Hi guys, what's ur opinion for my case? (kinda long)

[Iamsoindebt]

So here's my sad story

20k installment loan (approved in late 2004)
30k installment loan(co signed and approved in mid 2005)
30k credit card (start using card in 2002)
10k credit line (started using in 2005)
10k credit card started using in 2004 (a notice of discontinuation was sent to me?)
5k still owed after surrendering a vehicle(leased in 2006 for only 5 months)this is the only one with a judgement
5k private school loan in judgement mode(they were unwilling to defer this type of loan)

Started working and paying taxes in 2000, quit my job in 2005. 2002-2005 averaged about 30k per year. Made under 10k during 2000-2001 each

Was unable to come up with money for bankruptcy until this summer. Since I quit my job I have went back to school. (2006-present) I still have two more years left in my school. During this time I have amounted nearly 60k in debt (50k from government, 10k from private)

I do have a Toyota subcompact 2008, which I(with family money) purchased(needed for school)in winter of 2008 second hand. It is fully paid for. Kbb still rates it as 11k. The title is under my name but I still need it for school.


Basically, I was nonchalant when I had credit, always buying stuff, then I needed installment loans to help pay off credit card and boom = uncontrolled debt. Worst thing was I still leased a car in 2006, after I quit my job so I can use it for school. I barely lasted 5 months before I surrendered it. Until my toyota subcompact I drove a old van until it broke down. I've also dragged my relative into it by asking for cosign for a installment loan so I could pay off my credit card debt.(when mine wasn't enough) Biggest mistakes ever.

I really want to start my life over again. I am about to finish school and want to start a family. My future career is stable but it isn't a career as a doctor.

Aside from my Toyota I have absolutely no assets. My one checking account was frozen long time ago and closed. (I had like 5 bucks) I still technically living with my parents though I dorm at school.

I just want to know if I'm doomed, any insights, and if you were my lawyer - would u be able to handle my case.

Thanks so much for your time and patience in reading my material.

[mrskal]

Are you about to finish school, or finish school in two years? You said 2 different things.

[Iamsoindebt]

Are you about to finish school, or finish school in two years? You said 2 different things.

sorry yea in 2 years. i just feel that after 4 years of school 2 years left is "almost done" for me heh

[mrskal]

Well, I am new to this, but you probably need to post what state you are in.

[Iamsoindebt]

Well, I am new to this, but you probably need to post what state you are in.

updated profile i'm in new york city

[Exployer1234]

I am guessing you are considering a chapter 7. If your car is paid for and books for 11K and you are over your state exceptions the trustee could 'take" the car to pay your creditors. You can make a deal to pay the trustee for the car.

Student loans can not be discharged in BK, but if you are in school you should not have to pay on the loans. You need to check with your lender that has started a judgement mode. In your contract it should say whether payments have to be made while in school.

All unsecured debt can be wiped away in a chapter 7, except the student loans.

depending on what state you are in will determine what the going rate is for a lawyer. Anywhere from 1200-3000 is the going rate for a lawyer.

Also if you have any money remaining from your student loan if it is over the state exemptions the trustee can take that money and pay creditors. Student loans are not exempt, so therefore the money can be taken if you are over your state exemptions.

Example if you live at home or in a dorm and you state only allows you to have 4000 dollars in assets, and there is a wild card that can be used for 1500, then you still have to much equity in your car. Thus your trustee could take the car and sell it to pay your creditors. Some states only allow you to have 600 in your checking account.

I will also give you another example. When I did my BK I had to wait about 4 months from receiving my student loan check, because I was 3000 over my state exemptions.

When I filed Bk I had 100 dollars over my state exemptions and this was fine with my trustee. I had about 2500 in cash and my car booked at 1000 (due to having a rebuilt title). I also had to factor my dollar amount for my cloths and household items that were considered mine. When I filed I had 4100 in assets and therefore I was fine. If I had filed with 7000 in assets I would be required to give the trustee my cash and various other items he could sell to pay my creditors.

I hope this helps.

[BobMango]

You may have some trouble protecting the value of the car. It really depends on what state you are in, whether federal exemptions are available and what other assets you need to protect.

How much of that debt is student loans? These are generally not dischargeable. From what you wrote it looks like you have about $105K in credit card/installment debt and $65K in student loans?

[Iamsoindebt]

Topic: excess student loans

Really! - any excess in student loans is up for grabs by the trustee? During these last few years in school I have been relying on it to survive - food, rent(I don't dorm within school, it's out of campus private rent) I basically get excess of 3k per semester, a total of 6k per year. These are generally from the stafford loans, after the grants cover the tuition.

I don't have any accounts, so I never placed them into a bank account. The excess student loans come in check form - I bring it to it's originator bank and cash it out for a fee.

Will the trustee be tracking the amount of student loans i get in excess? They are allowed to take student loans from students to pay for stuff?

Aside from this problem - I do understand student loans don't get discharged. It's well worth the price of education. (Even though I made huge mistakes in my first year by borrowing from 3 private lendors)

Topic: Car

Isn't there a way to protect a vehicle? Is reaffirmation only for cars that are being financed or leased?


Once again, thanks for everyone for help. Yes, currently I have about 105k in secured debt and 65k in student loans.

