A rock in a hard place!!! Need advice!!!

[SMinGA]

Median income is based on family size & state. CA is about $64.6k per year for a family of 2. $79.2k for a family of 4.

If you are slightly over, a ch. 7 could be possible depending on your expenses. If you are significantly over, you are almost certainly looking at ch. 13.

[drestless]

Median income is based on family size & state. CA is about $64.6k per year for a family of 2. $79.2k for a family of 4.

If you are slightly over, a ch. 7 could be possible depending on your expenses. If you are significantly over, you are almost certainly looking at ch. 13.

I'm seeing Chapter 13 for me...

[drestless]

I'm not sure if I can ask this but any suggestions of a good BK atty in Riverside, CA district? Somebody who u've dealt with and had a positive result.

Or maybe an online resrource that provideds the "good" BK attys?

I need to setup an apointment so on top of my knowledge here I can be adviced on what else I can do to prepare....

[blockhead]

I'm seeing Chapter 13 for me...

I was 50K over median, got audited by UST, and they were OK with it. It just depends on your allowable expenses (like a high mortgage payment for example)

[drestless]

I was 50K over median, got audited by UST, and they were OK with it. It just depends on your allowable expenses (like a high mortgage payment for example)

Got it so I still have a fighting chance for chapter 7. Couple of questions come to play:
1. How do I protect my house, specifically equity? I will still continue paying the mortgage.
2. How do I protect my truck, specifically the equity? Same comment as item 1.
3. How can I protect two of my other cars that are payed off?

Thank you so much.

[LadyInTheRed]

Got it so I still have a fighting chance for chapter 7. Couple of questions come to play:
1. How do I protect my house, specifically equity? I will still continue paying the mortgage.
2. How do I protect my truck, specifically the equity? Same comment as item 1.
3. How can I protect two of my other cars that are payed off?

Thank you so much.

The answer to all 3 questions is that you protect your assets with exemptions. California has two exemptions systems. Start by reviewing the two systems at http://www.thebankruptcysite.org/exe...alifornia.html

But some of those figures were updated in April to match the Consumer Price Index. See adjustments at: http://www.courtinfo.ca.gov/forms/do...exemptions.pdf
System 1 is on the first page and System 2 on the second.

Most exemtions are listed in the second link, but not all. For instance, it does not show the System 1 homestead exemption, probably because it isn't adjusted according the the CPI.

If you have less than $22,075 in equity in your home, you will probably want to use System 2. System 2 allows you to exempt $3,525 in equity in one car. You can then use what is left of the $22,075 homestead exemption plus the $1,175 wildcard to exempt the other vehicles.

If you have more equity in your home, you would use System 1 to protect $50,000 of equity if you live alone or $75,000 if you live with family members who do not have another homestead. But, system 1 only gives a $2,725 exemption for a car and no wildcard exemption. Unused homestead exemption cannot be used for other property if you use system 1.

If you have property you can't exempt in a Chap 7, you either have to turn it over to the trustee or buy it from the trustee.

If you can't buy it from the trustee but want to keep it, you would have to file a Chap 13 with a plan that pays at least the value of the non-exempt property to unsecured creditors.

[LadyInTheRed]

Oh yeah, about the truck that you are still paying off, the equity would need to be exempted as described above and:

If you file a Chap 7, you'd have to reafirm the loan to be sure the lender won't reposses the vehicle after the discharge. You can also keep paying on the loan and hope they don't repossess the truck, but my understanding is that if you don't reaffirm auto lenders often will reposses the vehicle after discharge even if you keep making payments.

In a 13, the truck would be paid off before the end of your plan, either by the trustee from your plan payments or directly by you to the lender.

[blockhead]

but my understanding is that if you don't reaffirm auto lenders often will reposses the vehicle after discharge even if you keep making payments.


I think that depends on state law - in some states the auto lender can't reposess for non-monetary default

[drestless]

Im back. I'm currently receiving letters from some of my lenders that if I don't pay that they may do the following:
1. sell the loan to a collection againcy.
2. escalate to their debt colletions.
3. retain a lawyer to file a lawsuit.

