Chapter 7 exemptions

[Calboy]

What is the name of your state (only U.S. law)? California
I believe I qualify to file chapter 7 under the new law (2005). I have nearly 40K in unsecured debt. Credit was let's say, forcibly dismantled by changes in terms by creditors. I've been for the most part out of work and exhausted minimal savings. The only reasonable asset I own outright is an auto valued at approximately $6000. My current income, derived from small, odd jobs ranges from $800 to $1100 depending on what comes along.
If I understand correctly, California offers a $2900 exemption for an auto under one of the plans. My question is as follows; If I were to file chapter 7, would my auto be automatically turned over to the court or is there the possibility of working out a structured minimal payment plan for the non-exempt value (value over $2900) of the vehicle? I am currently less than 30 days late on all bills but have no means for next due payments. If I lose the car altogether, I have zero access to any income potential. Is simply not paying and trying to settle at a later date an option?
I look forward to any responses. Thanks

 

[bigun]

Most trustees will negoitate a payment plan for nonexempt assets.
Your big problem is not debt but, lack of income. Focus on stablizing your finances right now. Bk will be available to you once you can support yourself.

 

[Calboy]

Lack of income duely noted

Thank you for describing the water I'm drowning in but the income thing had occurred to me. I appreciate your acknowledgment though.
After losing my job and condo I happened to catch the news about a country in an economic free fall. I was hoping for something of a methodical approach to the BK or experience with possible outcome of simple unsecured default.
Please allow me offer a heads up. If anyone is approaching a financial disposition of similarity, there is an entire society of idiots out there who will advise you to start a "handyman" business. Look for my thread titled:
"Involuntary minor assault and disorderly conduct".
Is there any more practical input for the above questions?
Thanks

 

[bigun]

I am giving you a methodical approach to bk. You have no assets. You must be able to support yourself post bk or, the bk is a wasted execrise. For ex.-what happens if you file bk to day and a month from now get seriously ill and run up large medical bills? You will have played the bk card and won't be able to file a Chapter 7 for 8 years. Your situation doesn't exactly call for a long drawn out discussion.
As to a default-who knows. Someone may sue you quickly or never sue at all or maybe sue in a few years. Just depends on the creditor and how aggressive they are and what they think they may recover at some point.
And yes, I'm aware that we are in the midst of a recession and jobs are tough to find. That's why I'm suggesting ignoring the debt issue for the time being and focus on stablizing your finances with a job that carries health insurance benefits before you pull the bk trigger. Then, you deal with the debt situation. BK will always be an option-just don't play the card prematurely.

 

[Calboy]

Thanks Bigun. Post BK circumstances are something I didn't even consider. Your input makes great sense.Will a default eventually clean itself up after time or is it an unending haunting? Hope you received my joking in the good will with which it was intended. Sort of going thru altering phases of laughter and tears at this point. Thanks for taking the time to reply.

 

[bigun]

Bk is all about a fresh start. The best to be sure you have a fresh start is try and fix the issues that created the bk before you file. You don't want to emerge from bk with the same set of problems that forced you to file to begin with.
As to default. Who really knows. In Ca. the statutes of limitations {SOL} is 4 years. That means if you get sued after that date you have an affrimative defense. You must appear in court and use that defense. Some people never get sued and some get sued in a year or so. There just seems to be no real method to the madness. If you get sued, the judgment will be diischarged in an eventual bk.
After 7 years, it should fall off your credit report.
I took no offense. Times are tough and people are on edge. I just tried to answer your question as best I could and provide you with another line of though.
Try Bankruptcy Forum or the bk forum at Free Credit Reports Credit Repair Counseling Increase Your Credit Score Debt Consolidation for some other opinions.