Question 04 Car Repo'd Today - YEah !!! 30 phone calls a day & Laid Off

[Texian]

HELP!!!! I am in Texas


I have made the choice to learn more about what my next steps are.

the 04 is a Isuzu -not in business anymore - needed 3500 engine work and brakes,behind on payments was told the payoff was 10k, tried to find a buyer the past 2mos to sell ...it is only worth 3950 at best has over 108k..have had over 2500 in other repairs and payments were 446 mo (with high interest rates from americredit) yes I have been battling credit scars from various hard times and medical bills from kids and such.
i threw my hands in the air this week and told them to come get it. after the tow truck arrived .. i called my insurance company and canx the insurance on it
Part of me is relieved and the other is shaking.

there is my small intro

[tobee43]

we surrendered our car...and it was a relief as well....

and sometimes one just needs to do what they need to do...so it's good...relax and plan... you'll do fine!

[Texian]

Thanks Tobee.... I need some support I guess... I have a beater-98mazda I hope it makes it to get kids to school and grocery's for awhile at least till I can find a job. I was in HR till Sept 21.... (made 64k) now I am at 15k on Unemployment... My home ..I am behind on mortgage but making payments ... I have thrown my hands up ..now bk is what I am left with ..the old stuff will not go away either!!!!

[mommi2many]

You're in good company here. There's so much information here and very helpful people, also. I wish you all the best in coming up with the right bk plan for you.

[plumbingbg]

you will be fine buddy

i got 2 cars i am waiting on tow truck to arrive and dont give a crap dont have the money anymore for everything so i waiting on creditor to put lein on the house but dont care when i file in a few months i will have leins removed so ha just do what you can to survive its tough nowadays i hope your old car will get you where you need to go and mine lol

[Texian]

Hi ya Plumbingbg and mommi2many... well i am not sure where to even start ...bk7 I guess is the best for me ... I have only unemployment right now and 2 kids ..my texas common law husband does work ...but we are making serious cuts .... everything from eating out-cut,beauty shops-cut,shopping-cut, daycare-cut,cell phones-cut,car payment and ins-cut-...... my daughters 18th bday is next week ....i feel bad that I can not do anything for her -she is looking for a part time job to help out ..love her for that ..

[oregonpilot]

that is so sweet of your daughter to see the real picture and wanting to help.
Wish her Happy Birthday
Stick together and lean on each other for support.
We are all here for you.

[Texian]

Thanks Oregonpilot,

This will be a cleansing of sort I hope .... I am nervous , but I know there is no more room for negotiations ... luckily my debt is alot of (60000)medical bills ..car repo(10k) and the house(108k) (in my name only) have not had credit cards since 1999-2001..can not get approved for them .

I want to keep the house since the mortgage will be cheaper than any other 3bedroom in town ..been here since 2001

[chicagoannie]

Sounds like the repo man did you a favor! Welcome...there's lots of good folks here!

[Texian]

Hi ya Chicagoannie,

Thanks for the encouragement ... It was a no win situation for sure we already paid 21k into the suv....still owe 10k bought it in 06 used for 14900 ..yes at subprime interest(needed to downsize from a excursion)

Gosh ..i could go for a portillos hotdog about right now (bigsmile)

[discouraged]

And sometimes you will do that, but when you do it will be such a treat that you'll relish it. I too am laid off, but mine has been 2 years with intermittent temp jobs which have kept me going. The first year I blew through my 401K, thinking that I HAD to pay my bills and that I would get a job. Now I am realistic, have learned to live on very little and gave my lawyer all the paperwork, so he will be filing soon.

Already I am relieved. Will be more so when he actually files. I am giving up my house because it is so underwater and there is still no work here so may have to move anyway to where some jobs are - or at least close to family as they will help me until I find something.

Is there a possibility you can buy a beater from a friend? I paid 1500 for mine 5 years ago and the thing still runs. Doesn't look the greatest, lot of rust, but gets me from point a to point b. The good thing is, no one is ever going to steal it, LOL.

You'll get a lot of support here. All of us are or were, in the same boat. Lots of good advice and sincere folks.

