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WE HAVE an ATTORNEY!! YEAH!!!!

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    WE HAVE an ATTORNEY!! YEAH!!!!

    He had our final Consult Thursday afternoon. We are done going to attorney's offices. Turns out the guy who didn't want a face to face after phone consults until we had our tax situation settled is a decent guy.

    They had notes from our previous conversations so they were up to speed on who we are. First question the attny asked was, did we have our tax issues settled. Yep. He asked how that worked. We said we got a small refund from one state. Where'd that money go? To pay the other state. Then we sold our truck to pay the IRS. He asked if all the taxes were filed and paid. Yep.

    Then he asked if we had any questions. Right off the top, we wanted to know how to deal with our Landlord. You might remember that she sent us the bill for cleaning out the sewer line the last time and expected us to pay her for it.

    Well, she upped the ante. Wednesday, we got a Certified letter telling us we are to now contact some property management company instead of her. Mail our payments there, etc. The letter also stated we had 5 days from receipt of the letter to pay the $250 or "alternate action would be taken". I don't know if that means she'll sue us or evict us or both.

    The attny said MOVE. He said the longer we stay here, the greater our risk of being blamed for more problems with the house. He said what he'll do is file our BK with our CC debts, then he'll amend the petition pre 341 to include the landlord. That would include the $250 repair bill, any unpaid rents, and he'll pad for unstated, as yet undetermined damages as well.

    We learned some interesting things. The Court here is looking at $100/mo disposable income. If you have $100/mo left over, the Court is gonna make you go Ch 13. They now have a way to include the expenses for ownership and operation of a 3rd vehicle. It's still not in the Means Test, but the paralegal said she's found a way to do it and it's legit.

    The one computer, one TV, one VCR, having to itemize children's things applies to Fed Exemptions the attny said. When we were to list our household goods, since we're using State exemptions, we were to consider areas of the house that are common family use. What's in the children's rooms is the children's property the attny said.

    The attny also said to use Goodwill and other Second Hand type store pricing. Not Fire Sale/Yard Sale values, unless we can't find a comp available otherwise. I told him about the Goodwill auction site and some of the prices I'd seen there. He asked if Goodwill has a base starting price. I said Yep. He said fine. We could use that. But then the paralegal, when we were doing the paperwork, said they would probably boost the value of our Household goods up closer to the limit of our exemption, just so it wouldn't look like we were trying to undervalue our things to the Court.

    The paralegal told us it would take about 10 days or so for her to copy all our docs, sort thru and enter all the data, and verify things. Then they would have us come in and read over the petitions to look for errors and such. If need be, she'd make corrections, then they'd prepare the final docs, we'd sign and they'd file. It should all be done by April 15 at the latest.

    We went into the expandable file folder I've been carrying around. We had almost everything with us that they needed to have on file incase we get audited. You shoulda seen the stack of papers. Mortgage, lease, utilities bills, bank statements, pay stubs, evidences of income, CC statements, letters from CC companies, etc, etc, etc.

    We didn't have, and they did need, a copy of a statement from our Mortgage Lender showing the principal balance due. We'd been paying on line, so we hadn't been receiving monthly statements. Since we quit paying our payments, we cannot access our info on-line. They also needed info on our Renter's insurance and auto insurance policies. We'd also forgotten to list what we'd spent on firewood in our expenses, and we forgot to add the piano to our list of household goods.

    Yesterday morning, I called the insurance agent's office and asked them for a print-out about our renter's and our auto policies. I couldn't find any of that stuff. Immediately after I called, I found our auto policies. But I didn't call back. I just decided to pick up the paperwork anyway. Especially for the Renter's info. Good thing I did. The insurance agent gave me a nice printout that showed coverages, dates of payments, and all activity on our acct. with them. Also showed the date prepared and the agent's ID number as well.

    I spent the rest of the morning collecting up the remaining docs they needed to have on file. When the mail came, there were several notes from CC companies. Threw those in the pile as well. And a letter from our Mortgage Lender. Then I took some time to call around about rental properties. We came up with one very nice sounding house, great location, keeps the girls in the same school district, so I made an appointment to see it.

