Few Bankruptcy Q's...

[debtfree09]

I am making sure that I cover all bases before I file, I have consulted an attorney and he told me to wait until after I receive my tax refund. I am married but will be filing single, and I have had all of my debts since late 2005 when I lost my lucrative paying job. I am barely squeaking by the means test, as me and my wife combined for right at $50K last year. My only true debt as of now that is current is my vehicle.

My question is, if you are forced into filing a chapter 13, doesn't that take years to complete, let alone re-build your credit? I owe about $5500 on my car, but it is only worth $3500 according to KBB, will I only be held responsible for the $3500 after my decision, and will the judge lower my 10% APR I am being charged on the car?

Also, I have about $5000 left in a savings account that is used per semester for school, how does the trustee see that? If you don't list all of your bank accounts, how can they find out?

[HHM]

Well, which chapter did your attorney say you could file?

What state do you live in? Presumptively, if you are below your states median income for your size household, then you will most likely be in a chapter 7.

A chapter 13 is no more than 60 months, and by no means is it a bad thing, doing a chapter 13 is certainly better than doing nothing. At the end of 60 months, you are OUT of debt. If you could get yourself out of debt in 60 months on your own, you wouldn't be contemplating BK. People always make the mistake of comparing a chapter 7 and a chapter 13, that is the wrong comparison, you compare a chapter 13 relative to doing nothing (or other non-BK options).

For the car, the judge does not touch the interest rate. If the car loan is older than 910 days (i.e. 2 years), you can reduce the principal amount owed on the car to the current market value of the car and pay that new principal balance thru the chap. 13 plan.

Unless your state has a cash or wild card exemption, the $5,000 cash in the savings account is toast. You will need to spend that money before you file BK. Same goes for any tax refund, that is why your attorney is telling you to file taxes before filing BK.

[debtfree09]

Well, which chapter did your attorney say you could file?

What state do you live in. Presumptively, if you are below your states median income for your size household, then you will most likely be in a chapter 7.

A chapter 13 is no more than 60 months, and by no means is it a bad thing, doing a chapter 13 is certainly better than doing nothing. At the end of 60 months, you are OUT of debt. If you could get yourself out of debt in 60 months on your own, you wouldn't be contemplating BK. People always make the mistake of comparing a chapter 7 and a chapter 13, that is the wrong comparison, you compare a chapter 13 relative to doing nothing (or other non-BK options).

For the car, the judge does not touch the interest rate. If the car loan is older than 910 days (i.e. 2 years), you can reduce the principal amount owed on the car to the current market value of the car.

Unless your state has a cash or wild card exemption, the $5,000 cash in the savings account is toast. You will need to spend that money before you file BK. Same goes for any tax refund, that is why your attorney is telling you to file taxes before filing BK.

How do they know what bank accounts you currently have?

I am in Florida, and I don't think they have any exemptions on money in accounts. I actually just ran my credit, and I owe about $20K.

[AngelinaCatHub]

Well, which chapter did your attorney say you could file?

What state do you live in. Presumptively, if you are below your states median income for your size household, then you will most likely be in a chapter 7.

A chapter 13 is no more than 60 months, and by no means is it a bad thing, doing a chapter 13 is certainly better than doing nothing. At the end of 60 months, you are OUT of debt. If you could get yourself out of debt in 60 months on your own, you wouldn't be contemplating BK. People always make the mistake of comparing a chapter 7 and a chapter 13, that is the wrong comparison, you compare a chapter 13 relative to doing nothing (or other non-BK options).

For the car, the judge does not touch the interest rate. If the car loan is older than 910 days (i.e. 2 years), you can reduce the principal amount owed on the car to the current market value of the car.

Unless your state has a cash or wild card exemption, the $5,000 cash in the savings account is toast. You will need to spend that money before you file BK. Same goes for any tax refund, that is why your attorney is telling you to file taxes before filing BK.

[Trixie007]

How do they know what bank accounts you currently have?

You have to list all your bank accounts, and sign under penalty of perjury that you've included all assets.

[debtfree09]

?

Unless your state has a cash or wild card exemption, the $5,000 cash in the savings account is toast. You will need to spend that money before you file BK. Same goes for any tax refund, that is why your attorney is telling you to file taxes before filing BK.

I ended up having to move to a different state before I was able to file. I am now thinking about doing it pro-se. As to your response about me having the excess money in my account, how long should I wait to file after taking the cash out of my account?