[tobee43]

Thanks Tobee.... I need some support I guess... I have a beater-98mazda I hope it makes it to get kids to school and grocery's for awhile at least till I can find a job. I was in HR till Sept 21.... (made 64k) now I am at 15k on Unemployment... My home ..I am behind on mortgage but making payments ... I have thrown my hands up ..now bk is what I am left with ..the old stuff will not go away either!!!!

support is what you'll get here... there are some of the BEST people in the world....on this site...and already a few of them have responded to you...LOL!!! ..(as i checked the response list!)

we gave our home up after 30 years...after all the tears and fears....we now have hope and joy....and it was the best decision and hardest decision we ever made. but today we are in such a good place and it was a hard and long journey....

we are here for you! you'll have good days, great days and not so great...but know you can always post and someone will be here to support you!

[Texian]

Hi Tobee
In BK7 or 13 - I can keep my home in Texas correct??? we have no other cars or boats.. no heirlooms but pictures of family ..no collections ..... now that i look around we have a bunch of clutter (yuk) I am going room by room starting today to trash a bunch of nothing//why i save bows and bags and odd magazines I ll never know .

Has anyone else done this??? I suppose it is a rebirth of some kind ...

been in denial and robbing peter to pay paul ..avoiding the collection calls for years ..tried writing letters to making them stop ..changed phone numbers several times ..tried to workout various collections thru the years (since 02) and each time it just gets uglier and uglier .. as I said before mine is not credit card debt .. i have been paying cash for all expenses ..even some in store credit which have defaulted due to various emergency expenses and loss of income ..they did not come and take the do it yourself floor which is still unfinished since 03 ..they just turned me over to collections .. and now the repo of a 8 yr old vehicle that has been non-exsisting make and model since 08-09 that you can not get fully repaired from a front end collision{side note -i went into the back of a flatbed welding truck that had slammed into the back of someone else in Dec 2010 they had the vehicle in the body shop for 30 days} (they can not locate replacements)

My entire 10 yr story is overwhelming so Im just going to give it in snippits..Even Hollywood can not write crap this good!!!!
I am a survivor for sure .. God must have a better plan for me in the next 10yrs

[tobee43]

actually...we were a no asset chapter 7....we sold every piece of furniture and even clothes to live...sad, but really true...so we we not only went room by room...we told everything we could and sold it to eat for a while.

well from what i know about texas it has some of the "strongest" debtor exemptions..... cool...i just did a quick search....


Texas Personal Property Exemptions: The Property They Can't Take

Texas is one of the most liberal exemption states. Discussed below are the personal property bankruptcy exemptions available under Texas state law and the most commonly claimed federal law exemptions.
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The state personal property exemption cap: The Texas debtor is allowed a certain portion of personal property exempt from garnishment, attachment, etc. The aggregate amount which is allowed the debtor is determined based upon the debtor's status.

Single adult: A single adult, who is not a member of a family is entitled to property he or she owns that has a fair market value (exclusive of liens) of up to $30,000. Tex.Prop. Code § 42.001(a)(2).

Family: A family is entitled to property with a fair market value (exclusive of liens) of up to $60,000. Tex.Prop. Code § 42.001(a)(1).

