Chapter 7 Questions

[DayMDev]

What is the name of your state? PA

I am considering fililing BK! I am currenlty not working and have about $20,000.00 in CC debt! I live with my boyfriend and he takes care of all the expenses.

I own a car that is in both my name and my boyfriends name. Can the car be taken if I file for BK?

The car is my only asset, so do you think I could file Pro Se?

What about my Income Tax? Can I file my Income Tax and then file for BK and be able to keep the Tax return?

Any and all advise is appreciated!

[Ladynred]

You really need to sit down with a BK lawyer, most give free consultations.

If you're not ready for a LOT of legal paperwork and proceedings, then don't file pro se. BK is NOT simple, lots can go wrong with just one little mistake on a schedule.

Is the car financed ? How much equity in the vehicle ?

In PA, you no longer have to reaffirm or redeem on secured property, you can now just keep paying and keep the property.

If you file your taxes before you file for BK and you are expecting a refund, if its a sizeable amount,, the Trustee will take it. You MAY be able to exempt it, but you'd need a lawyer to be sure of that. If you get your refund, spend it, and THEN file, there's nothing the Trustee can do about it as long as you use the money for necessary living expenses. Don't go paying off any relatives.

[DayMDev]

I paid $3,500.00 in cash for the car. Can I keep the car if I File BK?

My tax return will probably only be around $300 - $500. Do you know if the trustee will want this?

What do you think about using a service that files all the BK papers for you? Do you think that this is a good route to go if you can't afford a BK Lawyer?

Can you recommend any services?

Again, Thank You SO Much for any info and/or adive that you may be able to give me with my matter.

[Ladynred]

Ok, so you have 100% equity in the car, but how much is it worth - use a BLACKBOOK value ? The exmption goes to EQUITY, and if you own it jointly with your BF, then your interest in that equity is only half.

That's a fairly small refund, and would likely not be worth it for the Trustee to take it to pay your creditors, so it MAY be safe, and you MAY be able to exempt it. Again, you really should consult with a couple of bankruptcy lawyers.

As for services that do your papers - generally not a good idea. The Trustee will be asking YOU what's in your schedules and why .. how are you going to answer that if someone just does your papers for you ?? In addition, many BK courts have decided that these petition preparation services are promoting bankruptcy fraud, so using one may not be the best idea.