the chance. The trustee offered an amount that was discounted, with no interest, for 12 monthly payments. We were able to afford this and so so took the deal. Our payments were $450.00 a month, making a total of $5400.00. As I said, the trustee gave us a discount, as our overage was 6K.

I hope that helps.

Angelina, was your discharge delayed by 12 months since you were paying the trustee?

[AngelinaCat]

Angelina, was your discharge delayed by 12 months since you were paying the trustee?

No it wasn't, though our Close was delayed because of it. The Discharge was delayed, because when the trustee decided that our case was an Asset case, he added another 60 days for creditors to file their objections. This pushed our Discharge date from the middle of April 2008, to mid-June. When that came and went with no news, we waited some more. 'Hub finally called our caseworker at the courthouse on August 13. Our attorney was MIA by then.

We learned that the lack of a copy of our Marriage License in our file was the hold-up. We had taken it with us, as instructed, to our 341. But when we tried to give it to the trustee, he said he didn't need it. Well, the file did. Once that was scanned and emailed to the caseworker, we were discharged that very day.

I hope that helps.

[SkyeOwl]

Thank you! It did help.