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Property subject to state exemption cap: With the exception of jewelry and unpaid commissions for personal services which are each limited to 25% of the cap, the debtor may allocate his exemption cap among any one or more of the 13 categories listed below.
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Home furnishings: Home furnishings, including family heirlooms can be claimed as exempt property. Tex.Prop. Code § 42.002(a)(1). The term "home furnishings" is not defined in the Texas Property Code. The words "household" and "furnishings" are given their ordinary meaning. They do not include items such as portable telephones and hand-held recorders.
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Food: Provisions for consumption can be claimed as exempt property.
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Farm/ranch vehicles and implements: Farming and ranching vehicles and implements can be claimed as exempt property.
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Tools of trade: Tools, equipment, books and apparatus, including boats and motor vehicles used in a trade or profession can be claimed as exempt property. Tex.Prop. Code § 42.002(a)(4). What constitutes "tools of trade": Items are tools of the trade in Texas if they are "fairly belonging to or usable in the trade." Only items that are "peculiarly adapted to" the debtor's trade or profession are exempt as tools of the trade under the Texas exemption statutes.
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Wearing apparel: Wearing apparel (other than jewelry which is dealt with separately) can be claimed as exempt property. Tex.Prop. Code § 42.002(a)(5).
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Jewelry: Jewelry is exempt to the extent its value does not exceed 25% of the exemption limit. Tex.Prop. Code § 42.002(a)(6).
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Weapons: Two firearms can be claimed as exempt property. Tex.Prop. Code § 42.002(a)(7).
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Athletic/sporting equipment: Athletic and sporting equipment, including bicycles can be claimed as exempt property. Tex.Prop. Code § 42.002(a)(8). Athletic and sporting equipment consists only of small items for individual use and does not include jet skis, sailboats, or power boats. In re Crockett, 158 F.3d 332 (5th Cir.1998)(jet skis); In re Gibson, 69 B.R. 534, 535 (Bankr.N.D.Tex.1987) (power boats); In re Griffin, 139 B.R. 415, 417 (Bankr.W.D.Tex.1992) (sailboats).
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Motor vehicles: A two-wheeled, three-wheeled, or four-wheeled motor vehicle for each member of a family or single adult who holds a driver's license or who does not hold a driver's license but who relies on another person to operate the vehicle for the benefit of the nonlicensed person can be claimed as exempt property. Tex.Prop. Code § 42.002(a)(9).
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Farm animals: The following animals and forage on hand for their consumption can be claimed as exempt property: two horses, mules, or donkeys and a saddle, blanket, and bridle for each; 12 head of cattle; 60 head of other types of livestock; and 120 fowl. Tex.Prop. Code § 42.002(a)(10).
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Pets: Household pets can be claimed as exempt property. Tex.Prop. Code § 42.002(a)(11).
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Life insurance: The present value of life insurance policies are exempt if a family member or dependent of the insured judgment debtor is the beneficiary. Tex.Prop. Code § 42.002(a)(12); but see Tex.Ins. Code art. 21.22, which indicates that exemption is unlimited (§ 11:45).: As a practical matter, the cash surrender or loan value of a whole-life insurance policy is its present value and there will be no present value to a term policy. (See § 11:45 et seq.)
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Unpaid commissions for personal services: Unpaid commissions for personal services not to exceed 25% of the aggregate limitation may be claimed as exempt from seizure. Tex.Prop. Code § 42.001(d).
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State exemptions not subject to cap: Certain exemptions are not subject to any valuation limitation.
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Current wages: Current wages for personal services are wholly exempt, except for the enforcement of court-ordered child support payments. Tex.Prop. Code § 42.001(b); See In re Cooley, 87 B.R. 432, 438 (Bankr.S.D.Tex.1988)--Bankruptcy Code also excludes wages from Chapter 11 plan.
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Limited protection: This exemption prohibits the issuance of a writ of garnishment against the debtor's employer. Additionally, a court cannot order turnover of paychecks, retirement checks and other similar types of assets. However, once the wages are turned over to the debtor and converted into cash they are subject to execution and a turnover order. Tex.Civ.Prac. & Rem. Code § 31.002(f)--a turnover order cannot be obtained before the wages are turned over to the debtor; Brink v. Ayre, 855 S.W.2d 44, 45 (Tex.App.--Houston [14th Dist.] 1993, no writ); Burns v. Miller, Hiersche, Martens & Hayward, P.C., 948 S.W.2d 317 (Tex.App.-- Dallas 1997, writ denied).: If the wages are deposited into a bank account they are subject to garnishment. American Exp. Travel Related Services v. Harris, 831 S.W.2d 531, 533 (Tex.App.--Houston [14th Dist.] 1992).
