Big time issues.

[scubadiving1998]

[allavdj]

I can't answer to all the questions posted but I will address one thing:

Once you stop paying you'll get about 30-60 days before they -really- start hounding you. Since your name is on car titles and house deeds that are all paid off, these assets will show on any asset search that the creditors or collectors perform. Since the house is paid for and the car is paid for, they may not think twice before hauling you to court since there is a lot there for the courts to seize.

I would seriously consider talking to and finding a lawyer to guide you through this situation as soon as possible. You stand to loose a whole lot if you don't get somebody on your side that can help you keep the property as safe as possible.

[lrprn]

Welcome, SD1998 - glad you found us! Let's tackle your questions one by one.

....my name is on the house and since my father did passed away 2 years ago, my mother and I are now both considered half owners of the house. The house is worth about $250,000 and is paid off.

This is could be a problem whether you file Ch 7 or Ch 13. Since the house is paid off and you own half of it, PA homestead exemptions protect no equity and the federal exemptions (you can use one or the other in PA) don't protect that much equity. Under these circumstances, it's possible the trustee could force the sale of the house to get at your half. However, given the terrible state of the current housing market, it's hard to tell if the PA trustees are willing to try this.

Talking to several experienced local bk lawyers (most give free initial consultations) will help you find out if the house will be an issue for you if you file a 7 or a 13.

I plan to sell it to her in January for about $800.00.

Any income that you get in the six months before filing will have to be added to your Means Test figures. Speak to 3-4 experienced bk lawyers in your area before selling ANY assets while you are making up your mind about filing. Selling an asset like a car within a year before filing can open up a situation where the trustee could go after the asset and force its sale. Given the very low value of this car, this isn't a big consideration in your situation.

I bought the 2nd car, a 2005 Chevy Impala for about $12,000. Paid cash that I scraped together. I own it outright, no bank or loan. Actually, this car is in my name and my mother's name. We are equal partners in the ownership of the car AND the house.

The fact that the car is completed paid off could be a problem. The PA exemptions - see them at http://www.bankruptcyinformation.com/PA_exemp.htm - don't mention any exemption allowed for a car.

However, you can choose to use the federal bk exemptions instead of PA's, and the federal exemptions - see them here http://www.bankruptcyinformation.com/exemp-fed.htm - allow $2,775 of motor vehicle equity to be protected. Depending on how much your 2005 Impala is worth now, the amount over $2,775 is not protected. If half of that difference is enough to go after, the trustee could force sale of the car, give half of the cash to your mom, and take the rest for your creditors.

Again, this is something you need to discuss during your bk lawyer initial consultations to find out what the trustee customs are in your local court.

Also, out of convenience and so there would be no questions, I have my name on her checking account (I write all her checks out sonce she has right side partial paralysis as a results of the stroke and can't write legibly).

Plus my name is on her savings account but it is HER $$$, not mine. I plan to get my name back off that account but really do need to keep it on her checking account so I can continue to do my job for her.

This is yet another situation where you need expert bk legal advice.

The bankruptcy law doesn't care WHY your name is on the accounts. It only cares that you are considered part owner of the amounts in the accounts. Half of any money in accounts that is not coming from Social Security or disability payments may be considered fair game. Add this question to your list to ask during your initial bk lawyer consultations.

Also, what is a means test?

Here's a pretty good explanation of the Means Test - http://www.************************/...-in-chapter-7/

Ugh. I know nothing about this except that i am in way too deep and need relief.

The hardest step is admitting that you are in over your head and need help. You've accomplished that, so you're off to a good start.

The best way to begin this journey is to learn more about how Ch 7 and Ch 13 bankruptcy work. Here's some good websites to start you off:

Chapter 7

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html

http://www.moranlaw.net/chapter7.htm

Chapter 13

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html

http://moranlaw.net/13workings.htm#Chapter%2013%20practice

While you are learning more about bankruptcy, set up initial consultations with at least 3-4 experienced bankruptcy lawyers in your area. Here's a link that explains how to find a good bk lawyer - http://bankruptcy.lawyers.com/Bankru...od-Lawyer.html

Good luck! Keep asking questions - we'll help you sort things out as best we can.

[lrprn]

SD1998, I merged your two duplicate posts and their responses into one thread. We've found that it's best to have all responses to the same questions in one place. You'll get more and better responses this way.

[justbroke]

Very nice and thorough response lrprn. You saved me 10 minutes or more of typing.

[kenshirley]

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