Chapter 7 - Souvenirs, folk art, religious items - have VPP, but pennies on dollar?

[NBrazil]

I have read through this thread and have a few comments/observations.

1. The comments above are good and give you different points of view. None of them should be discounted. You have options and they have been pointed out.

2. As you know, you are required to disclose all assets including collectibles, art objects, gold bars, etc.

3. If you are concerned over the “liquidation” value of the assets (gold/silver has a stated market price), you get the items appraised. You do this to confirm your attny’s belief that your valuation is too high and you do this for piece of mind. When we have issues like this we contact a local auctioneer who happens to be the auctioneer used by bk trustees. Ask your attny for the referral.

4. I believe Georgia is an “opt out” state meaning you can only exempt (protect) in bk what is exempt under state law. Georgia has both a household goods exemption and a wildcard. I do not practice in your state but my guess is that your “items/souvenirs” will be under the allowed exemption(s). You and your attny can work this out.

5. If you have on-going medical bills, you may want to wait a bit to file (but not 4 years - see below). Try to wait until your treatment is as close to being over as possible (I recognize that it is a chronic issue). Remember, debt incurred after filing you will be responsible for.

6. Waiting 4 years until you retire makes little sense and such has little to do with whether or not your become “judgment proof”. You are worried about this now therefore, unless you have an iron constitution, waiting is going to increase your anxiety and lead to a decease in your overall health, something that appears to be an issue now.

7. I have no problem with you refinancing the home to consolidate two mortgages. Just remember to disclose the transaction as a “transfer” on question 10 of the Statement of Financial Affairs. It is a “transfer” since you will be giving a new lender a security interest in the home and utilizing the loan to pay off the other two lenders (who will release their liens).

I see nothing “complicated” here. It sounds to me like the attnys you have talked to are not worried about your situation. As was previously mentioned, once you go through all of the details the attny will be in a better position to finalize your options.

I hope this helps in some way.

Des.

1) Thank you all.

2) Yes, the only things of value are actually on the VPP

3) I'm going with what the attorney recommends

4) That's what she said

5) Not relevant. I will always have ongoing medical bills, that is the nature of chronic illness, you don't get better and they never end. I have, however, chosen to stop the "snipe hunt." That is to say, running around trying everything I can within reason because I cannot (nor was I ever able to) afford the gold standard treatment (would cost $5,000/month). I will just suffer in near silence as long as I can until I can no longer work. (Eh, why not say it: Chronic Lyme and co-infections… if you know about it, then you'll go "ah ha," if you don't - well, you really don't want to encounter it.)

6) Not really waiting 4 years, what I'm saying is I will work as long as I'm able to up to a maximum of 4 years when I will be 66 1/2 because I'm already eligible for early retirement (at a whopping $1152/month). I can take this while applying for SSDA (a whopping $1650/month - livable with a roommate if I can fix the broken plumbing before the BK). However, this is where Plan B comes into effect.

7) Hate having to do this. Bank with HELOC saying they can roll it into a HELOAN instead of a mortgage with a fixed rate and time. Depresses me because I was finally making headway.

Yes, it does help. I was so ill 6 months ago I was on the verge of being fired (and they still are making accommodations for now) - and was advised to default instead of bankrupting because with only SS and food stamps they couldn't come after me.

Just (typically) really depressed. The "jewelry" I have (not much) again isn't typical, it is religious. For instance, I received a gold cross when I was officially ordained as a Priest… but failing health forced me to withdraw from active duty. Obviously, such intangible values don't count in this case.

Oh, and I have two cats. Got them when a psych counselor said that animals would help to distract me from my (then so-called) "disease." Not as effective when the condition isn't "in your head." I'm hoping that one doesn't have to rehome animals as part of a BK - they cost about $120/month.

I will take this all under advisement and, since I already paid for the consult, have it. Lyme sucks and is becoming an epidemic - but that is off topic. Sigh. I'll let her tell me what I could and should do. (Obviously I have to have enough cash on hand to pay her - and I hope to get the plumbing fixed before I do this. Oh, I know things happen, my "reserve" is a few thousand dollars in a retirement account which I know won't be touched. I can access it within 3 days - so I could have enough to fix the car… etc.)

Okay, too long winded, I'm done. Thanks.

 

[NBrazil]

Proactive

I (unintentionally) lied. Another comment… about "pro-active" filing…

I've seen it, an employee in the office had to do that after a divorce and she saw her ex was charging and not paying. She didn't wait. Interestingly it only dropped her FICO score 200 points and now, 3 years later, she is sterling.

As for me, I don't see any choice because I know I won't be able to make my bills in a couple of months (using last of reserve). Of course I could stop now and save the "reserve," (as suggested), but this "reserve" is less than $1,000 and won't make a difference in my cash flow.

My health also would suffer from the barrage of bill collectors. I just don't see the point in not paying and waiting to file over filing when I can't pay. Maybe it is the way my brain is wired.

But again, due to previously mentioned issues, it may be best to go to Plan B (again, I will see what attorney recommends, keeping in mind, of course, they "want the business.")

I really appreciate the polite and professional responses.