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Self-employed debtors: The current wages exemption does not apply to the earnings of self-employed debtors who are viewed as independent contractors. Tex.Prop. Code § 42.001(d); In re Martin, 117 B.R. 243, 246 (Bankr.N.D.Tex.1990). The self-employed debtor must rely upon the exemption for unpaid commissions for personal services which is included in the property subject to the exemption cap and cannot exceed 25% of the cap.
EXAMPLES: Texas courts have found independent contractors to include:
. attorneys in private practice; Hennigan v. Hennigan, 666 S.W.2d 322, 324-25 (Tex.App.--Houston [14th Dist.] 1984, writ refused n.r.e.), 677 S.W.2d 495 (Tex.1984);
. a district agent for an insurance company; In re Perciavalle, 92 B.R. 688, 691 (Bankr.W.D.Tex.1988), and a trucker who furnished his own transportation, equipment, etc. Brasher v. Carnation Co. of Texas, 92 S.W.2d 573, 575 (Tex.Civ.App.-- Austin 1936, writ dismissed).
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Health aids: Health aids that are professionally prescribed for the judgment debtor (or the debtor's spouse or dependent) are exempt regardless of value. Tex.Prop. Code § 42.001(b)(2).: This exemption arguably includes, e.g. a wheelchair for a person unable to walk, an air conditioner for an asthmatic or an elevator for a person unable to climb stairs. However, it probably does not exempt swimming pools, saunas, bicycles, golf clubs, or gymnastic equipment merely because their use is necessary to sustain good health.
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Insurance benefits: There is an unlimited exemption of insurance benefits to the debtor who is the designated beneficiary of an insurance policy. Tex.Ins. Code art. 21.22; In re Young, 166 B.R. 854, 857 (Bankr.E.D.Tex.1994) (life insurance proceeds remain exempt cash).: "Insurance benefits" includes "all money or benefits of any kind, including policy proceeds and cash values, to be paid or rendered to the insured or any beneficiary under any policy of insurance issued by a life, health or accident insurance company, including mutual and fraternal insurance companies, or under any plan or program of annuities and benefits in use by any employer." Tex.Ins. Code art. 21.22 § 1.: The exemption protects the insurance benefits from seizure to pay the debts of the beneficiary and the insured even if (i) the insured has the right to change the beneficiary or (ii) the insured or the insured's estate is a contingent beneficiary. Tex.Ins. Code art. 21.22.: This exemption does not apply to a creditor seeking to1) recover premium payments made in fraud of creditors; or (2) to foreclose on its security interest in a policy or its proceeds pledged to secure the debt of the insured or beneficiary. Tex.Ins. Code art. 21.22. If the bankruptcy debtor chooses the Texas exemptions, insurance benefits are fully exempt in a bankruptcy proceeding of either the insured or the beneficiary. Tex.Ins. Code art. 21.22, § 1(4).
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Retirement plans, IRAs, etc.: There is also an unlimited exemption for monies set aside in certain qualified accounts earmarked for the debtor's retirement.
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Retirement plans; profit sharing plans: A person's right to the assets held in or to receive payments, whether vested or not, under any stock bonus, pension, profit-sharing, or similar plan, and under any annuity or similar contract purchased with assets distributed from that type of plan, and under any retirement annuity or account described by Section 403(b) of the Internal Revenue Code of 1986, or any individual retirement annuity, including a simplified employee pension plan, is exempt from attachment, execution, and seizure for the satisfaction of debts. The plan, contract, or account must qualify under the applicable provisions of the Internal Revenue Code of 1986. (26 U.S.C.A. § 1 et seq.) Tex.Prop. Code § 42.0021(a); Rucker v. Rucker, 810 S.W.2d 793, 795- 96 (Tex.App.--Houston [14th Dist.] 1991, writ denied)--to be exempt plan must qualify under Internal Revenue Code.: This does not prohibit the participant/plan beneficiary from borrowing from his or her plan and granting a lien on his/her interest in the plan to secure the loan. Tex.Prop. Code § 42.002(d).: Additionally, under Texas law, causes of action to recover for lost exempt status of an individual retirement account (IRA) lost allegedly due to negligence and breach of fiduciary duty by the company that administered the debtor's preconversion Keogh retirement plan are exempt property under Texas statute exempting qualified retirement accounts from bankruptcy estate. Matter of Swift, 129 F.3d 792, 801 (5th Cir.1997).
