I've read many posts on the forum so I'm familiar with some things now on BK. I went to an atty Friday, and he say's I will do Chap. 7. I live in OK. My equity in my house is about nil; appraised at $129K last year, owe $102K, have 2nd for 10K, and gov't amortizing program loan (10 yrs) for $17K. I have $23K in unsecured debt, used cards some in last 60 days. Only large purchase was a PDA for my business at $198. I didn't realize I needed to file for BK til last Thursday. I was sticking my head in the sand, refusing to be realistic.
Reason for BK is two-fold; college daughter got Lyme illness in May, hasn't worked or gone to school, I used CCs to buy supplements and pay doctors that ins wouldn't/didn't pay. She still isn't working or going to class, so I'm having to support her. She did have two part time jobs. #2: I work PT as a massage therapist, was at a clinic, the secretary stopped turning in insurance claims for me (oh well) and I couldn't get her or the Dr to explain what in the world she was doing this for, so I left a month ago, and am working out of my home. Am slowly building my practice back. Lost $2000 that they haven't paid me for yet- I have a letter I wrote to the clinic and a letter back from the DC. I was paying $200/mo rent so that didn't help.
So all of this just put me in a big hole in the last 6 months. I was current on all CC bills til 3 mos ago.
I can afford my house note and utilities just barely, have no extra income to pay off the unsecured debt and don't expect to be able to for a long time.
Question #1:
My 98 Toyota Corolla is worth anywhere from 3295 to 4300 by the Kelley and NADA. The atty said they MAY let me keep up to 4000 value on a car. I don't have anything else to sell, except a couple of rings appraised at about 1200 each. But no one would buy them for that . . used jewelry doesn't bring its appraised value, I don't think. If I want to keep my car (it is a good, stable car for me, in good repair, I've taken care of it) can I pay the difference of what I'm allowed? The atty said something about a relative buying it and selling it back to me . . I can ask him to clarify but I thought I'd ask here tonight.
The car will be one model year OLDER in April (I think??) so it would be worth less . . should I wait til April to file? Would I be sued by these creditors by that time? Or if I file NOW, will it take that long for them to get around to appraising my car . . do they use the value of the car at date of filing? I read the approx. time line for BK proceedings.
If I don't have any other assets to sell, will they be looking so hard for an asset that they will take this car and sell it, just to get 500 to 1000, against my $23K unsecured debt?
Question #2 . . there is a 72 Porsche in my garage, which was given in my divorce decree 4 yrs ago to my daughter. It is not drivable, needs much engine work, and has never been in my name, just my ex's and now my daughter's name. She drives a Toyota, and that has never been in my name either. She is my dependent still (she is 22) but will it be a problem that it is on my property? Of course I can prove that it is not mine, and never has been. But will it make me look rich or something if an appraiser sees it?
Question #3 I have taken 350 sq ft of my 2400 sq ft house as an office in the home on my taxes for the last 2 yrs. That is about 14.5%. Am I okay for the exemptions rule . . I think 25% is allowed.
Question #4 My other daughter who is married (July 03) has had a 69 VW for years, it was in my name (my ex did this for some reason) and then 6 months ago, after advertising it for a year, she sold it for $2500, and I had to sign it over when she sold it. She had it insured on her policy for the last several years . . it wasn't on mine. Are they going to give me trouble on this vehicle?
Thank you for having this forum. It was very helpful to read the threads and get educated about such a scary, emotional thing in one's life.
Karen
Reason for BK is two-fold; college daughter got Lyme illness in May, hasn't worked or gone to school, I used CCs to buy supplements and pay doctors that ins wouldn't/didn't pay. She still isn't working or going to class, so I'm having to support her. She did have two part time jobs. #2: I work PT as a massage therapist, was at a clinic, the secretary stopped turning in insurance claims for me (oh well) and I couldn't get her or the Dr to explain what in the world she was doing this for, so I left a month ago, and am working out of my home. Am slowly building my practice back. Lost $2000 that they haven't paid me for yet- I have a letter I wrote to the clinic and a letter back from the DC. I was paying $200/mo rent so that didn't help.
So all of this just put me in a big hole in the last 6 months. I was current on all CC bills til 3 mos ago.
I can afford my house note and utilities just barely, have no extra income to pay off the unsecured debt and don't expect to be able to for a long time.
Question #1:
My 98 Toyota Corolla is worth anywhere from 3295 to 4300 by the Kelley and NADA. The atty said they MAY let me keep up to 4000 value on a car. I don't have anything else to sell, except a couple of rings appraised at about 1200 each. But no one would buy them for that . . used jewelry doesn't bring its appraised value, I don't think. If I want to keep my car (it is a good, stable car for me, in good repair, I've taken care of it) can I pay the difference of what I'm allowed? The atty said something about a relative buying it and selling it back to me . . I can ask him to clarify but I thought I'd ask here tonight.
The car will be one model year OLDER in April (I think??) so it would be worth less . . should I wait til April to file? Would I be sued by these creditors by that time? Or if I file NOW, will it take that long for them to get around to appraising my car . . do they use the value of the car at date of filing? I read the approx. time line for BK proceedings.
If I don't have any other assets to sell, will they be looking so hard for an asset that they will take this car and sell it, just to get 500 to 1000, against my $23K unsecured debt?
Question #2 . . there is a 72 Porsche in my garage, which was given in my divorce decree 4 yrs ago to my daughter. It is not drivable, needs much engine work, and has never been in my name, just my ex's and now my daughter's name. She drives a Toyota, and that has never been in my name either. She is my dependent still (she is 22) but will it be a problem that it is on my property? Of course I can prove that it is not mine, and never has been. But will it make me look rich or something if an appraiser sees it?
Question #3 I have taken 350 sq ft of my 2400 sq ft house as an office in the home on my taxes for the last 2 yrs. That is about 14.5%. Am I okay for the exemptions rule . . I think 25% is allowed.
Question #4 My other daughter who is married (July 03) has had a 69 VW for years, it was in my name (my ex did this for some reason) and then 6 months ago, after advertising it for a year, she sold it for $2500, and I had to sign it over when she sold it. She had it insured on her policy for the last several years . . it wasn't on mine. Are they going to give me trouble on this vehicle?
Thank you for having this forum. It was very helpful to read the threads and get educated about such a scary, emotional thing in one's life.
Karen
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