    Countrywide is going to start Foreclosure soon. The paperwork they sent not only showed the payment amount due, but they'd also included our escrow history for all of 2005, and a payment history for all of 2005 as well. What a gift. Everything the attny needed in one, nice, neat, and tidy package.

    Yesterday afternoon, we spent 3 hours in the car. We ran to the bank to deposit Hubby's paycheck. I'd written the attny a check for payment in full Thursday afternoon but had an odd feeling about it. Got home, checked on-line. The check would bounce. We were about $100 short. I forgot I'd grocery shopped and we'd bought a tank of gas. First call Fri morning was to the attny's office to ask them to hold deposit on that check. I explained that Hubby got paid and the money would be available today. She was OK with that. Said they'd just deposit the check on Monday instead. Phew!

    Ran by the auto insurance agent's office and picked up the paperwork. Ran to the attny's office and dropped off paperwork. Then went to look at houses. We found one!! Gonna meet with the Landlord today to sign the lease and pay security deposit and such. We're gonna pay for the last half of April to give us 2 weeks to move in, and start our lease on May 1. Rent is close to the same so no problem with I and J there.

    I pray this all works out. I am not comfortable leaving this house. We said we'd stay here a year. We were raised when you give your word, it's a contract. You abide by it. My conscious says that's what we should do regardless of how the Landlord acts. But my logical mind knows the attny is right. Every day we stay here is a risk for us with this Landlord.

    Cross your fingers, your toes, your eyes for us. The ticket has been punched and the ride has started. Now the fun really begins!!
    Filed Ch 7 - 09/06
    Discharged - 12/2006
    Officially Declared No Asset - 03/2007
    Closed - 04/2007

    I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

    Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

    #2
    I look forward to reading your valuable posts, as they help me deal with the anxiety and depression that I am feeling myself. Although my situation and everyone else's on the forum is different I can really say that I feel for you and am rooting for things to get better for you. Keep us posted.

    Comment


      #3
      Thanks Gak!!

      We appreciate the support of the folks on this Forum so much!!

      Deciding and filing BK are traumatic. To have to do it alone with no support, no encouragement, no advise is unthinkable.

      I hate why we've all been joined together and wish we could have met under better circumstances, but I really do appreciate each and every one of you guys.
      Filed Ch 7 - 09/06
      Discharged - 12/2006
      Officially Declared No Asset - 03/2007
      Closed - 04/2007

      I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

      Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

      Comment


        #4
        Dear Sinking:

        Oh I am so happy to hear that you have found an attorney! It sounds as if you were told the same things we were. We were told to use garage sale pricing for our things as well. They also told us that we didn't have to count the kid's property either. I wish we could've held out until we could get our son a vehicle to drive to school and work, but we'll just save our pennies until we can.

        Yes, the support and information here are great. I can't imagine having to go through this alone. Maybe we will all meet someday under other circumstances.

        Have a good weekend!

        jane
        Filed: 2/24/2006
        341 mtg: 4/4/2006:angel:
        Discharged: 9/25/08!!!!!:yahoo::yahoo::yahoo::yahoo::yahoo:

        Comment


          #5
          I am joyous to know that your journey has started...

          I can attest that you come out alive on the other side. Once, you sign the docs, you begin to sleep at night again up until maybe a few days before the 341 meeting, and then after that sleepless nights no more...

          You just wait on the discharge, and then rebuild your credit life...

          I am so happy for you, I know it has been a long journey for you!

          Comment


            #6
            Sink, are you filing a chapter 7 or 13? Good luck either way.

            Comment


              #7
              Congratulations Sinking Fast, I paid my attorney today, it gets filed electronically on Monday.
              Chapter 13 Filed 4/03/06 :blink: 341 Meeting Complete 5/11/06 :yes2:
              Plan Confirmation 6/16/06 :yahoo:
              Discharged: 1/5/2010 :yahoo::yahoo::yahoo::yahoo:

              Comment


                #8
                Originally posted by FoolAndHisMoney
                Sink, are you filing a chapter 7 or 13? Good luck either way.
                That's a good question, FAHM.