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Government or church plans: A person's right to the assets held in or to receive payments, whether vested or not, under a government or church plan or contract is also exempt. The plan or contract must qualify under the definition of a government or church plan under the applicable provisions of the federal Employee Retirement Income Security Act of 1974. Tex.Prop. Code § 42.0021(a); 26 U.S.C.A. § 1001 et seq.: The participant/plan beneficiary is not prohibited from borrowing from his or her plan and granting a voluntary lien on his/her interest in the plan to secure the loan. Tex.Prop. Code § 42.002(d).
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IRA [and Keogh] ("self-employed") plans partially exempt: Contributions to IRAs and annuities are exempt to the extent those amounts do not represent contributions in excess of the maximum contribution amounts exempt from federal income tax. Accrued earnings on exempt contributions are also exempt. Excess contributions and accrued earnings thereon are not exempt. Tex.Prop. Code § 42.0021(b).
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Nontaxable rollover contributions: If an IRA contains amounts which qualify as non-taxable rollover contributions under the Internal Revenue Code, the amounts are exempt. 26 U.S.C.A. §§ 402(a)(5), 403(a)(4), 403(b)(8) and 408(d)(3); Tex.Prop. Code § 42.0021(b).
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Multiple accounts: Texas law does not limit the number of IRAs the debtor can claim as exempt property; provided, the aggregate amount does not exceed the maximum contribution amounts. Matter of Volpe, 943 F.2d 1451, 1453 (5th Cir.1991). Distributions: Once payments are received by the retiree or other beneficiary they are no longer exempt. Cain v. Cain, 746 S.W.2d 861, 865 (Tex.App.--El Paso 1988, writ denied). There is an exception to this rule for amounts distributed from a qualified plan. These amounts are exempt for 60 days if the amounts qualify as a nontaxable rollover contribution. Tex.Prop. Code § 42.0021(e). EXAMPLE: Debtor is terminated by employer. Employee "cashes out" debtor from employer's qualified plan. Debtor has 60 days to deposit funds into another qualified plan. Texas Exemption of Retirement Benefits: Interaction with the Bankruptcy Code and Possible Preemption by Mackey v. Lanier Collections Agency & Services." 26 Houston L. Rev. 497 (1989) contains a good discussion of the bankruptcy issues in exempting retirement benefits.
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Federal non-bankruptcy exemptions: A debtor may also utilize any exemptions provided by federal nonbankruptcy law in addition to either the state exemptions or the Bankruptcy Code exemptions.
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Social security benefits: Under federal law Social Security benefits (whether paid or payable) are not subject to execution, levy, attachment, garnishment, legal process or to the operation of the bankruptcy laws. 42 U.S.C.A. § 407.
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Veteran's benefits: Federal law generally exempts veteran's benefits from seizure, both before and after receipt by the beneficiary. 38 U.S.C.A. § 3101(a).: But if the benefits are spent on a permanent investment, they are no longer exempt as "veteran's benefits." Carrier v. Bryant, 306 U.S. 545, 549-550, 59 S.Ct. 707, 708, 83 L.Ed. 976 (1939). And, once benefits are paid to the veteran, they may be reached by court order to satisfy the veteran's child support obligations. Rose v. Rose, 481 U.S. 619, 635, 107 S.Ct. 2029, 2039, 95 L.Ed.2d 599 (1987).
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Property of debtor in military service: Although not technically an exemption from seizure, federal law also provides that any court may stay enforcement against a debtor in military service if the ability of the defendant to pay the judgment or debt is "materially affected by reason of his military service." The court may stay execution of any judgment or vacate or stay any attachment or garnishment (before or after judgment). The stay may generally last for the period of the debtor's military service plus three months. The court also has discretion to require payment in installments or otherwise. See 50 U.S.C.A. App. §§ 523, 524.: In addition, deposits made to a U.S. Serviceman's Savings Institution by members of the armed forces on permanent duty outside the United States (and the interest thereon) are exempt from liability for the depositor's debts. 10 U.S.C.A. § 1035(d).
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Federal employee's statutory compensation for injury or death: Compensation (and claims for compensation) paid on the death or injury of a federal employee are exempt. Also, these claims cannot be assigned. 5 U.S.C.A. § 8130.

[Texian]

Wow .. so the way I am reading it I can keep the personal contents of the home and the home since Texas exempts the homestead..and I include the 04 repo'd isuzu in the chap7 -no asset right ??