Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Close to filing but tax refund and filing lawsuit concerns

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Close to filing but tax refund and filing lawsuit concerns

    We (my wife and I) have been paying towards our lawyer's fee for 2.5 months now so that we can file Chapter 7. Our income is $6k below the income guidelines for a family our size so we don't expect to need a means test. We live in WV, have $5k in household assets, a 401(k), $23k in house equity, $2k in car equity, and are filing on $60k in unsecured credit card debt. We haven't used our credit cards in 3 months.

    We have $200 remaining towards our lawyer's fees and will file in the next couple of weeks. We now have a couple of concerns:

    1) We are expecting over $2,500 from federal and state taxes as a refund. I'd like to proceed with filing and using some of that money for emergency home modifications while putting the rest in a savings account. I feel like it would make things less complicated to go ahead and file and claim my savings account as an exempt asset. I just don't want the home modification seen as any type of fraud. It could increase the equity in our home I guess, but not 1:1.

    2) This is the bigger problem. I have recently signed a commitment with separate legal representation that has a slight chance of resulting in a pain and suffering settlement. No fees incurred unless we win. I know that the trustee will want to use any settlement money to pay my creditors, but I'm curious if any of this can be exempted? Up to a certain amount, for instance? It is my understanding that WV allows you to use remaining homestead exemption for any property ($50k filing jointly). Would the trustee allow us a certain amount as exempt if we do ever settle? ($20k remaining from $50k homestead exemption) Or even crazier, if the settlement ends up being larger than our debt altogether? If all creditors are paid in full, is any of the remainder returned to us? I couldn't imagine a scenario where a settlement pays all of our creditors in full and yet we have a bankruptcy mark for 7 years!

    Unfortunately, I imagine the legal process would take 6 months or more for investigations, etc. I hate that this may make our discharge linger, but I feel compelled to follow through with the case (it is personal). We really need to file soon, we haven't paid our revolving accounts for 3 months and the calls are flowing in. Our payment history before that was perfect.

  • #2
    It sounds like you can use that unused homestead to cover the tax refund. Since you use the word "emergency", I assume you are making repairs, not modifications. The repairs aren't likely to increase the value of your house more than the cost of the repairs. I don't think this will be an issue, but discuss it with your attorney.

    Your lawsuit will be an asset that can be exempted like any other asset. Make sure your attorney exempts it using as much exemption as you have available. You will get the settlement up to the exemption. If the balance is more than need to pay of your creditors, you will get what's left after paying the trustee fees. Your bankruptcy case will be kept open while the lawsuit progresses. In fact the trustee could take over the lawsuit. But, it will not delay your discharge.

    I don't think you have anything to worry about. Just make sure your attorney knows everything and applies maximum exemptions to the lawsuit.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

    Comment


    • #3
      Originally posted by LadyInTheRed View Post
      It sounds like you can use that unused homestead to cover the tax refund. Since you use the word "emergency", I assume you are making repairs, not modifications. The repairs aren't likely to increase the value of your house more than the cost of the repairs. I don't think this will be an issue, but discuss it with your attorney.

      Your lawsuit will be an asset that can be exempted like any other asset. Make sure your attorney exempts it using as much exemption as you have available. You will get the settlement up to the exemption. If the balance is more than need to pay of your creditors, you will get what's left after paying the trustee fees. Your bankruptcy case will be kept open while the lawsuit progresses. In fact the trustee could take over the lawsuit. But, it will not delay your discharge.

      I don't think you have anything to worry about. Just make sure your attorney knows everything and applies maximum exemptions to the lawsuit.
      Thank you so much for your thorough reply! This makes me feel a bit better.

      Comment

      Unconfigured Ad Widget

      Collapse
      Working...
      X