What is the name of your state (only U.S. law)? Georgia
A combination of poor (ongoing) health and medical bills that kind of kept on adding up has put me in a position of not being able to pay my bills for the first time in my 62 year life. All savings have been eaten up by it too.
Several attorneys have advised that Chapter 7 is appropriate. I have begun filling out the paperwork. Anyway there is a section for "other assets" such as stocks/bonds, antiques, valuable collections, cash value, jewelry and so on. I have travelled extensively and have collected what I consider "art" in the form of Thankas, Religious statuary and folk art and miscellaneous items hard to classify (other religious items).
Because of a fire in a neighbor's condo unit, I got a Valuable Property Protection policy in which I list these items and insured them. While I have an emotional attachment to most of the items, I could see liquidating some of them, but the "other religious items" are beyond value, because they are tools to my religious practice and irreplaceable. Actually, most of the items are irreplaceable, I just insured them to get what I thought was a reasonable monetary compensation in the event of a fire.
I would rather go into default and face the wrath of collection agencies than have them on the table to be liquidated.
When I brought up the topic (so far communicating in emails as I prepare paperwork), this is how the attorney responded:
"I am not concerned about your household items/souvenirs from your trips, and you shouldn't be either. I have not had a client who was grilled about specific household items by a Chapter 7 trustee, and I have not had a Chapter 7 Trustee request more information about specifics of what's in a house and no Trustee has ever, that I know of, visited a house to take inventory, etc.
I typically do a laundry list of items and have never gotten any feedback, good or bad, from the trustee. This is what I typically put down, and then I tweak it once I sit down with the client and see if there's more or less:
"Miscellaneous household goods and items, including bedroom set, living room set, kitchen table and chairs, desk, bookshelves, washer and dryer, appliances, 2 television sets, computer, pots and pans, dishes, cutlery."
When I use this laundry list, I usually value it at $3500.
You have a household goods exemption that totals $5000, so this household goods exemption typically covers a whole household. Think about it: you are in a condo, and many others are in houses, and I have not heard even a "boo" from a Trustee that they don't expect how I list it.
As far as the insurance rider, I have never had a Trustee ask if one exists or to see one.
While I realize your items have value, keep in mind that what we are interested in is GARAGE SALE VALUE. Really, what is someone going to give you for the African statute or paperweight from Thailand. They are not going to pay for sentimental value (which is worth a lot, I agree, but does NOT translate to value in terms of $ for the item on the bankruptcy petition). When we do this exercise I will ask you kindly, and you can start that process now, to disengage yourself from the sentimental aspects of your household items and review them with a fiscal goal."
Given that the largest credit card balance is with the insurance company that has this itemized rider, is the attorney's approach reasonable? I don't want to risk these items, but even more so, don't want to be fraudulent.
Yes, pennies on the dollar in liquidation is a reasonable assumption (I've seen two estates liquidated) to me, but I'm still feeling worried. Won't have my meeting for two weeks with the attorney. Hard for me to "believe" that a Trustee holding the VPP wouldn't ignore it.
Note: I'm current, not in arrears with anything and will be such when I go into this process. I have a chronic illness and struggling to work otherwise I would work out a plan.
A combination of poor (ongoing) health and medical bills that kind of kept on adding up has put me in a position of not being able to pay my bills for the first time in my 62 year life. All savings have been eaten up by it too.
Several attorneys have advised that Chapter 7 is appropriate. I have begun filling out the paperwork. Anyway there is a section for "other assets" such as stocks/bonds, antiques, valuable collections, cash value, jewelry and so on. I have travelled extensively and have collected what I consider "art" in the form of Thankas, Religious statuary and folk art and miscellaneous items hard to classify (other religious items).
Because of a fire in a neighbor's condo unit, I got a Valuable Property Protection policy in which I list these items and insured them. While I have an emotional attachment to most of the items, I could see liquidating some of them, but the "other religious items" are beyond value, because they are tools to my religious practice and irreplaceable. Actually, most of the items are irreplaceable, I just insured them to get what I thought was a reasonable monetary compensation in the event of a fire.
I would rather go into default and face the wrath of collection agencies than have them on the table to be liquidated.
When I brought up the topic (so far communicating in emails as I prepare paperwork), this is how the attorney responded:
"I am not concerned about your household items/souvenirs from your trips, and you shouldn't be either. I have not had a client who was grilled about specific household items by a Chapter 7 trustee, and I have not had a Chapter 7 Trustee request more information about specifics of what's in a house and no Trustee has ever, that I know of, visited a house to take inventory, etc.
I typically do a laundry list of items and have never gotten any feedback, good or bad, from the trustee. This is what I typically put down, and then I tweak it once I sit down with the client and see if there's more or less:
"Miscellaneous household goods and items, including bedroom set, living room set, kitchen table and chairs, desk, bookshelves, washer and dryer, appliances, 2 television sets, computer, pots and pans, dishes, cutlery."
When I use this laundry list, I usually value it at $3500.
You have a household goods exemption that totals $5000, so this household goods exemption typically covers a whole household. Think about it: you are in a condo, and many others are in houses, and I have not heard even a "boo" from a Trustee that they don't expect how I list it.
As far as the insurance rider, I have never had a Trustee ask if one exists or to see one.
While I realize your items have value, keep in mind that what we are interested in is GARAGE SALE VALUE. Really, what is someone going to give you for the African statute or paperweight from Thailand. They are not going to pay for sentimental value (which is worth a lot, I agree, but does NOT translate to value in terms of $ for the item on the bankruptcy petition). When we do this exercise I will ask you kindly, and you can start that process now, to disengage yourself from the sentimental aspects of your household items and review them with a fiscal goal."
Given that the largest credit card balance is with the insurance company that has this itemized rider, is the attorney's approach reasonable? I don't want to risk these items, but even more so, don't want to be fraudulent.
Yes, pennies on the dollar in liquidation is a reasonable assumption (I've seen two estates liquidated) to me, but I'm still feeling worried. Won't have my meeting for two weeks with the attorney. Hard for me to "believe" that a Trustee holding the VPP wouldn't ignore it.
Note: I'm current, not in arrears with anything and will be such when I go into this process. I have a chronic illness and struggling to work otherwise I would work out a plan.
