Question Do I need to file BK?

[TampaGirl]

I am broke, and have no assets (i think). My home which i/we purchased 6.5 years ago is going into bankruptcy any day now. We owe ~#360K and it's worth much less. We have medical bills (~$3000), credit cards (~$30K). our income is less than $600 month - we just qualified for food stamps ($500/mo). Hubby lost job about 1.5 years ago. commissioned sales jobs keeping us afloat - but loosing ground quick.

Assets: We have 2 toyota's 2005, one 2007 Sportster HD motorcycle, one small boat and trailer, all of which are paid for. My mother purchased a $20,000 pre-paid college fund for my 11 year old son about 3 years ago but are in my name on behalf of my son.

If i do not file bankruptcy - thus keep my cars, motorcycle, and most importantly my son's prepaid college fund. What is the worse that can happen.
As it stands now, i don't even have money to file BK let alone move my family.

any advice? much appreciated.

TampaGirl

[Aledrell]

It all depends on your states exemptions but in my state you could count on losing the motorcycle and boat for sure. I would not be as concerned about the college fund, because if it is set up properly then it what's known as spindlefund trust as long no money has been added to it withing I think 2yrs should be good. Although if you don't have people suing you, and have judgements don't hurry to file. Stay in your house rent free as long as you can and save your money. Even after trustee sale/auction they still have to technically evict you.

[LadyInTheRed]

Filing may be premature. If you file bankruptcy, but still don't have sufficient income to pay your living expense, you could wind up in debt again without the option to file BK.

It sounds like you are a custodian or trustee on the college fund and it can be used only for your son's education. If that's true, the account is safe.

Florida bankruptcy exemptions are at http://www.thebankruptcysite.org/exe...s/florida.html.

They aren't very generous. The trustee can take whatever you can't exempt and sell it to pay your creditors. That doesn't necessarily mean he/she will. Somebody with experience in your district may be able to give you a better idea of what the trustee(s) there might do. You can buy your non-exempt assets from the trustee, but it sounds like you don't have a way to do that. That's another reason why filing now may not be a good idea.

If you haven't already, stop using credit cards and consider not paying them anymore if that means not being able to pay for your basic needs. The creditor's will start calling. Read the "collections" forum for advice on how to deal with them.

That's my 2 cents based on the info you've provided. I'm sure you'll get more input.

Welcome to the board! Hang in there. There are lots of people here to give you advice and support.

[TampaGirl]

broke

Thank you so very much for your advice and your compassion. sometimes A kind word makes it better for just a little while.

[minan]

TampaGirl: Just know you are not alone. I'd use this forum to get me through the day because I have filed and am struggling with all the emotions that come with making this decision.

I come here every day (on weekends, several times when I start feeling bad). I've learned more than I ever thought and hopefully it will get easier.

[TampaGirl]

What if i do not file BK? What are the implications? I have one company that has filed a suit case against me. What does this mean?

thanks for any information you can offer.

TampaGirl
Tampa FL

[minan]

Read the COLLECTIONS section of this forum.

Probably one of the major benefits of bk is the Automatic Stay. This means that all creditors have to stop any collections activity, lawsuits, garnishments, etc....without BK, this does not exist. The harrassing phones calls, letters, summons, etc...will continue...

I was only 30 days late and the phone calls started. By the time I got up to 60 days, I was getting 30+ calls a day. I only noticed yesterday that my phone doesn't ring constantly anymore so I'm betting that slowly all my creditors are learning I filed bk. I even got 2 letters from one creditor saying they closed my credit card because they were notified I filed bk.

I would talk to an atty. BK lawyers almost always offer free consultations, meet a minimum of 3 (I saw 4) and ask your questions. You can get plenty of information during these consults.

Use this forum. I learned alot on here before I finally made the decision to file.

[TampaGirl]

Minan,
thanks for your advice. The unknown is the worse of it, isn't it. We'll get through this. I really appreciate this forum. I've learn a lot lurking over the last couple of days.

thanks again,
TampaGirl