                We went into the Consult thinking we'd be a Ch 7. When we started Consults in Jan, attnys didn't know whether or not we could include Mom as a dependent. Since then, it's been decided if you claim them on your income taxes you can claim them for BK. That put us well under the Median, especially since the new numbers that came out.

                When we were at the Consult, the attny says he wants to know Mom's income. I said it's only Soc Sec and SSI is exempt. If we add that in, it will throw us over the Median. The attny says he'll throw it in on top, then deduct it back out later. A little later in the Consult, discussing our kids, attny asks what son does. We said son goes to college and works to pay his school expenses. Does son contribute to the household expenses in any way from his pay check? Nope. But, the attny wanted to know how much son makes/month anyway so we told him. Paralegal jotted it down. I had an uneasy feeling about that and when we got home I quickly check the schedules and son's income.

                If the attny includes son's income, even tho son does not contribute to the household expenses at all, it's enough to throw us over the Median.

                But the attny didn't charge us Ch 13 fee.

                Most attnys here charge between $700 and $1000 for Ch 7. Ch 13 runs $2500 to $2800 for attnys' fees. This attny charged us $2000. When I was calling around for Consults, this attny was higher than all the others to start with. His base for a 7 was $1200. His paralegal said he charged according to what he'd have to handle for the client. In our case, he was automatically taking on a Foreclosure with the house and having to use exemptions from a different State. He's going to Consult with an attny in Missouri for clarification of some of the wording in the Statutes. So maybe that's part of the reason for the higher fee.

                Under New Law, if an attny files a 7 and it gets booted to a 13, the attny is fined by the Court. One attny we Consulted with told us if he takes in a 7 that gets booted to a 13, he'd have to pay $2K outa pocket to the Court. He said under the Old Law, he'd push it a bit and take in borderline 13's as a 7 just to see if he could get it for the people. But there was no penalty then. Now, an attny has to be very sure a 7 really is a 7 cause if it gets booted to 13 they get fined.

                So I think we're gonna be a Ch 7, but I'm not sure. Not much else we can do at this point. We can't afford to go back to paying the CC's so we've gotta move forward and hope for the best.
                Filed Ch 7 - 09/06
                Discharged - 12/2006
                Officially Declared No Asset - 03/2007
                Closed - 04/2007

                I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

                Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

                Comment


                  #9
                  Glad you found an attorney you feel comfortable with - that's very important.... And yes, now, his butt is on the line if he files incorrectly with the Court.

                  Hopefully, it will all be filed soon - get your 341 scheduled and begin the "waiting" process....

                  Get ready for anxiety and nerves to flair up - just try to stay calm and let the process take its course.

                  Once its filed its out of your hands and in the Courts.....

                  Good luck, keep me posted

                  Minny
                  Minny

                  "It's amazing the paths that our feet sometimes follow in life".

                  My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

                  Comment


                    #10
                    Yeah sinking I am glad you were able to find an an attorney. It sounds like they are really on the level and are addressing any and all possible issues like clockwork. I also agree with them on moving out of that rental. Greedy and horribly cheap landlords like that will continue to blame the same problems over and over on each and every tenant they have, and continue to keep their security deposits over it.

                    Comment


                      #11
                      Is it the Means Test or Schedule I and J

                      Sinking,

                      You comment that you are concerned about qualifying for the Means Test. Are you sure that is the issue, or do you show disposable income on your Schedules I and J?

                      I also have a house in foreclosure. My attorney actually considered this an advantage for the Means Test. He asked if I had received an "Acceleration of Mortgage," and I had, and I am sure you have as well. Since the mortgage company accelerated the mortgage, the entire balance is due within the next sixty months. Therefore the entire balance can be divided by 60 and placed in the secured debt deduction portion of the Means Test. If this is your case as well I am sure you easily pass the means test.

