I was wondering what might happen to my assets in lawsuits and BK. I am about $50,000 in debt total with about a half dozen CC's and will have to file BK sooner or later. I probably have to wait 2 years until I file to be safe. I was just wondering what may happen if I get sued before then. Here is what I have that are the only things of value I actually own.
Basically I have some undeveloped land worth less than $8000 because it recently failed a perc test and was disapproved by our health department for development. This value is based on the assessed value which is supposed to be the same as full market value in my state. I believe if the property was good it would be worth about $90,000 now. Lots like mine are mostly abandoned in my neighborhood since you can't build on them. This property only has value to me only because it is attached to the property my family lives on and is just an extension of that property and gives us some more breathing room.
My other asset is a car that is worth about $10,000 KBB retail and about $8,000 good condition private party. This is car has my name and one of my parents name on the title. Where it gets complicated is my other parent loaned me $9000 for this car when I bought it. I have only paid that parent back $4500 so I still owe $4500. That parent does not have their name on the title. We have nothing official on paper about this loan agreement other than cancelled checks. I'm curious if that by itself offers any legal protection in judgments or BK. Since I only own half the car and I owe about what that half is worth, I really have no equity in the car. I sort of doubt the law sees it that way but I am still curious what anyone thinks on this.
In my state I have a $6000 wild card exemption for judgments and BK. In addition, I have a $5000 property exemption that is only valid in BK. I figure that by the time I file for BK, I can exempt everything. What bothers me is if I get sued and get a judgment against me before I can BK, then I only have $6000 to work with. How likely is it I would lose either of these assets?
Thanks and this is a great resource btw. I think I have spent thousands of hours in here just reading posts.
Basically I have some undeveloped land worth less than $8000 because it recently failed a perc test and was disapproved by our health department for development. This value is based on the assessed value which is supposed to be the same as full market value in my state. I believe if the property was good it would be worth about $90,000 now. Lots like mine are mostly abandoned in my neighborhood since you can't build on them. This property only has value to me only because it is attached to the property my family lives on and is just an extension of that property and gives us some more breathing room.
My other asset is a car that is worth about $10,000 KBB retail and about $8,000 good condition private party. This is car has my name and one of my parents name on the title. Where it gets complicated is my other parent loaned me $9000 for this car when I bought it. I have only paid that parent back $4500 so I still owe $4500. That parent does not have their name on the title. We have nothing official on paper about this loan agreement other than cancelled checks. I'm curious if that by itself offers any legal protection in judgments or BK. Since I only own half the car and I owe about what that half is worth, I really have no equity in the car. I sort of doubt the law sees it that way but I am still curious what anyone thinks on this.
In my state I have a $6000 wild card exemption for judgments and BK. In addition, I have a $5000 property exemption that is only valid in BK. I figure that by the time I file for BK, I can exempt everything. What bothers me is if I get sued and get a judgment against me before I can BK, then I only have $6000 to work with. How likely is it I would lose either of these assets?
Thanks and this is a great resource btw. I think I have spent thousands of hours in here just reading posts.
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