Some miscellaneous questions.

[Ineedhelp2]

I own a car that is well within the allowed exemption.

I also own a van that broke down. This one has a $2,000 title loan, but it now needs a new engine, and I would estimate that it is worth $1,000 or less as it is, although I eventually would like to fix it and keep it. What would I have to do with it, if anything? What would I do about the finance company who has the title?

I own another car that has been sitting for a couple years and is probably worth $2,000 or less. It needs some repairs. My younger son needs a car and I wanted to fix it and let him use it. Would I be able to keep a second car for this purpose? I suppose I could give it to him, but would that look suspicious? Besides that, he would then have to be on his own insurance policy which I think would be much higher than on mine.

Am I allowed to own any business equipment? I'm self employed and currently have just a couple computers and a professional camera. I would like to buy a new camera, but don't know if they separate business needs from personal, or if there is only so much equipment I can keep.

When is the "snapshot" of my financial situation taken? What happens if between that time and the filing day I would get a large unexpected payment? For example, I expect that I will eventually get a $10,000 commission for a project I've been working on for a long time (But it is not 100% certain. The deal could fall through). It might happen soon or it might not be for another six months. But if it happens just before I file, what do I do about it?

[Minnymouth]

I own a car that is well within the allowed exemption.

I also own a van that broke down. This one has a $2,000 title loan, but it now needs a new engine, and I would estimate that it is worth $1,000 or less as it is, although I eventually would like to fix it and keep it. What would I have to do with it, if anything? What would I do about the finance company who has the title?

This car would still have to be paid for in order to keep it.... it would probably fit into your exemption or on a wild card...

I own another car that has been sitting for a couple years and is probably worth $2,000 or less. It needs some repairs. My younger son needs a car and I wanted to fix it and let him use it. Would I be able to keep a second car for this purpose? I suppose I could give it to him, but would that look suspicious? Besides that, he would then have to be on his own insurance policy which I think would be much higher than on mine.

You cannot transfer anything prior to filing bankruptcy. This vehicle could be siezed and sold, but probably not worth the effort on the part of the Trustee.

Am I allowed to own any business equipment? I'm self employed and currently have just a couple computers and a professional camera. I would like to buy a new camera, but don't know if they separate business needs from personal, or if there is only so much equipment I can keep.

Your business interest should be kept separate from your private stuff...... just creates an extra problem for you...... Trustees will want to see proof of business assets, income, etc.....

When is the "snapshot" of my financial situation taken? What happens if between that time and the filing day I would get a large unexpected payment? For example, I expect that I will eventually get a $10,000 commission for a project I've been working on for a long time (But it is not 100% certain. The deal could fall through). It might happen soon or it might not be for another six months. But if it happens just before I file, what do I do about it?

If you get these funds before filing - its income to you, you must list it and Trustee would probably seize to pay creditors..... After you file, up to one year AFTER CLOSING, the Trustee can still seize a windfall of money such as the payment of $10,000 to pay your creditors with.....

The "snapshot" of your finances is the day you file........ but if you know you have funds ($10,000) that might be coming in, then you have to make them known also..... this question will be asked at the 341 meeting..... you won't be able to keep it hid...

My suggestion is have a consultation with 3 attorneys who handle business bankrupty cases by self-emplyeed people...... these consultations are usually free.....

Hope this helps,

Keep us posted.

[tanya3670]

So does this also apply to tax returns? If they can seize up to 12 mths after and I am filing in mid-sept "hopefully" I will be discharged my mid-feb I have no assets.. but I will file my tax return around mid-march will I have to report this will they seize this? I have made sure through out the year that I have only paid enough that I dont owe any money and I dont get any money except for the earned income credit and child care tax credits... Will they take this?

[SinkingFast]

So does this also apply to tax returns? If they can seize up to 12 mths after and I am filing in mid-sept "hopefully" I will be discharged my mid-feb I have no assets.. but I will file my tax return around mid-march will I have to report this will they seize this? I have made sure through out the year that I have only paid enough that I dont owe any money and I dont get any money except for the earned income credit and child care tax credits... Will they take this?

Typically, Trustees are interested in income tax refunds of filers who file during Tax Season and late in the year.

With you filing Sept or later in the year, the Trustee could stipulate, as a part of your discharge, that the Trustee takes next year's income tax refund if any.

If that's the case, you cannot set up for Direct Deposit of your income tax refund. Generally, you send the Trustee the entire tax refund check.

Then, depending on when you filed, the Trustee will pro rate the income tax refund, keep their portion, and refund the rest to you.

Example,.......... If you file in Sept, the Trustee would take 9/12th's of your refund and send you the remainder.

[SinkingFast]

I own a car that is well within the allowed exemption.

I also own a van that broke down. This one has a $2,000 title loan, but it now needs a new engine, and I would estimate that it is worth $1,000 or less as it is, although I eventually would like to fix it and keep it. What would I have to do with it, if anything? What would I do about the finance company who has the title?

I own another car that has been sitting for a couple years and is probably worth $2,000 or less. It needs some repairs. My younger son needs a car and I wanted to fix it and let him use it. Would I be able to keep a second car for this purpose? I suppose I could give it to him, but would that look suspicious? Besides that, he would then have to be on his own insurance policy which I think would be much higher than on mine.

