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House, car, tax exemption questions -ch7

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    House, car, tax exemption questions -ch7

    I live in WA state. Filing chapter 7 with my soon-to-be-exh I have exemption questions:

    1st question: We have a $40K homestead exemption and a 2 car $5000 exemption. We have a house with $280K loan + selling costs could bring it to anything ove $305K is proceeds. We can *possiably* can sell it quick for $345K. After the sell, we *may* have $40K or less. I can no longer make the payments, so at the time of the sell, we will be past due. Do we get to keep that $40K cash due to the homestead exemption? Will they subtract the past due payments from the $40K? Is this a mute point, since if I BK the house, I walk away and I don't need to bother with a realitor. If I go down, I want to try to go down with some dignity and sell it (or let the neighbors think I'm selling it by choice). I think at $345K we can sell it in a month or two (WA market)

    2nd question: Since I am now going to BK my house, can I keep my tax returns and car money? They want all my tax return money $4400 and they want all the rebate check $2100. Plus, they want $1500 per car (2 cars with that much equity). And my attny wants 3 hour retainer for more time on my case after the 341 hearing. At least I get to keep my mothers pearls (she died 5 years ago and it's the only thing I have left of her... she loved me and she wanted *me* to have the most valuable thing she had! I'm so glad I didn't loose them!... I believe tho, this fell under the personal exemptions)

    My soon-to-be-exh is falling apart. He's just caving and I'm trying to make the best decisions possiable for both of us... so LOTS of pressure! He's ready to just give up his car, cuz he has no money. He said he will not pay the bk attny any more money and he is no longer paying on the 2nd mortgage!, yet saying he's doing the best he can. I'm a horriable care-taker of him, so I am resistanting trying to figure out a way to have him keep his car, and I think BK'g the house could resolve having to pay for the car, with money neither of us have. Do you think I'm correct in my thinking here, or is there no way around paying $1500 for each car. I know if he gives up his car, I won't have to pay for the $1500 for my car, but I would just feel horiable (he's still my kids dad, for petes sake).

    Should I pay my bk attny the 3 hours, or do it myself?

    I am not sleeping any more... I had 3 hours last night! So I'm tired and can't think well yet I need to find out the right path. I can't get to the best outcome if I don't take a few steps to get there, so any help is MUCH appreciated!!!! Thinking of getting on anti depresents.

    Jennifer

    #2
    I am really confused. Do you have a second mortgage on the house? I certainly would not pay anything on a mortgage if I was going to walk away from it.

    Have you retained an attorney? You said you paid some amount for an attorney and then said something about doing it yourself?

    Have you lived in Washington for the last two years? (for exemptions). For the car, if you do not have the exemptions to cover the "equity" in the cars you may be able to buy them back from the trustee at a agreed upon price over a set time.

    As far as the "Dignity" thing and the house. Remember that BK is a financial tool and it is wise and in many peoples best interest to us this tool available. (Just ask the airlines ) There are so many people here that will help you. You may find this board a comfort when you cannot sleep. I did.
    Filed!!04/23/2008[X] 341 5/27/2008[X]Converted to asset case 5/26/2008 [X]
    DISCHARGE 08/12/2008[X]
    Converted to NO Asset case 12/15/2008[X]
    Closed 12/16/2008 [X]:yahoo::yahoo::yahoo:

    Comment


      #3
      I don't feel like BK or pay off debt, etc, is a dignity issue. It's just, do I want everything to be "lost" with my head high or head low? Like, I may not sleep, I may be on meds, but others can see, on the outside, how I'm handling things. I know I am ok with how I handle things, as long as I am doing the proper research and taking the steps I intend to take. I just want to be as proactive as I can, yet let go at the same time.

      I have a first and a second mortgage. I have an attny, but he wants 3 more hours for a retaining fee at $225 per hour. I've paid him about $2100 or $1400 (can't remember) for everything through the 341 meeting, which was completed on 4/29.

      Comment


        #4
        Confused about your situation a little bit. So you have filed and are letting the house go? If so what it sells for really isn't an issue. Are you filing on the house?

        You want to keep the cars? And now your attorney wants more money? For what? What exactly is he doing above and beyond handling your case? Is there more paper work involved? Did you have some sort of problem he didn't know about until after you filed?

        You are allowed certain exemptions. Are the cars under that exemptions value? In other words, in Indiana where I am, we are allowed a wildcard exemption, which for myself and DH comes to $16K, we are allowed $600 cash and $30K in home equity. Do you know your exemptions for your area? You really should know those, your attorney should have explained all this to you especially if you have filed already. You should have been informed before it ever got this far how much you can exempt and what you can possibly lose.

        If you are filing BK on the house, don't worry about it anymore. You can not get any of the profit from the sale.
        Filed Chapter 7 June 4 ~ 341 July 20 ~Last day of objections Sept 18~Discharged/Closed Sept 21

        Comment


          #5
          I thought we were a mental mess. This fine lady is helping her soon to be ex, as well as attempting to face this mess herself. I honor you ma’am.

          To make you feel better, we are next to vegetable brains at this time too. We on paper seven years ago were multi millionaires. We own/ed 22 acres on the St. Johns River, and 302 acres of fine potato farm land. We had my retirement in the bank of almost a quarter million.

          We are not money people and to protect the land in perpetuity we gifted it to the State as a park and nature preserve with a restriction upon use forever. They did a wonderful job. We have a life estate on the river property and it will be made an extension of the Park when we pass, so we got pennies on the dollar for the property as a token payment and put it into an Irrevocable Charitable Trust.

          Then “bad blood” happened between myself and a millionaire crack pot Atheistic b@st#r&d. He has been suing me and harassing us for eight years. Losing my wife’s job and medical I got cancer and we went bust.

          Now in Chapter 7, he has an adversarial protest against my bankruptcy on a stale suit of five years where no action was taken for two. He wants to try it in Federal Court in the BK and has vowed to criminalize me. On top of that, my bk lawyer told me when we first started the bk “Chapter 13” intended at the time, that we sold a Mortgage Deed for half it’s value. Her comment then since it was a 13 was, you don’t have it, you don’t have the money, ergo, no asset and in 13 you get to keep your stuff, we did not list it. Well it didn’t get recorded for two months one month before we filed the only papers and that turned into a 7 since my wife’s second job and my little computer consulting with the same place got killed due to his harassment of us at that place. So he picked up on that transfer, my lawyer admitted her mistake, and also attempted to blame me but we are on a “civil” basis as I need her to admit the mistake. So, now my Trustee has hired an attorney to investigate this item. We are freaking on it, so young lady, you are not the only one in a mental mess. BUT, you must hang in there and remember, honesty will prevail, and time will heal. This forum is the best therapy we have found as we see we are not unique. OR NUTS for that matter…..yet.
          If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

          Comment


            #6
            P.S. KEEP ANY AND ALL RECIEPTS FOR ANYTHING NO MATTER WHAT. It is pure pain to look back and look up records you don't have. We have spent much gas going here and there for copies of checks and proof of this and that.

            You probably won't need them if you have a lawyer or this forum and take heed as to what to do. We had no such resource and we are suffering and now we know the truth after the damage.
            If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

            Comment

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