CA ch7: personal paintings and cars question
Hey everyone, I can't think you guys for the help on my previous post. The information here certainly makes this process more bearable than originally expected.
We live in California and we are married.
I want to confirm the research I've learned here. My wife and I do not plan to keep any of our homes. So with that in mind it looks like through Plan II 703 exemptions we will have up to $41,450 to use as we like.
A. We have a Mercedes ML350 with a balance of $14000 and a value of $25,000 ($11,000 difference) and my '00 Mitsubishi shows a value of $6,700.
So it appears that we could use up $11,100 of that $41,450.
Calculated:
B. Next, my wife paints as a long time hobby and has done some really cool sports paintings where they take up to 3 weeks to complete. She has never sold any. We use pre-paid legal services for our preliminary questions and they refer us to the actual attorneys. In our preliminary telephone conversation we were told that because this is not a business or a known painter they probably would not hold much value anyways (all the better for us). Would these fall under the exempt personal items (so long as they're under $525)?
Is there any reason to be concerned about these? They have more sentimental value the monetary and we want to make sure that they can be protected. Or I'd assume they could always be included under the available $31,00 still available I take it. Any experienced opinions would be appreciated.
C. And if we hold onto rental income that is received prior to returning the properties to the lender in a ch7, those funds can be saved and claimed as exempt so long as it remains less than that $31,000 that remains correct?
D. And last... if we are part of a class action lawsuit for unreimbursed expenses for my wife's company. What are the chances these days that they're going to try and keep open a ch7 to try and collect should a settlement be reached in the future? I know there is no absolute answer, but if someone has an idea based on how busy they are these days it would be appreciated. Our telephone consultation rep told us that they have the option but may not because it's a class action lawsuit and there are no guarantees.
Thanks again everyone... the information here has been very encouraging and we've quickly made that transition to moving forward with a ch7.
thanks.
We live in California and we are married.
I want to confirm the research I've learned here. My wife and I do not plan to keep any of our homes. So with that in mind it looks like through Plan II 703 exemptions we will have up to $41,450 to use as we like.
A. We have a Mercedes ML350 with a balance of $14000 and a value of $25,000 ($11,000 difference) and my '00 Mitsubishi shows a value of $6,700.
So it appears that we could use up $11,100 of that $41,450.
Calculated:
25000 - 14000 = 11000 --> 11,000 - 3300 = 7,700
6700 - 3300 = 3,400
7,700 + 3,400 = 11,100 for the final amount used. Is that roughly the idea?
6700 - 3300 = 3,400
7,700 + 3,400 = 11,100 for the final amount used. Is that roughly the idea?
B. Next, my wife paints as a long time hobby and has done some really cool sports paintings where they take up to 3 weeks to complete. She has never sold any. We use pre-paid legal services for our preliminary questions and they refer us to the actual attorneys. In our preliminary telephone conversation we were told that because this is not a business or a known painter they probably would not hold much value anyways (all the better for us). Would these fall under the exempt personal items (so long as they're under $525)?
Is there any reason to be concerned about these? They have more sentimental value the monetary and we want to make sure that they can be protected. Or I'd assume they could always be included under the available $31,00 still available I take it. Any experienced opinions would be appreciated.
C. And if we hold onto rental income that is received prior to returning the properties to the lender in a ch7, those funds can be saved and claimed as exempt so long as it remains less than that $31,000 that remains correct?
D. And last... if we are part of a class action lawsuit for unreimbursed expenses for my wife's company. What are the chances these days that they're going to try and keep open a ch7 to try and collect should a settlement be reached in the future? I know there is no absolute answer, but if someone has an idea based on how busy they are these days it would be appreciated. Our telephone consultation rep told us that they have the option but may not because it's a class action lawsuit and there are no guarantees.
Thanks again everyone... the information here has been very encouraging and we've quickly made that transition to moving forward with a ch7.
thanks.