Question about Chapter 7

[Brokenow]

Hi,

I'd like to say hello to everyone, after about 8 hrs of reading through this forum I almost feel like I know you

It looks like we are going to have to file for BK and it also looks like C7 is the way we are going to have to go.

We have been down the road, sold all the cool stuff to keep up with CC payments after they jacked interest rates, robbed peter to pay paul, stopped paying most CC's, been tortured by phone calls, etc....

We are 30k under the median for our family, and our unsecured debt is over double our income and most interest rates are around 29%

We own a house we want to keep, less that 5k in equity in it, my old rusty pickup, and a paid off mini-van worth 9k KBB.

I have a couple of issues maybe someone can help with:

1. Over a year ago our inlaws paid off a CC for us directly to the CC company, they put it on one of thiers CC's with a much lower rate, and we have been paying them some money sporadically never more than $150 per month and some months nothing. The CC was 12k.

2. In Jan of this year they paid off our van (10k) as a gift, not to be paid back. They got an inheritance and spread it around.

Does anyone have any input on this situation, I would really appreciate it

BTW we live in Minnesota

Thanks in advance.

[Brokenow]

Hi again

I was hoping someone might have an opinion about this stuff, anything would be great. I just wanted to bump it up as it fell off the first page

Thanks

[keepmine]

Since they paid the CC directly, it's no issue. Just stop repaying the inlaws until the bk is discharged.
The van is another story. If it's above what Mn. allows you to exempt, you may lose it or, have to buy back the unexempted amount from the trustee.

[Brokenow]

Thanks keepmine, I was worried about the payments being insider, is that the right term?

Also, would it be allowed to sell the van and buy an SUV for around the exemption price, its about 4k I think and using the rest to pay a lawyer and catch up on household bills before we even file?, we have been wanting to sell it anyway.

Thanks

[keepmine]

There is no insider transaction or preference issue since, your inlaws paid the cc directly. Just stop repayments until your bk is over.

Selling the van and using the money for legal fees and living expenses plus, a replacement ride is OK.