Which way to we turn?

[eddiep]

Do you have to pay back all the debt that you have or do they take off some of what you owe when you file Chapter 13?

We have an appointment next Sat to talk with a lawyer

What you owe really does not matter in a ch 13. They take what you can afford to pay and it has nothing to do with what you owe.

it boils down to income minus all expenses (food, clothes, mortgage/rent, utilities, medical expenses etc) what ever left over is your disposible monthly income.

If you are under median income you would be in a 3 year plan, over median a 5 year plan.

[jade73]

Homestead

44-13-100 - Real or personal property, including co-op, used as a residence, up to $10,000 (up to $20,000 if married whether the spouse is filing or not). Unused portion up to $5,000 may be applied to any other property.

So if we owe $93,000, which we do, $20,000 will be exempt meaning what?

[jade73]

it boils down to income minus all expenses (food, clothes, mortgage/rent, utilities, medical expenses etc) what ever left over is your disposible monthly income.

So is there a set on what a typical family of 4 spends on food or do they go by what you tell them you spend weekly?

[eddiep]

So if we owe $93,000, which we do, $20,000 will be exempt meaning what?

how much is it worth? It is the difference between what you owe and what it is worth. so if the house is worth 100,000 and you owe 93,000 you will need to protect the 7,000 equity. If the house is worth 93,000 or less you do not have equity so you do not need to exempt it.

[eddiep]

So is there a set on what a typical family of 4 spends on food or do they go by what you tell them you spend weekly?

there are national standards that they go by. But if you exceed the standard, like if you have alot of medical expenses, you can claim what you actually spend as long as you have proof.

Here is a link to the national standards, scroll down the page to #2, 3 & 4

http://www.usdoj.gov/ust/eo/bapcpa/20090315/meanstesting.htm

[jade73]

how much is it worth? It is the difference between what you owe and what it is worth. so if the house is worth 100,000 and you owe 93,000 you will need to protect the 7,000 equity. If the house is worth 93,000 or less you do not have equity so you do not need to exempt it.

Who will determine how much its worth? Do we have to get an appraisal?

[eddiep]

I had a real estate agent come to my house to do a market analysis for free. That is what I am going by for my estimate. If the trustee questions the value it will be up to him to have it appriased. there are online places like Zillow.com too.

[Naomi]

Naomi

In your post you mentioned keeping hubby's truck. I just wanted to remind you that you will need to exempt any equity you have in it. so you said you owe $9k, but if it is worth $15k you will need to exempt the $6k equity you have. I know most people do not have any equity if there is a loan, but you never know and you will want to be prepared for that possibility.

It's a 2004 (bought in 2002 for 16,000) KBB is showing about 7,300/6800 for excellent/good...so we should be ok.

[jade73]

I had a real estate agent come to my house to do a market analysis for free. That is what I am going by for my estimate. If the trustee questions the value it will be up to him to have it appriased. there are online places like Zillow.com too.

We've had our house on the market since Feb and our agent has it listed @ 99,900, thats paying off what we owe and her getting her share. We owe about 93,000

[eddiep]

Then that is the value of your home. Ask your agent if the value has changed at all since you had it listed, and whatever the difference is if it is still valued at 99,900 you will have to use the homestead exemption of $6,900. So since you are not using the entire 20k for you home exemption you can use the unsued portion up to 5k for other items.

[eddiep]

It's a 2004 (bought in 2002 for 16,000) KBB is showing about 7,300/6800 for excellent/good...so we should be ok.

Yeah since you have no equity you will not have to exempt it. It will be an expense and not an asset. Which is good you will be able to save your exemptions for other items.

[lrprn]

So since you are not using the entire 20k for you home exemption you can use the unsued portion up to 5k for other items.

Be very careful here - moving 'leftover' exemption dollars into other exemption categories is not allowed in every state.

Frankly, most states do *not* allow unused portions of exemptions to be used outside their designated category. For example, leftover exemption $$ from the household exemption can't be used to protect a car or other belongings.

Every filer really needs to examine their state's bk exemptions carefully or ask their lawyer to see if they can use leftover exemption $$ outside their designated categories. I know our state does *not* allow this.

[eddiep]

Be very careful here - moving 'leftover' exemption dollars into other exemption categories is not allowed in every state.

Frankly, most states do *not* allow unused portions of exemptions to be used outside their designated category. For example, leftover exemption $$ from the household exemption can't be used to protect a car or other belongings.

Every filer really needs to examine their state's bk exemptions carefully or ask their lawyer to see if they can use leftover exemption $$ outside their designated categories. I know our state does *not* allow this.

Right, every state has their own exemption amounts and rules but from the GA list of exemptions you are allowed to use the unused portion of the homestead exemption up to 5k

This list of exemptions updated January 2009. All law references are to Official Code of Georgia Annotated unless otherwise noted. Federal bankruptcy exemptions are not available in Georgia.

Homestead

44-13-100 - Real or personal property, including co-op, used as a residence, up to $10,000 (up to $20,000 if married whether the spouse is filing or not). Unused portion up to $5,000 may be applied to any other property.

Personal Property

44-13-100 - Motor vehicles up to $3,500; clothing, household goods, appliances, furnishings, books, musical instruments, animals, and crops up to $300 per item and $5,000 total; jewelry up to $500; health aids; lost future earnings recoveries needed for support up to $7,500; personal injury recoveries up to $10,000; wrongful death recoveries needed for support; burial plot in lieu of homestead. Also, any property up to $600 plus any unused homestead amount up to $5,000.

[lrprn]

Right, every state has their own exemption amounts and rules but from the GA list of exemptions you are allowed to use the unused portion of the homestead exemption up to 5k.

Eddie, I posted what I did so that other forum members that don't live in states that allow this practice won't be confused and think their state will allow this as well.

What you posted was correct for the OP in GA - thanks!

[eddiep]

Sorry, didn't mean to be a jerk, I just didn't want to confuse the OP either