Chapter 7 Questions - Asset Liquidation

[toolsavvy]

What is the name of your state? PA

Hi,

I am considering filing bankruptcy and I believe that I may qualify for Chapter 7.

I have been a resident of my state all my life.

My situation is rather simple than most other people's situations, I think.

My only debt (besides federal student loan debt) is credit card debt and I have very little assets and income (actually at this point in time I have no income at all). I know that I will not be able to get rid of the student loan debt and that's fine. That has nothing to do with my post, actually.

My credit card debt amounts to about $65K. $35K is on a Chase card and the remaining $30K is on a Chase Business card that I had from a now defunct business I owned a few years ago (sole proprietorship).

The only assets I own are...

1. A universal life insurance policy which has a cash value of approximately $2,200K

2. An automobile worth approximately $7K (paid off now)

3. A tract of land. This land is jointly owned by my brother and me (we are both on the deed and we acquired it for $1 over 12 years ago from a dying relative). I have no clue as to what it is worth. If I had to guess, I would say approximately $10K-15K tops. This land is in PA. This is just a tract of land, no house or structure - just a vacant lot.

At this time, I no longer have a job as I lost it recently and suddenly due to an unforeseen medical condition I have recently been diagnosed with which disallows me from driving a car (and I needed to drive a car for that job). I won't be able to drive for at least a year and I'm not sure about my employability in general at this time.

In 2006, my income was under $21K.

Also, I am single and never married and now live with my mother due to my medical condition.

My questions are simple, I believe.

1. Is the tract of land exempt from liquidation under Chapter 7 since it is jointly owned by me and a sibling and not by me alone?

2. Is my automobile exempt from liquidation under Chapter 7?

3. Is the universal life policy exempt from liquidation in Chapter 7?

4. How much can I expect to pay a law firm in attorney fees if in fact I qualify for chapter 7 bankruptcy and hire a lawfirm to oversee the whole process for me?

5. From the info above, can anyone say for sure if I even qualify for Chapter 7 bankruptcy?

I thank you very much for your time and answers.

Chuck

[bigun]

The questions you ask are state specific as they go to what your state allows for exempt propert.
Most bk lawyers give a free initial consultation. Talk with a couple and get all of your options explained.

[toolsavvy]

Hi, thank you for your reply...

Originally Posted by bigun

The questions you ask are state specific as they go to what your state allows for exempt propert.

I know. That's why I listed my state

Originally Posted by bigun

Most bk lawyers give a free initial consultation. Talk with a couple and get all of your options explained.

Yes, I realize this but for various reasons I cannot/do not want to contact lawyers just yet. I'm kinda just planning ahead. I'm very busy for the next few weeks due to being diagnosed with a life-changing disorder. Just hoping that someone knowledgeable might be able to answer some questions

I realize the best thing to do is just call lawyers. But if one cannot get preliminary advice, then what good is a forum like this? After all, all legal questions could just be answered "see a lawyer". Right? How would that be helpful? No offense to you. I just don't understand the point in your response. Sorry if I misunderstood.

Any other helpful responses would be great. Also, if there are any important tips any of you might have for selecting a bk lawyer, that would be appreciated as well.

[Ladynred]

Originally Posted by toolsavvy

1. Is the tract of land exempt from liquidation under Chapter 7 since it is jointly owned by me and a sibling and not by me alone?

It may not be. PA has no homestead exemption. You'd have to use Federal exemptions to get that. Since you do not live on that land, it can't be included in that exemption. . In PA, property held as tenancy by entirety MAY be 100% exempt anyway. How that tract of land is deeded is very important. If it's not deeded that way, the Trustee will likely force the sale of that property. You would also have to use PA exemptions - which are pretty slim - to get that.

2. Is my automobile exempt from liquidation under Chapter 7?

Depends on what it's actually worth ie; bluebook value. PA exemptions don't allow for a vehicle, Federal does, but it's only $2950 of equity.

3. Is the universal life policy exempt from liquidation in Chapter 7?

Under Federal exemptions, yes, up to a value of $9850.

4. How much can I expect to pay a law firm in attorney fees if in fact I qualify for chapter 7 bankruptcy and hire a lawfirm to oversee the whole process for me?

Now way for us to know that. Fees vary widely by state and by area within a state. Fees have tripled in most states since the new law went into effect in 2005.

5. From the info above, can anyone say for sure if I even qualify for Chapter 7 bankruptcy?

State median income for a single person in PA is $41,706, so you're under that by a long shot Ch 7 would probably be available to you.

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