Question Filing for bankruptcy

[anonforthiss]

Hi everyone,

The US treasury is garnishing my husband salary for the sba loan of 45K. We owe a total of 125K in credit cards and 45K in sba loan. We have a combined salary of 75K a year. We owe 220K in our primary home and the house worth about 310K. We owe 135K on our rental and its worth about 120K. We have about 65K in retirement accounts and 26K in Ford stock. We also have two paid off cars worth about 5K and 17K. We are thinking about filing for bankruptcy. We want to keep our house and cars if its possible. We are in Texas. We tried to negotiate the sba loan but they didn't want to work with us. After many days researching, we believe sba loan would go away if we eligible for chapter 7. We used the means test on legalcomsumer.com and it looks like we are eligible for chapter 7. Should we sell the Ford stock we owe before filing for bankruptcy? Thank you!

[keepsmiling]

Hi and welcome to the forum!
You've obviously been reading because you posted lots of good info
I think in Tx you get unlimited homestead exemption but double check. If that's the case you are in good shape with the house.
You'll have to check your exemptions for the cars etc. Could def be an issue in a 7. Check to see what your cash and wildcards are too. This is important.
I think if you cash in your stock and use it for living expenses- ie, fix the cars, buy groceries, buy life/health insurance, go to the dds-- you might be ok. Don't pay any other loans with it.

What's the story with the rental? Does it produce income? They may or may not want it.
Have you made any appointments for no fee consults? Since you've been reading here you'll know you want to speak to 3 at a minimum.

Others will be along shortly with more advice.

[keepsmiling]

The retirement accounts should be safe btw. Generally speaking they are untouchable in bk.

[keepsmiling]

If your cash exemptions are limited, that 26k could be an issue. Does your roof need fixing?
Don't do anything with anything before speaking to a few lawyers and be sure to present this info.

[anonforthiss]

Thank you!! We have to pay about $150 out of pocket a month for the rental property. Yes, we need a new proof for our primary home but we don't have the money to do so. We are going to speak to an attorney next week. Thanks again.

[LadyInTheRed]

Yes, we need a new proof for our primary home but we don't have the money to do so.

I don't know what a roof costs, but wouldn't selling the Ford stock cover it? I looked at the Texas exemptions and it doesn't look like you are going to be able to exempt the stock. You can exempt the entire value of one motor vehicle for each licensed household member. So, if somebody in your family could use a new car, you could sell the stock and buy a car. A Ford, maybe?

Could you wait for 90 days to file? Maybe stop paying cc's to help offset the garnishment? If so, talk to the attorney about selling the stock and using it to paydown your mortgage.