Anyone see any pitfalls for me

[Vikingfan]

I've read a lot of post for awhile, so i now decided to take the plunge.
My story-have about 9 cc 35,000 debt, 12,000 of that debt is a line of credit loan.
Me wife & 2 kids moved from Calif to Missouri (big drop in income), I used to take home 3,200 monthly and wife 2,100 monthly. Now I'm about 1,450 and wife 1,500 monthly. I'm getting all the necessary doc together, but wondering if I'll have any problems since i made a balance transfer 5,800(WaMu) in early Nov and in the 1st week of Dec $600 convenience check(Cap1) and a couple of cash advances from Cap1 that same week at a casino $200 and a couple of $100 advances. I've had no cc charges since 1st week of Dec, planning to file mid March or early April.

I've already opened a new bank acct as one of my cc is at the bank im going to list. I guess really im wondering if the exmptions I get from Calif (have to use them since I haven't been in Mo long enough) will cover my truck. Wife has a car we intend to reaffirm but my truck is paid for. Blue book says it's worth anywhere from $4,000 to $4,900. Also since my wife is on the title, can we both claim the car exemption for it. I'm not too concerned about the house(we are going to reaffirm) because we only bought it 6 mos ago and have little to no equity in it. Just wondering with the huge drop in income will the trustee give us any problems because of the $500 in advances at the casino and the bal tsnfer on the other card, even though both will be out of the 90 day window.

[HHM]

California has a weird, 2 scheme exemption program, when you file, you have to chose one or the other exemption exemption scheme. Also in CA, married couples are not allowed to double exemptions. In any event, neither scheme allows for enough of an exemption to cover your truck, The vehicle exemptions are $1,900 for system 1, and $2,775 for system 2. Do you happen to use your truck for work (no, not just commuting). But it appears you will not be able to exempt the value of the truck.

http://www.californiabankruptcy.info/exemptions.html

The major problem would be the large balance transfer, $5,800. The other cash advances you mentioned are too small to be of concern. At a minimum, you need to wait 70 days from the date you made the last cash advance before you file, to be on the safe side for the small amounts. And given your debt load and income, you have time. The $5,800 balance transfer is a large enough balance to solicit an Objection to Discharge from WaMu even outside the 70/90 day rule. If you can wait six months from the date you made the balance transfer before filing BK, you might be ok...but if you file anytime within the next 6 months, you should probably expect an objection to discharge. Note, unlike the 70/90 day rule, which is in the BK statute, the six month guideline for balance transfers if more a practical guideline. Outside the 70/90 day rule for cash advances/charges, the creditor has the burden of proving that you made the charge without a reasonably expectation of being able to pay it...the further back in time the creditor has to go, the harder that gets to prove. Essentially, the creditors has to prove you were in substantial financial distress when you made the transfer, and most people, 6 months before filing BK, are not that far gone.

The objection is not the end of the world, once you file BK, usually what happens is that the creditor will accept a lesser amount, via a reaffirmation agreement (sometimes as much as 50% of the balance) and allow you to make payments (usually up to 12 months, sometimes longer).

In any event, if you are committed to filing BK, you should stop making payments to your credit cards (if you haven't already), after all, why throw good money after bad.

[Vikingfan]

Thanks for the reply HHM

I was afraid that you were going to tell me that about my truck, it seems calif bankruptcy laws are really out to screw the debtor. I haven't stopped paying my cc's yet still current, but plan on next month(just to delay the phone harrasment). ...So you think WaMu will challenge the bal-xfer even after about 4 1/2 to 5 month window? I hope not but you're probably right.

You don't see any way I could keep my truck 2003 toyota with about 105,000 miles on it. It USED TO BE my work truck in calif(thats why it has high milage) but now it's just my commute vehicle here in Mo.

I may try to wait 6 months, I just don't want to be garnished before then.

P.S. Also if I have 3 or 4 months worth of expense recipts(groceries etc)
/paycheck stubs and not 6 months worth, will this cause me some problems.
Thanks.

[SinkingFast]

Our experience was similar to yours. Job loss. New job in a different State. Required us to move. Hubby moved first then the rest of the family came later. House didn't sell. We paid rent and house payments for a year. Ran up tons of CC debt. Had to file using Out of State Exemptions.

The thing you have to keep in mind is you cannot file BK until you've lived in the new State for at least 180 days. So you'll have to wait 6 months from the time you officially established residency in Missouri.

As HHM already explained. You'll have to use CA Exemptions.

A tip for the value of your cars,........... Use Edmunds.com as Edmunds goes into more detail than KBB. At Edmunds you can factor in the condition, even the color of the car, as well as mileage. Then what our attny did was average the 3 values. Retail, Private Party, and Wholesale to establish the values of our vehicles. If you have any body damage or repairs needed, document those with repair estimates. Your attny can ding the values of your cars based on work that's needed.

Quit using your CC's now. Cut them up if you need to. Quit making payments. And learn how to live totally on cash. That way, you put time between your last charges and your filing, AND, you'll learn your true living expenses for when you do file.

Here's a link to a BK Expenses Calculator for you:

http://www.ca-bankruptcy-attorneys.c...alculator.html

Some expenses are easy. You pay them every month. Other things only happen once or twice a year so they are easy to forget. Then there are things you just don't think about. Like kids' school activities fees, lunches, firewood, newspaper subscriptions, and such.

Keep your receipts for everything. Grocery shopping. Whatever. Keep your receipts. More than likely you won't be asked by anyone to see them. But if you do get investigated by the UST's Office, you'll have them as back up. Plus you can use your receipts to establish you Schedule J expense amounts.

If you have old CC statements, hang onto those too. Just in case.

Better to have it and not need it, than need it and not have it.

Last thing,........... Be patient. The longer you wait, the better. The more time you put between your last charges and your filing, the better.

[Vikingfan]

Thanks sinking fast,, one last follow up ?

First let me state that being in state for 6months before we file should not be a problem. I sent my wife ahead of me in June when she started work, I came here in mid September and want both of us to file in mid mar/early april.

Last cc charge 1st week Dec, last Bal xfer 1st week Nov.

Thanks for telling me about Edmunds.com Im sure that will help me I have a smashed drivers door and bented fr and rr bumpers.

You said they MAY not ask me for expense receipts and such correct? Thats what I was unsure about, because If I file in mar/apr I will only have about 3to4 months worth of grocery/gas/utilities reciepts and not 6 months worth and I will have about the same amount of pay stubs/cc statements.

Calif exemptions have no "wildcard" that I could use and I think the biggest auto exemption they have is about $2,700. My wife thinks Im going overboard trying to leave no stone unturned, but I just want to try to keep my truck (if possible) and discharge WaMu.

I filed chapter 7 before in 1994, it was SO EASY and PAINLESS, but today it seems you have to plan it like you're an finance expert, LOL.

[Spartan]

http://www.bankruptcyaction.com/moexemptions.htm

How long does he have to live in Missouri before he can use the Missouri exemption? 2 years?


Edited: Nevermind. I found the answer. It is 2 years.

[SinkingFast]

If you select System 2 of the CA Exemptions, you can apply any unused portion of your Homestead Exemption as a WildCard to anything you want. If you don't need all of your Homestead Exemption to cover your equity in your home, that may be one way to cover your truck.

Just a thought for you.

Wanted to add,..........

Saving the receipts is just a CYA and to help you with Schedule J. Know exactly where your money is going. Chances are, no one will ever ask to see them.