What Now?

[sisterfunkhaus]

Hi guys. I am back after a week long hiatus. Last Wednesday, I made the mistake of talking to a bill collector. There was a note on my door to call a number and I had no idea it was a bill collector. I already suffer from bipolar depression and it pushed me over the edge. I began having death thoughts. By Thursday, I was having suicidal fantasies and ended up in a psych ward. I just got out yesterday and started a day program today. My child is with my parents and I am safe with my husband. I did daycare for a living and am jobless now I HAVE to do the out patient program for 6 weeks so can't have a job. I can barely care for myself at this point. Work is the last thing on my mind now.

I wonder where this puts us with bk?? With me not working, we can't pay our house payment. I live in Texas. I wonder how long we have before they can boot us out? We are current now, but not for long. My insurance stinks so my psych meds will cost around $500 a month, plus co-pays. With groceries, electric, etc... that doesn't give us house payment money. My parents want us to live there with them so they can help me, dh, etc... I wonder if we should quickly sell our house to get some equity from it. We have quite a bit. If we move in with my parents they would need us to convert the garage into a room b/c thier house is small. If we did the conversion ourselves but we paid for materials (the carpet, window a/c unit, heater)in our name would it be seen as a loan or payment to them? We also would need to buy a shed to store extra stuff.

We are seeing our second BK attorney next week but was hoping to get some insight since our situation is so different now.

[susie]

I don't have answers to your questions, but I just wanted to offer a virtual hug and say that I am so glad you got the help you need. Take gentle care of yourself, and know that you are not alone.

[SinkingFast]

I am glad for you, Sister, that you got the help you need.

I don't know what to tell you about your thoughts for your house.

If you sell the house within 1 year of filing BK, the Trustee is most likely gonna ask you what you did with the proceeds from the sale. "Living expenses" is an acceptable reason. But I'm not sure how the Trustee would react if you explained you remodeled your folks home to live there.

Personally, I understand it. Your folks want to help but simply don't have the space for you and your family. Remodeling would help you in the long run by you not having to pay a mortgage or rent payment.

At the same time, if your house were sold by the Court as part of your BK, that's potentially money the Trustee could have siezed for the benefit of your Creditors. Remodeling your folks home could be interpreted as "improving their homestead" for the benefit of your parents.

This is something you definitely wanna ask attnys as you Consult with them. Tell them your idea and see what they have to say.

[GoingDown]

Hi guys. I am back after a week long hiatus. Last Wednesday, I made the mistake of talking to a bill collector. There was a note on my door to call a number and I had no idea it was a bill collector.

This is an alarming and disturbing new trend in debt collection.

I've even heard of the collection agents coming to the front door and having face to face confrontations with debtors.

Sometimes they come to the front door and ask about potential assets and even take pictures.

In this case I would send them a letter by certified mail with a full Cease and Desist demand, not just a limited C & D regarding phone calls. Tell them in the letter that you demand they cease and desist from any communication with you by any means whatsoever.

And then go see a bankruptcy attorney and start the preparations to file bk.

[HHM]

This is an alarming and disturbing new trend in debt collection.

I've even heard of the collection agents coming to the front door and having face to face confrontations with debtors.

Sometimes they come to the front door and ask about potential assets and even take pictures.

In this case I would send them a letter by certified mail with a full Cease and Desist demand, not just a limited C & D regarding phone calls. Tell them in the letter that you demand they cease and desist from any communication with you by any means whatsoever.

And then go see a bankruptcy attorney and start the preparations to file bk.

Actually, it's not a new trend, this is how they did in the old days...1970's and earlier. But I agree, it is a troubling tactic, but at the same time, it is not illegal. I suppose if it rises to the level of harassment and or stalking, you might be able to do something about it, but it rarely gets to that level.

I agree with the course of action, send a cease and desist.

[Spartan]

I am glad for you, Sister, that you got the help you need.

I don't know what to tell you about your thoughts for your house.

If you sell the house within 1 year of filing BK, the Trustee is most likely gonna ask you what you did with the proceeds from the sale. "Living expenses" is an acceptable reason. But I'm not sure how the Trustee would react if you explained you remodeled your folks home to live there.

Personally, I understand it. Your folks want to help but simply don't have the space for you and your family. Remodeling would help you in the long run by you not having to pay a mortgage or rent payment.

At the same time, if your house were sold by the Court as part of your BK, that's potentially money the Trustee could have siezed for the benefit of your Creditors. Remodeling your folks home could be interpreted as "improving their homestead" for the benefit of your parents.

This is something you definitely wanna ask attnys as you Consult with them. Tell them your idea and see what they have to say.

Shouldn't the proceed from the sale be considered exempted for an x period of time? Assuming that their equity is protected by exemption.

If I remember correctly, the exempt period is 1 year. If so, they would be protected. It is worth looking into.

[keepmine]

Tx. has some very generous bk protections. ALl the equity in your home is exempt-even 6 months after a sale.

http://www.thebankruptcysite.com/bankruptcy-exemptions/texas.php

See a couple of lawyers. Everything will work out.

[silturbo]

hope everything comes out ok, sister =)

[sisterfunkhaus]

We wouldn't actually do the remodeling so to speak. The room is dry walled. We would buy a heating/ ac unit that we could remove that would be an asset. We would carpet it, which could techinically be a remodel, but we could also consider it an asset that is removable when we leave. My parents are willing to foot the bill for the paint and what not, but we would need to buy cabinets. Everything we would buy would be things we could take--like assests. Nothing we purrchased would be attached to their home. It sounds like there could be a ray of hope.

Does anyone know if the equity in our house would be counted as income in the means test? We are just trying to figure out what to do now that I am jobless and needing psych treatment. I would imagine that a good sum will go to meds, co-pays, and several thousand in dental work we need. I also have to have my daughter in daycare while I go to my out patient treatments. I just can't believe circumstances changed so fast for us. This has been so awful.


I really didn't know bill collectors would do stuff like that. He was AWFUL. I told him I had mental issues and spent $350 a month on meds and it seemed to fuel him on.

[sisterfunkhaus]

I don't know if anyone is up for interpreting this. The law says equity is protected for 6 months after the sale if no other property is purchased. Does this mean we can sell now, file in 3 months and if we haven't bought anything else we are good. Or, would it mean we file now, sell after discharge and our equity is protected for 6 motnhs after that? I know it's a crap shoot, I'm just looking for a wild guess.

I know I'll get more answers at our attornies meeting Friday. I KNOW I need to relax. Unfortunately though we still have to deal with this stuff even with my mental status.