Questions, Need Answers Please

[Kamiah]

What is the name of your state? Idaho


1. I currently have 200.00 a month taken out of my wages to repay state and federal taxes. Will the trustee see this as extra income once my employer stops taking them out of my wages? These payments are for current taxes so they are not dischargeable.

2. 70.00 is taken out of my wages every month towards the purchase of an I-book for my oldest daughter. This is her graduation/birthday/christmas present. I am on a two year contract with one year already paid off. Will I have to stop making payments on this contract and will the trustee see this as extra income?


3. Every month I pay 74.00 towards an IRA. This is an ERISA-exempt IRA but will I have to stop making payments towards this account during the BK? Will the trustee see this as extra income?

4. We have four vehicles. the 99 Contour is secured through Household Bank (what jerks); the 94 Ford Escort is secured through a title loan, but belongs to our 17 year old daughter since she made the payments (she just can't have the vehicle in her name til she is 18); the 86 Alfa Romero is also secured by a title loan; and the 84 Blazer is also secured by a title loan. The Kelly price on the Contour is 5200; 94 Escort 2100; Alfa Romero is 800; and the Blzer falls off the chart. We definately plan on reaffirming the 3 title loans since they are local people and we want our vehicles back. Not sure about the Contour, might redeem or simply keep and make payments on. Would we be able to keep all 4 vehicles? The Alfa does not run and my DH can not bear to part with it. The Escort will belong to our daughter in 6 months and the Blazer is working on its second rebuilt engine.


I filed pro se but have not turned in all the paperwork yet. I have until next Tuesday to do that and hope to have the local bk attorney look over the paperwork prior to filing the paperwork.

Additional Info:

My daughter has the I Book. She used it all during her junior year in high school and will this year. At the time we purchased it we felt it was the only way to get her something nice since our credit was shot and it was through our local university book store. The IRA I have had since 1999. It is fully exempt from being taken by the Trustee, I just do not know if the payments to it have to stop during the BK process.

Our current monthly income (net) is about 3200 and our monthly expenses are nearly 3600 (if you include the 3 title loans we have to pay on each month). That is why we fell into the pay day loan cycle because our expenses outweighed our monthly income. My husband and I both work a second job and I also go to college part time whenever I can. We have struggled to put three older children though college/trade school and will have 1 child entering college in a year and another one six years from that. By the time our youngest graduates from high school my husband will be at full retirement age.

Not sure about equity in vehicles. My daughter paid 1800.00 for her car. The blazer is so old it doesn't even show up on blue books. The alfa we only paid 350.00 for eight years ago, but it needs 3 times that amount in engine and front end work. The Contour was 10,500. We owe 6200 (according to Household).

Idaho is a community property state and the exemption says 1 car (3000.00), so I am guessing that means 6000.00 for 2 cars. Does this help?

Tax garnishments are an on going thing (have been for the past 3 years). THrough some screwup on my part (I guess) I elected to have all my deductions (medical insurance, retirement) taken out pre-tax so my net income is not enough to have taxes taken out of. It took us several years to figure out why my income was not being fully taxed and now I have to wait another year before I can change all my deductions post-tax. Sigh.



Thanks for your help people.

Kam

[Kodiak]

I am in Utah so I don't know how much the laws differ and I am by no means a legal expert. I can however tell you how it went for me when I filed recently as I have a similiar situation.

I pay the IRS $150 per month for taxes owed 2002. I could not include this $150 in my budget even though the debt is not dischargeable.

I don't have an ibook but I do owe a furniture store about a $1000 and I plan on keeping the merchandise. Even though I will continue to pay them I could not include the $70 per month in my budget.

As far as the IRA goes you will probably have to stop it until the discharge. I had to stop contributing to my 401K as this is considered disposable income. The money is safe in the IRA and the trustee can't take it.

I can't really give any advice on the car situation as mine both have negative equity and I am surrending one of them.

Hope this helps a bit.

[Ladynred]

Will the trustee see this as extra income once my employer stops taking them out of my wages? These payments are for current taxes so they are not dischargeable.

If they are current taxes and not dischargeable, then you are obligated to pay them. The Trustee won't disallow that kind of payment.

2. 70.00 is taken out of my wages every month towards the purchase of an I-book for my oldest daughter. This is her graduation/birthday/christmas present. I am on a two year contract with one year already paid off. Will I have to stop making payments on this contract and will the trustee see this as extra income?

If it is a contract, then it may not be a problem, you need to ask a lawyer. It may be classified as an executory contract.

3. Every month I pay 74.00 towards an IRA. This is an ERISA-exempt IRA but will I have to stop making payments towards this account during the BK? Will the trustee see this as extra income?

This one is probably a yes, you'll have to stop paying it. IRA contributions, like 401K's, are voluntary.

Would we be able to keep all 4 vehicles?

Sorry, but I seriously doubt any Trustee would let you keep FOUR vehicles. Those 3 title loans are burdensome to the estate and a judge has to agree on reaffirmations. You REALLY need to see an attorney, your case is far from a 'simple' bankruptcy.