Question Where to go.

[Argh!]

Unfortunately, I found my way here

From what I read, I think I qualify for Chapter 7, but wanted more input

Income ~32,000 (Starting in January 09, will get $500/month in a room I am renting out)

Debts
Mortgages First 91 (~ $720 a month)
Second 46 (~ $410 a month)

Home values, I will have to get an appraisal. A lot of short sales have went for under 100k, normal sales 120-160. What happens if I'm upside down? I want to keep my house.

2005 Honda Civic owe about $4200. ($200 month)

Student Loans ~44k ($200 month)

CC 56,000 (way too much a month)
Loan to parents 14k (0 a month, payments suspended till I get back on my feet)



I don't have any judgments, but I am often paying 29 days late.

Other assets
~2000 in stocks
~2100 in a loan owed to me

I know exactly how I got here, (unemployment, under-employment, should of sold house and moved when it was worth $225k, should have rented room out sooner, being 20-something and knowing everything...)

Anyhow I"m assuming this is Chapter 7?


Thanks in advance for any help or insight.

[biggomez777]

I'm going to assume that "loan to parents" is actually "loan FROM parents".

Being a lurker here for some time....get an attorney. Loans from parents, loans owed to you, wanting to keep a house you're upside down on...you are by no means a no asset CH7, or even a CH7 that I'd suggest doing pro se. Wanting to keep the house and the car makes me want to say Ch13, but so many of those fail that it might not be worth it. So...atty.

[Argh!]

I just checked the assessors site for my county and all the normal sales are around ~150-160, which makes me just about even in my house.

You are correct, I owe my parents, a friend owes me the $2k.

I planed on seeing an attorney, I just wanted to get a heads up of what to expect.

Thanks again for the help!

[boiler704]

depending on the state you should be able to keep both the house and car. stop paying on your cc's and don't pay your parents anything because the court will come after you if you do.

your income is fairly low for your expenses and i would try and file before getting a roommate because it will help show your expenses are higher.

[Argh!]

I live in Nevada, which I believe has a $150k homestead exemption. I also think the car limit is $15k.

Would I obtain the stock certificates and give them to the trustee? (Even though they have taken a major beating this year)

Thanks again for the help.

[JRScott]

It is likely you'll lose the stock, however I would not get the certificates yet, I"m not sure of Nevada's exemptions and there might be a way to exempt them if you have a sufficiently high enough wild card in the state.

If you file I'd probably aim to file before the first of the year and the additional income from the room renting out.

Keep in mind Student Loans cannot be discharged in a bankruptcy.

You will have to list the loan from your parents in the bk papers. However you could verbally agree to pay them back anyway. I would talk to them about it though so they know where you are. As another poster said do not pay them anything at this time, would be considered insider payments and the Trustee can go after.

As for home and car you could reaffirm those loans. Basically to do so you just have to prove they are not an undue burden, which requires you and your lawyer to assign the reaffirmation. Depending on Nevada law you might not need to reaffirm and possibly could do a ride through something you should ask the lawyer.

The monies owed you would also be considered an asset of the estate and its possible the Trustee will go after the person to claim that asset for disbursement. There is a place in the filing to list monies owed to you, you should list it there.

For your initial estimates you should have:

6 months of paystubs
Last 3 years of Tax Returns
Copies of all credit card bills for last month
Copies of all bank statements for the last month
copies of your mortgages
Copy of your auto loan
Copy(ies) of your student loans
If a written copy exists the copy of your debt to your parents.
Copies of utility bills for the last month
Estimates for Food/Clothing/Taxes/Gasoline etc.

Keep in mind also to keep the car and house in a Chapter 7 you would need to be current on them.

[Argh!]

You're allowed to pay someone back after the discharge? Isn't that a huge no-no?

Regarding the loan owed to me, will the person that owes me money simply pay the trustee under the terms of the loan?

Thanks again for the help!

[FloridaGuy]

You can always repay someone... even after the discharge of the BK. However, at that point it is voluntary. If the debt is discharged during the BK, you have no obligation to pay it back.

This assumes a Chapter 7 however.

[santadawg]

why can't he just not tell anyone that he owes his parents money, or that his friend owes him money. Just a thought----

[Tbornetun]

I wouldn't list either loan. I don't understand why so many think you have to go Ch 13 to keep houses and cars. It doesn't make sense. From the details given and without knowing the exeptions in Arizona, I still don't see a problem with filing Ch 7.

[AngelinaCatHub]

I wouldn't list either loan. I don't understand why so many think you have to go Ch 13 to keep houses and cars. It doesn't make sense. From the details given and without knowing the exeptions in Arizona, I still don't see a problem with filing Ch 7.