What do I do at this point? How much time do I have before they will sue? or are they going to sue?

Thank you much guys and thank you for all your help in this thread for me.

[ccsjoe]

Hi drestless,

I wasn't here yet at the time of your initial postings, but from what I gathered your two main problems were: Over the median and asset exemption, correct?

If so, problem #1 should not be a problem unless your numbers on Schedules I vs. J provide too much discretionary. Like you, I am in CA, well over median by 17K, and filed 7 no problem.

Problem #2 asset exemption, you need to determine what equity you have in what assets that needs to be exempted, then look at CA's exemption systems. As previously mentioned, CA has 2 exemption systems.

If I'm missing the mark on your concerns, let us know and we'll dig deeper! I'll read back some more to get familiar with your debt load/mix and situation, but maybe a summarized update on your part couldn't hurt. Also, a summary of assets and their value for purposes of exemptions couldn't hurt either...and while at it, your expense and income listing to see whether J passes muster.

[drestless]

Hi drestless,

I wasn't here yet at the time of your initial postings, but from what I gathered your two main problems were: Over the median and asset exemption, correct?

If so, problem #1 should not be a problem unless your numbers on Schedules I vs. J provide too much discretionary. Like you, I am in CA, well over median by 17K, and filed 7 no problem.

Problem #2 asset exemption, you need to determine what equity you have in what assets that needs to be exempted, then look at CA's exemption systems. As previously mentioned, CA has 2 exemption systems.

If I'm missing the mark on your concerns, let us know and we'll dig deeper! I'll read back some more to get familiar with your debt load/mix and situation, but maybe a summarized update on your part couldn't hurt. Also, a summary of assets and their value for purposes of exemptions couldn't hurt either...and while at it, your expense and income listing to see whether J passes muster.

Hi cssjoe,

Yes those two are my primary concerns, Here's my updated financials to further explain my ordeal:

Unsecured debt: $39,000 through credit cards and $20,000 that I personally owe through family members.
Secured debt: $50,000 for two vehicles, $335K for new house.
Asset: $500 Supra
Earnings: $120,000 combined annually.

Not really much to list. In addition here's the inquiry that I have from my previous post.
"I'm currently receiving letters from some of my lenders that if I don't pay that they may do the following:
1. sell the loan to a collection againcy.
2. escalate to their debt colletions.
3. retain a lawyer to file a lawsuit.

What do I do at this point? How much time do I have before they will sue? or are they going to sue?"

Thank you so much.

[LadyInTheRed]

The letters are meant to scare you into paying. It's impossible to know when your creditor's will sue. If they do 1 or 2, you'll just be dealing with different people trying to collect the debt. If they do #3, you will probably get a letter from the lawyer before they file suit. Once you are served with a lawsuit, it will take over a month for them to get a judgement and you can drag it out longer by filing a response.

For now, you should consult with a few BK attorneys if you haven't already, get your financial documents in order and make sure you have cash available to pay an attorney so that if you do get sued, you'll be ready to file BK before they get a judgment.

[drestless]

Hello,

I ignored the letter, now I received a voicemail saying that she is from a law firm but in the end she said, "this call is from a debt collector. Looks like the creditor hired a law firm debt collector. What do I do at this point? Are they going to pursue me now?

Thank you for all the advice.

[frogger]

Hello,

I ignored the letter, now I received a voicemail saying that she is from a law firm but in the end she said, "this call is from a debt collector. Looks like the creditor hired a law firm debt collector. What do I do at this point? Are they going to pursue me now?

Thank you for all the advice.

Just another step known as the process of collections. You can bet that she is not a lawyer, but a paid minion of a law firm that either has been assigned the account or outright purchased it for pennies on the dollar.

What do you do now?

Perhaps a better question is what do you want to do now.

Are they going to pursue you now?

That is another step in the process of collections. They may indeed pursue you. And then on the other hand, they may not.

Circle the wagons, protect the women and children, and don't give out any information to help them with their efforts. If they do pursue you, make them work for it.