My Delima (Need Advice)

[BgTmeSpndr]

State: Kentucky
I tried posting long version but it didn't go through.
Here is short version.
1981 - Bought property land) through owner financing.
!984 - Bought PU Truck through Credit Union at work. Financed $7,500.
1985 - Company closed
1986 - Went to school, changed jobs, moved to Ohio, truck kept breaking down.
1987 - Behind on pymts., called Credit Union and told them to please repo the truck because I can't afford. Told them it was in a service garage in Columbus, Ohio.
1987 - CU accts sold to another company which got a default judgement on real estate against me and started garnishng my wages.
1988 - Went to work for another company in KY. Garnishments stopped. Never heard from them again until 2005 when I applied for loan. Meanwhile I paid for 50% interest in propery on a land contract (owner financing) Built a cabin to live in. Bought for $8,500 financed over 20 years 12% int. When paid off in 2001, I put it in survivorship 50/50 with girlfriend.
2001 - Entered a contract to buy second property $29,500 12% int for 20 years. (Owner financing) Pymts $325.00 mo.
2005 - Applied for loan. Loan denied. Received letter stating I owed $21,500 for Credit Union loan I defaulted on.
-Consulted atty. He said we negotiate.
-We offer $2,500 to settle. Creditor refuses. Wants $7,500
-We offer $5,500 to settle. Creditor refuses. Wants $7,500 by weeks end or it's back to me owing $21,500.
-Atty finds out they got a second judgment lein in 2002 which negates statute of limitations and garnishment of my wages starts again.
-Atty says for me to file bankruptcy.
-I find BK Atty. Pay him $900
-I am to file the papers with him on next Monday, July 25, 2005.
-I make about $30,000 per yer as truck driver. My living expenses and bills equal that. I own no assets other than my clothes, and a small firearm and 50% of a $15,000 (PVA Tax estimate) piece of land with a cabin we live in and the land on contract which I pay $325 per month on.
Questions:
A. - Am I bankruptable in Chapter 7 ?
B. - Can I keep my home and the land I'm buying? The homestead exemption in KY is $18,500 Property is worth $7,500 for my half. I still owe $27,000 on the $29,500 land contract on the 2nd piece of land.
C. Will I be forced into Chapter 13 ?
D. Is there time before October 17, 2005 to get this Chapter 7 bankruptcy done?
E. Does anyone have any advice?

Thanks,
BgTmeSpndr

[Ladynred]

Where are you getting this 18,500 homestead exemption for KY ?? By my sources, the homestead exemption for KY is only 5,000 and you can not use Federal exemptions in KY.

If the 5K exemption is correct (Ill check the statutes to be certain), then you will not have enough to cover the equity in your property in a Ch 7.

The SECOND piece of land could be entirely forfeit in a Ch 7. No way you can exempt property that is NOT your primary residence.

C) You will probably be looking at a Ch 13, at least from what you've stated here.

D) Yes. All you need to do is FILE before 10/17 and you're covered under the current laws.

e) Talk to a lawyer.. more than one if you can. You also need to find out about the judgment liens. The debt may be dischargeable, but you could be stuck with that lien even after bankruptcy.