[Exployer1234]

Here is NY state exemptions

http://www.bankruptcyaction.com/nyexemptions.htm

New York Bankruptcy Exemptions - NY Bankruptcy Exemptions

Only State Exemptions are Allowed

New York Bankruptcy Exemptions

Homestead ($100,000 per married couple)
$50,000*
The family bible, family pictures, and school books used by the judgment debtor or in the family
$5,000
Household pets

$450
Wearing apparel, household furniture, one mechanical, gas or electric refrigerator, one radio receiver, one television set, crockery, tableware and cooking utensils necessary for the judgment debtor and the family
$5,000
Wedding ring, a watch not exceeding thirty-five dollars in value
$5,000
Motor vehicle
$2,400
Tools of trade
$5.000

All necessary food actually provided for the use of the judgment debtor or his family for sixty days


* Cash for debtor not claiming homestead, $2,500;
NOTE: These are the major bankruptcy exemptions.
Check with your bankruptcy lawyer for a full exemptions list.


Homesteads:

The exemption for a homestead is limited to $125,000 if the property was acquired within the previous 1215 day (3.3 years). The cap is not applicable to any interest transferred from a debtor's previous principal residence (which was acquired prior to the beginning of such 1215-day period) ;
The value of the state homestead exemption is reduced by any addition to the value brought about on account of a disposition of nonexempt property made by the debtor (made with the intent to hinder, delay, or defraud creditors) during the 10 years prior to the bankruptcy filing.
An absolute $125,000 homestead cap applies if either:
the court determines that the debtor has beeen convicted of a felony demonstrating that the filing of the case was a abuse of the provision of the Bankruptcy Code; or
the debtor owes a debt arising from a violation of federal or state securities laws, fiduciary fraud, racketeering, or crimes or intentional torts that caused serious bodily injury or death in the preceeding 5 years. NOTE: This limitation is inapplicable if the homestead property is "reasonably necessary for the support of the debtor and any dependent of the debtor."
The state you use for your exemptions is:

The state you lived in for the 730 days (2 years) before filing; or
If you did not live in a single state in the previous 2 years you use the state where you lived the majority of the 180 period preceding the 2 year period; or
If the preceding renders you ineligible for any exemptions then the debtor is allowed to choose the federal exemptions.
Pension Plans exempt from seizure:

Employee contributions to ERISA qualified retirement plans, deferred compensation plans, tax-deferred annuities, and health insurance plans.

Education Funds exempt from seizure:

Funds placed in an educational retirement account or qualified State tuition programs at least 365 days prior to a bankruptcy filing, within the limits established by the Internal Revenue Code, and for the benefit of a child or grandchild of the debtor, are excluded from the debtor's estate, with a $5,000 limit on funds contributed between one and two years before the filing.


Now from what I am seeing from your exemptions it boils down to this:
From what I am seeing the value your vehicle is over state exemptions. There does not appear to be a wild card exemption. The educational fund has a 5000 dollar limit, but this would be a fund that is set aside for your schooling. You would need to check with an attorney, because student loans are not classified as an educational retirement fund or a state tuition program. Student loans are considered loans to pay for everyday expenses, but they are not exempt from being taking in a BK case.

If you car is valued at 11K you are over the state exemptions and the car would be used for the trustee to pay your creditors. You can not reaffirm a debt on a car unless it is being financed. Since you own the car it is 100% equity and is considered an asset. Now since you have equity in the car that means that you are above the state exemptions and even the cash you have on hand can be considered an overage, which is far game for the trustee to use to pay your bills.

My advice is speak with attorneys on what state exemptions you are able to use and what you need to do to keep your car. You may have to pay the trustee for the car.

[Exployer1234]

May I ask what exactly is the Toyota you have? What KBB list the car as and the actual value may be different.

My car still list on KBB for 3800, but you have to take into account milage and condition on the car. Just because it is listed as 11K does not mean that is the actual value it would sell at.

[mrskal]

I think another issue is going to be the debt with the co-signer. They will still be on the hook for it, not sure how that works though.

[Iamsoindebt]

May I ask what exactly is the Toyota you have? What KBB list the car as and the actual value may be different.

My car still list on KBB for 3800, but you have to take into account milage and condition on the car. Just because it is listed as 11K does not mean that is the actual value it would sell at.

thanks for the above post research.

BIG question: Since I don't have a job.........would the trustee even let me "pay" for the remaining value of the car in monthly payments?

it's a Toyota Yaris, kbb "retail" price list it as nearly 12k.

There's dings and scratches everywhere, so at Private Party "Good Value" it's around 10k. At Excellent value it's in the high end of 10k

I have around 25k on the car. Clear title. Bought it in september of 2008

But the trustee won't care much about this information? Just the brand, model, and mileage correct?

Also I have a question about pets...... I have a small dog, a Yorkie(popular breed) She's 5 years old. Would the trustee or in nyc (Marshall can come knocking at my parents door, since I am technically living here) sell her(trustee) or kidnap her(marshall)??

thanks again for your help!

[Iamsoindebt]

I think another issue is going to be the debt with the co-signer. They will still be on the hook for it, not sure how that works though.

yea one of the worst things is to pull family into it. =(

[mrskal]

No they will not take your dog, unless, maybe it is a show dog worth a lot of money.

[Exployer1234]

The trustee will normally not pull a dog from a home, unless you have a top show dog you are using to breed. I think you are safe that no one will take your dog. I have three Shar pei's and the trustee did not look twice at my animals.

The trade-in value on the car in excellent condition is 8500 for an excellent condition and about 7900 for good, and 6900 for fair. The trustee will not be able to sell the car for 12K. The car would be sold at a private auction or to a whole seller. I would check with your attorney, but if I had to sell the car in my area it would sell in a private sell I would sell it for 7500 to 8500. Now what I would do is check around your area to see what the car is actually selling for. Since Toyota had all the issues Toyota is not holding it's resale value as it has in the past. I would look around at used car lots and even take your car to a dealer to see what they value your car as. Even if you have to act interested in buying a car you should not have to fill any paperwork out to see what trade-in deal they will give you.