Chapter 7 questions

What is the name of your state? va
I have been checking out the site and have a few questions. I'm considering chapter 7 several months down the road. I am barely keeping my head above water but I am current on everything. I have some surgery coming up and although I am employed with decent insurance we are still talking another $3000 in med debt this year and another $1200 in dental. This will send me over the top. I'll be buried for years I have two yound children and I'm needing a fresh start.

Here's the deal, I'm needing to get a newer car. We have outgrown it and it is not worth what I paid for it. I have excellent credit, I'm just credited out, but I know I can get a good rate on a newer car while I'm still current on everything. Surgery is scheduled for next month. Medical bills will follow in a couple more months after insurance kicks in and that is where my problem lies.

I co-own a home with my boyfriend this is refinanced at a good rate. I want to keep this current and continue to jointly own. The debt i'm going chapter 7 on is credit cards (that he is not joint in, I'm calling my creditors and checking if he is joint or authorized user if he is authorized user I'm removing him. He will not be going chapter 7.

I'm 32 years old, I have no real assets $5000 in 401K maybe $1000 in savings bonds and $1200 in stocks which boyfriend is owner I am joint. No jewelery, no trust funds, no handed down antiques. We have your basic household of furniture, appliances and clothing and we are stuggling. Took on too much too fast. "I've fallen and I can't get up"

It really sucks because I've worked hard for what I have and I'm struggling with the thought of ruining my credit for several years and taking the easy way out.

OK here's my questions....

The little assets I do have what can they take?
Household items can't my boyfriend say almost everything is his?
Should I separate my boyfriends and my checking acount? We are joint, he deposits his check in I have direct deposit? I write all checks for all bills on this account.
What do you feel my time range should be? Like I said I'm current on everything. Should I start making minimum payments then start falling behind? I'm afraid if I go chapter 7 in Feb 2004 they will take whatever tax refund I get. Or should I do it sooner. I don't think I will even get a phone call from creditors if I stopped paying today for 3 months. How far do I need to get behind?

Thanks for your help

[Ladynred]

I hear your concerns, but if you're already struggling and looking at a lot more debt, your credit may end up trashed for 7+ years anyway.

Vehicle - if you can do it get another one before you file. Getting a loan afterwards will be almost impossible at a good rate. You can reaffirm it and keep it.

The little assets I do have what can they take?

Probably nothing. There are exemptions for every state, here are yours:

[url]http://www.thebankruptcysite.com/exemptions/virginia.htm[/url]

5K in equity is exempt for your home, but you'll have to homestead it to get the exemption.

The personal property exemption is extremely generous and you can use any unused homestead exemption an apply it to personal property. ALL your 'stuff' is valued at GARAGE SALE prices, so its not all that hard to get it exempted.

Household items can't my boyfriend say almost everything is his?

There's really no need to, the exemption, as I mentioned above, should be enough to cover it all. If its all joint, your "share" is 50%.

Should I separate my boyfriends and my checking acount? We are joint, he deposits his check in I have direct deposit? I write all checks for all bills on this account.

Not a bad idea. You'd have to list the balance on the account and then you'd have to justify exactly what's yours and what's his. It would be easier to have your own account. If you then transfer money into the joint account to pay bills, its fairly easy to show that kind of activity against the outgoing expenses.

What do you feel my time range should be? Like I said I'm current on everything. Should I start making minimum payments then start falling behind?

You should stop using ALL credit cards for 90 days prior to filing. I'd say the same for payments, why waste the money if you're going to file anyway? You don't HAVE to be behind on bills to file, but as you say, most creditors are only going to harrass you on the phone for 6 months if you stopped paying next month. Save it for your lawyer.

I'm afraid if I go chapter 7 in Feb 2004 they will take whatever tax refund I get.

Possibly, depends on how much of a refund you'd get. I'd file before the end of this year. You also need to be aware of the bankruptcy reform legislation that's floating around Congress. It has NOT passed yet, but IF they manage to push it thru to the Prez.. he WILL sign it and then you'd have only 6 months before it becomes law - and then getting a CH 7 will be VERY, VERY difficult. Just something you need to be aware of.

Thanks so much for your advise. One more question You have stated to stop using the credit cards 90 days before filing. How long do they go back? I have a wedding to attend next month, I am forced to purchase gifts on one of the credit cards, will this send a red flag to them at bankrupcy time? Do they look back past the 90 days on your credit card usage?

[FarmerJ]

Mom going to a wedding doesnt obligate you to buy a gift & the idea that you have to give one because you are going is BS . Instead send them a card and Inc a letter telling them you hope they can find the strength to allways comunicate with each other about all matters of married life INC money so they never find them selfs in the same bad spot financially as you are near and that right now that is all you can give to them as well as thanks for sharing there special moment with you . As far as cars go get used to the idea of driving older cars . I got through a ch 13 and car repairs were some times not easy to repair so your better off not having car payments so you CAN have the money to buy another junker if you must .

[nailtech]

Your priorities are a little backwards here…. You’re filing Bk and then your concern is a wedding gift??….. Give the couple a card with a 20.00 bill in it.. They will be just as happy…… trust me.. And once you go to your lawyer he will tell you to quit paying your CC…… then use that money to put into a card……..