                      After that I run into a similar problem with schedules "I" and "J." In "I" and "J" it might be that I still have disposable income, as my wife and I make a good living. Sounds like you may be in the same situation.

                      If I am forced into 13 it will be a mess, not just because I am whining about being in a 13. In a year our mortgage payment is going to sky rocket(from $2,800 to about $4,100), and there will be no way to complete whatever 13 plan we have. I am hoping that the trustee sees and understand the futility. We are pointing out this enormous increase on schedule I, where it asks if any of the items are expected to change.

                      Good luck.
                      Filed..................03/31/06
                      341 Meeting............05/10/06
                      Discharge..............07/17/06
                      Case Closed............07/17/06

                      Comment


                        #12
                        I don't know if he's gonna include son's income or not. They're not supposed to if the family member does not contribute to the household expenses. So we'll see.

                        During the chat with the attny, he said the US Trustee is pushing really hard for Ch 13 plans. He made it sound like there's no more figuring in that $100 to $166 range, if it's 25% of debt. The US Trustee is pushing for, can you pay back $6000 over 5 years??

                        When the paralegal asked how much we had left at the end of a month, we couldn't answer her question. She looked at us like we were insane. Then we explained.

                        Before we went straight cash, we had a little left in our savings to pay bills we knew were coming. Taxes and auto insurance. Then our Federal was so huge that we had to sell the truck to pay it. We cancelled the extended warranty and the auto insurance policy on that. And that money has already come back. We've had such odd, larger amounts coming in and going out that we haven't had a stable month yet to tell.

                        She said, "So you really have no idea??" So I said that the week before, when we hadn't received the extended warranty and auto insurance money, we had our rent and other bills money set aside. Above that we only had $100 left to make it to pay day. We were checking gas tanks, pantry, freezer, to see if we could eat and get around for a week and only have to buy milk and bread. So she wrote down $100.

                        Thankfully, sorta, paying the attny in full up front took all the money we got back from the warranty and the auto insurance policy cancellation.

                        Also, when she was writing down our expenses, some numbers she put + signs beside. That's when she explained that the attny knows what the Court expects to see and not be surprised if the petition #'s look dif than what we were writing down right then. The + sign areas were places that the attny to pad some based on what we said compared to the allowables in the schedules.
                        Filed Ch 7 - 09/06
                        Discharged - 12/2006
                        Officially Declared No Asset - 03/2007
                        Closed - 04/2007

                        I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

                        Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

                        Comment


                          #13
                          Just a guess here on my part, but,.................

                          I'm thinking when they wrote the New Law they thought in their minds they'd catch a lot of people in the $6000 to $10,000 and 25% of debt payback range forcing those people into Ch 13. People who under Old Law woulda automatically been 7's. And it just ain't happening. So orders have come down from above to tighten the noose.

                          From what I heard from the attny at that Consult, it don't matter what your income is. If you can pay back $100/month - $6000 total, you'll be Ch 13.

                          Which is kinda scarey. It's not the wording or the spirit of the Law. It's abuse. Twisting the law to get the intended result they were originally seeking.
                          Filed Ch 7 - 09/06
                          Discharged - 12/2006
                          Officially Declared No Asset - 03/2007
                          Closed - 04/2007

                          I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

                          Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

                          Comment


                            #14
                            Well,...............

                            And I said $100 left to make it a week. That woulda been a $100 for milk, bread, bottled water, etc. By the end of the week, there wouldn't have been $100.

                            Right after picking up the mail that day, I went to the grocery to pick up a few things. I spent $50 right there, that day.

                            The day we went to the attny's office for the Consult, Hubby needed to get gas. He filled up the tank and that was $45 right there. Without the extra money coming in, we probably would a had nothing left at the end of the week.

                            We woulda been digging in the sofa, car cups, and change jars to make it the rest of the way to payday.
                            Filed Ch 7 - 09/06
                            Discharged - 12/2006
                            Officially Declared No Asset - 03/2007
                            Closed - 04/2007

                            I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

                            Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

                            Comment

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