Filing Bankruptcy

[Nikki74]

What is the name of your state? Missouri

I called an attorney yesterday and she is sending me a packet to review. I lost my job yesterday and my husband is waiting on approval from Disabiltiy. I have 3 kids and my husband has child support on my step daughter. We have a mortgage of $524 a month and a truck loan of $380 a month. I have a student loan and I realize I can't file on that.

The debt on the truck is around 18500 and the debt on our credit cards is close to 25000. We also have a 99 Chrysler, a 90 Van, a 88 Festiva, and a 79 truck. Out of the 25000 credit card debt about 1200 is our furniture. We have a spare set of furniture too that is paid for. We also have debt to Lowe's and Home Depot which is a part of the 25000 credit card debt.

So my questions are:

1. What will we have to get rid of? House? Vehicles?

2. Will the furniture company come and get the furniture? We have had it for 2 and a half years.

3. Will Home Depot and Lowe's come and get anything we have purchased from them?

4. Will it make things easier if we sell the truck instead of including it in the bankruptcy or does it make any difference?

5. The attorney said creditors could file a lawsuit against us and if they do we will have to pay more then just the $810 they are charging to do this for us. What happens if a law suit is filed? What are the chances of that happening?

6. Can you keep any of your debt, say keep the furniture payment when filing bankruptcy so we can keep the furniture?

Any other advice would be great. Thanks.

 

[freespeech]

Why aren't you asking these questions of your lawyer????

 

[Nikki74]

Why aren't you asking these questions of your lawyer????

Because the attorney hasn't accepted our case yet. I have to fill out the packet and send it back and then we will have a consultation. I am curious now and I thought that was what this website was all about.

 

[LostinMI]

You are right Nikki74, that's what this website is for.... to ask questions! I will not even attempt to answer any of your questions -- because I am here learning myself! But be patient, someone with the knowledge to answer your questions will do so.

 

[Nikki74]

You are right Nikki74, that's what this website is for.... to ask questions! I will not even attempt to answer any of your questions -- because I am here learning myself! But be patient, someone with the knowledge to answer your questions will do so.

Thanks.

Nikki74

 

[maryks]

It has been my understanding (I could be wrong) that you could choose to keep paying on an item rather than loosing it in bankruptcy, whether it be a car, house, furniture, or anything else.

If you could sell the truck and either break even or come out ahead (you owe less than the truck would sell for) then it might be worth asking the attorney about, but I'm not sure how that works.

One thing to ask the attorney: do you have any break from the child support, house payments, truck payment and so forth if you file? You are making payments of at least $1000/mo. You don't want to slip right back into the same debt cycle after you file. Depending on your monthly income, how long you might be off work, other monthly expenses, and so forth, to keep those debts may put you right back in the same situation you're trying to get out of.

 

[Nikki74]

It has been my understanding (I could be wrong) that you could choose to keep paying on an item rather than loosing it in bankruptcy, whether it be a car, house, furniture, or anything else.

If you could sell the truck and either break even or come out ahead (you owe less than the truck would sell for) then it might be worth asking the attorney about, but I'm not sure how that works.

One thing to ask the attorney: do you have any break from the child support, house payments, truck payment and so forth if you file? You are making payments of at least $1000/mo. You don't want to slip right back into the same debt cycle after you file. Depending on your monthly income, how long you might be off work, other monthly expenses, and so forth, to keep those debts may put you right back in the same situation you're trying to get out of.

I don't think there are any breaks on child support. We plan on getting rid of the truck if it means we sell it or file bankruptcy. I can't have that payment anymore. Right now our bills are $2300 a month and rising. If we file bankruptcy they will be about $1100 and that counts child support. I will never get another credit card, I know that much. People always say "oh you need one for emergencies" well I'm not taking that chance.

Thanks for the reply.

Nikki74

 

[bigun]

Here are Mo. exemptions.
http://www.thebankruptcysite.com/bankruptcy-exemptions/missouri.php

We really need more info. How much equity in your home for one and in your truck? WHat are the older cars worth.

Since the furniture is a secured obligation, you can reafirm it if you choose. If Mo. does not require a reaffirmation agreement, you can just keep paying as before and keep it. Your lawyer will explain all of that. Same answer to Lowes or HD.
Nobody can tell you if they'll sue or not. If they sue before you file and win, the lawyer will have to get the judgment vacated post bk and that's another legal fee.

Post back with some specifics and we'll try and help.

 

[Nikki74]

Here are Mo. exemptions.
http://www.thebankruptcysite.com/bankruptcy-exemptions/missouri.php

We really need more info. How much equity in your home for one and in your truck? WHat are the older cars worth.

Since the furniture is a secured obligation, you can reafirm it if you choose. If Mo. does not require a reaffirmation agreement, you can just keep paying as before and keep it. Your lawyer will explain all of that. Same answer to Lowes or HD.
Nobody can tell you if they'll sue or not. If they sue before you file and win, the lawyer will have to get the judgment vacated post bk and that's another legal fee.

Post back with some specifics and we'll try and help.

Our home appraised out at 79000 2 and a half years ago. We had a good down payment so we owe 60000 now. We owe 18500 on the truck and it may not even be worth that, probably 17000 or so. We could probably get about 600 for one of our other vehicles and maybe 1000 for another one. So far I am current with all my payments, but now that I don't have a job I wonder if I should contact the creditors and explain that I lost my job or what?

 

[bigun]

If you're really going to file, stop paying the unsecured creditors. It's money down a rathole.
You need to get a recent apprasial on the house. If you're too far over that $15K exemption that could be a problem.

 

[Nikki74]

How do I know which ones are secure and which ones aren't?

I have a:

Line of Credit
2 Visas
4 mastercards
3 Department stores
Circuit City
Home Depot
Lowes
Furniture Store
Credit Union - Truck payment
University Veterinary Bill - $585.00
Student Loan
House Payment
Child Support - Husbands

My husband has one credit card with a $300 balance and he is an authorized user on 2 of my mastercards. His credit never was real good so we always applied for everything in my name. Most of the stuff on his credit report is from 7 - 10 years ago.

I think I read that when you are married you get to double the 15000 for the equity in your home and then you get to add a certain amount for each dependant you have.

Thanks.

 

[djohnson]

Secured is where the creditor has a lein on the property like your car or truck or house. Regular credit cards are unsecured as they could be used for anything. The furniture depends on if it's on an open card or you signed something specifically for the furniture.

 

[maryks]

I don't know about legally, but I would call the creditors just for good conscious. Let them know that I had lost my job and ask them to work with me for a month or two, kindly request that they not assess fees for late payments and assure them that I will do all that I can. Don't tell them that you are planning to file bk, and don't get upset or angry on the phone, no matter what they say or do. Also, don't make promises to pay what you can't or won't. Just assure them that you will do all you can and would appreciate their understanding and assistance. If you are up to date on all payments right now, you might get at least a few of them to agree to a payment plan, and to knock off some interest and fees or not assess more for a period of time.

I know this is contrary to all credit pursued people... that is why it sometimes works.