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LadynRed? Bigun??

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VaUnicorn

Junior Member
What is the name of your state?What is the name of your state?What is the name of your state?Va

I deleted my message and reposted with some slight changes. But my husband is all over me for answers. Sorry to bother everyone!!

Finalizing the Chapter 7 paperwork. Here are the questions:

1. Virginia has a $2000 vehicle cap and a $5000 unused homestead exemption in the enumeration of exempt property. We have two vehicles - a 96 Nissan that is probably worth 2500 - 3000 (have gotten 1400 -4200 on the assorted pricing websites) and a 79 Chevy pickup that I paid 700 for 12 months ago. May I use the unused $5000 for the Nissan? We do not own anything else of value besides 2 5-year-old computers and our wedding rings (neither of which is worth more than $1000 and they give us $5000 for those). Or is the $10,000 tools, books, machinery, vehicles allowed for our cars to drive to work?

2. Right this second, our income looks great with plenty of disposable. But we've only been working for 90 days (me) and 60 days (husband) and we've barely managed to pay our rent and utilities (past due and current) with what we've gotten so far. (Speaking of utilities, can you include internet access as a utility or is that entertainment?) The disposable that we will have when the last past due utility is paid has GOT to go for our student loans. Should we put the payment we are offering (haven't gotten a firm committment on that either) the student loan people as part of our monthly expenses? Or do we leave it and show the disposable and explain it to the trustee? My best friend just had to file an amended Schedule J because she rented a house between filing and 341. Is it smarter to list what we're GOING to be paying after the discharge or what we ARE paying right this second?

3. Is there anyway with a chapter 7 to force a creditor to accept a payment arrangement that you can afford? The student loan people want 1700/month from each of us and I make 1400/month and he makes 1900/month. That doesn't add very well in my book, but they don't seem to give a rip. All I want is for them to accept a payment that I can make and still pay rent. We know we won't be buying a house for at least 20 years (or until the student loans are all gone), but that is just what we have to do.

4. We have no health insurance and my husband has high blood pressure. His medicine runs $100 every other month, and he is supposed to go and have his bp checked etc at the doctor's every 90 days to 6 months. Do I just add up all of that and divide by 12 for the average monthly medical expense?

5. Last question is not for me, but is for a friend. She has a 401k plan through her work. Is that something to claim on the asset part of her chaper 7? She can't pull it out, she'd pay MASSIVE IRS penalties of course, since she's only 42. She also has a loan from it (she had to pay utilities from being out of work for surgery) that is directly pulled from her paycheck. Is her net pay what her net pay is on her check or does she have to list the net before the 401k deduction and the 401k deduction and loan on the expense page?

I know this is a lot to ask, but thank you whomever can help me with these questions.
 


Who's Liable?

Senior Member
VaUnicorn said:
What is the name of your state?What is the name of your state?What is the name of your state?Va

3. Is there anyway with a chapter 7 to force a creditor to accept a payment arrangement that you can afford? The student loan people want 1700/month from each of us and I make 1400/month and he makes 1900/month. That doesn't add very well in my book, but they don't seem to give a rip. All I want is for them to accept a payment that I can make and still pay rent. We know we won't be buying a house for at least 20 years (or until the student loans are all gone), but that is just what we have to do.

You cannot force payment plans on creditors... you either pay waht they want, or they come after you... There is no law stating that a creditor can accept what you are willing to pay... As for student loans, there are various options, deferrment, etc. that you can try to do...
 

Ladynred

Senior Member
1) VA allows a vehicle exemption of 2K. The unused homestead of 5K can be used for ANY PROPERTY, so yes, it can be used to protect the Nissan. The 10K is only for 'tools of trade'.

2) Internet access isn't a utility, but it is an allowable expense - list it under 'other' - unless you've got cable and its part of the cable bill.

The disposable that we will have when the last past due utility is paid has GOT to go for our student loans. Should we put the payment we are offering (haven't gotten a firm committment on that either) the student loan people as part of our monthly expenses?
Student loan payments are a legitimate expense since they cannot be discharged. Since they are asking you for $1400/mo EACH, I would put down somewhere between your offer and their number, since nothing is finalized yet.
Or do we leave it and show the disposable and explain it to the trustee?
Definitely do NOT leave it out !

Is it smarter to list what we're GOING to be paying after the discharge or what we ARE paying right this second?
Bankruptcy is a snapshot of your financial situation ON THE DAY YOU FILE. So use your CURRENT expense numbers. If that changes between your filing date and the 341, tell the Trustee.

Is there anyway with a chapter 7 to force a creditor to accept a payment arrangement that you can afford?
No, there are no payment negotiations in Ch 7, only in Ch 13 are they any sort of negotiations.

4) YES, add it all up and average it out to get a monthly number.

5) 401K plans are 100% EXEMPT in bankruptcy. However, the repayment could be a problem. 401K loan payments are basically viewed as paying YOURSELF back and a Trustee may disallow the amount and add it back in to her disposable income. If she has no choice in the repayment, if its mandatory, then it may be allowed.
 

VaUnicorn

Junior Member
Thank you

Thanks for the answers. I was figuring that only with a 13 could we "force" payment amounts, but since the only reason we're filing is to get out from under a judgement a 13 is not an option. Since the school loans will not be discharged regardless, they aren't truly affected by the filing. But it sure would be nice to get something from a federal court telling them that NO they can't have 120% of my income!!

Thanks again.
 

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