Am I allowed to own any business equipment? I'm self employed and currently have just a couple computers and a professional camera. I would like to buy a new camera, but don't know if they separate business needs from personal, or if there is only so much equipment I can keep.

When is the "snapshot" of my financial situation taken? What happens if between that time and the filing day I would get a large unexpected payment? For example, I expect that I will eventually get a $10,000 commission for a project I've been working on for a long time (But it is not 100% certain. The deal could fall through). It might happen soon or it might not be for another six months. But if it happens just before I file, what do I do about it?

For the vehicles that need repairs, I'd document the repairs that need to be done and the cost for the repairs. Those $$ amounts can be deducted from the value established for the vehicles.

The title loan and the cost of a new engine might totally negate the value of the van. The repairs needed for the other vehicle may keep you below your vehicle exemption as well.

One problem you may incur is your State's wording of the Vehicle Exemption. Some States specifically state one vehicle per filer, or one vehicle per licensed driver in the family. You'd need to check on that.

Don't transfer the one car into your son's name at this point, if you plan on filing any time soon. The Court want's to know about any property transfers you've made in the 12 months prior to filing BK.

If you transfer the car, and then file, the Trustee could consider that a fraudulent transfer of an asset to hide property from the Court. Think about waving a red flag in front of a bull. The Trustee will start digging into your finances and affairs looking for other things and make your life miserable.

You will probably need to tell about the commission you might receive. You will be asked about any anticipated increases or decreases in income or expenses that might occur in the forseeable future. BUT, if this is a commission for work performed, won't you have corresponding job related expenses that will offset the income somewhat??

[razorguns]

always cash checks, paychecks, etc. at check cashihng places and get in cash.

Don't leave a paper trail, and for heavens - don't leave thousands sitting in your bank account. To be real safe - get a foreign bank account.

If the trustee always sees little in your account - you're okay. He can't see what's under your bed. And yes, even 1 year after closing - you could lose your bankruptcy and have it revoked and money taken away. So don't start saving or get a good job after bankruptcy. Bad mistake.

r

[SinkingFast]

always cash checks, paychecks, etc. at check cashihng places and get in cash.

Don't leave a paper trail, and for heavens - don't leave thousands sitting in your bank account. To be real safe - get a foreign bank account.

If the trustee always sees little in your account - you're okay. He can't see what's under your bed. And yes, even 1 year after closing - you could lose your bankruptcy and have it revoked and money taken away. So don't start saving or get a good job after bankruptcy. Bad mistake.

r

I respectfully disagree here Razor.

If anything, you want an established bank acct showing ebbs and flows. Money from pay coming in. Checks and/or Debits going out to the grocery, utilities, pay rent/mortgage and car payments, and such. It's an excellent paper trail for you to show the Court where your money does go.

The trick to filing BK is to file on a day when your bank balance is very low and can be covered by some sort of exemption.

If you get to file Ch 7, INH2, you only have to worry about the Court as far a windfalls up to 180 days after the date you filed. If you win the lottery, or inherit a family member's estate or life insurance, that type of thing.

In rare cases, the Court will revisit a BK up to a year, or more, after filing. But generally speaking, those are cases where some sort of fraudulent behavior was suspected in the beginning. OR, where there was an unresolved issue, such as a Law Suit, or injury/damage, or some other type settlement anticipated after the date of discharge. And, under New Law, a certain %'age will be audited as well.

[razorguns]

I respectfully disagree here Razor.

If anything, you want an established bank acct showing ebbs and flows. Money from pay coming in. Checks and/or Debits going out to the grocery, utilities, pay rent/mortgage and car payments, and such. It's an excellent paper trail for you to show the Court where your money does go.

The trick to filing BK is to file on a day when your bank balance is very low and can be covered by some sort of exemption.

If you get to file Ch 7, INH2, you only have to worry about the Court as far a windfalls up to 180 days after the date you filed. If you win the lottery, or inherit a family member's estate or life insurance, that type of thing.

In rare cases, the Court will revisit a BK up to a year, or more, after filing. But generally speaking, those are cases where some sort of fraudulent behavior was suspected in the beginning. OR, where there was an unresolved issue, such as a Law Suit, or injury/damage, or some other type settlement anticipated after the date of discharge. And, under New Law, a certain %'age will be audited as well.

i agree, but so do u on noting that you shouldn't have thousands stored in your bank account. There are plenty of lawyers that rich people use who can do a good job at 'hiding assets'. Usually in foreign interests or bonds.

I have like $800 to my name, so i don't really care. But for others, this may be important.

The sol on bk is 1 year - so if u get a good job, win the lottery, find a cheaper place, get married - they CAN revoke your bk, and throw it out. It's rare, but they do reserve that right. So 'discharged' or 'closed' really doesn't mean much. You still gotta live close to your means test for awhile.

I want to start a biz, but can't do so until a year passes, for example. Sad but true.

r

[SinkingFast]

http://uscode.law.cornell.edu/uscode...7----000-.html

The Trustee or a Creditor has to believe the Debtor did not file their BK in good faith or some fraudulent activity took place.


http://uscode.law.cornell.edu/uscode...1----000-.html

(5) Any interest in property that would have been property of the estate if such interest had been an interest of the debtor on the date of the filing of the petition, and that the debtor acquires or becomes entitled to acquire within 180 days after such date