This one is for my nephew!!!!!

[mcordry]

I filed a chapter 7 about 18 months ago and it was the best decision I had ever made. And I made it through because of all you good people on this forum... So now I have come back to help my nephew , who is going through a bad time right now... Here is his story: His wife filed Chapter 7 about 5 years ago because of some bad financial choices she made behind my nephews back. Unfortunately it has happened again and this time it is much worse. She has gotten herself into about $100,00 in debt. He bought a truck about 18 months ago and used a loan from his 401-K to buy it, so he has been paying that back, she took the title and used it to borrow about $35,000 and she did the same thing with her suv. So he has about $70,000 owing on his truck.. so my first question would be can they do a lien strip on the vehicle on the bank that has the title? I have heard of this done on mortgages, but I don't know if they do it on vehicles...Do they take savings and tax returns to pay back the creditors? His son is going to college, and couldn't go this semester because they couldn't pay tuition, can he include tuition into the paperwork for his monthly income? His wife might lose her job because she works at a bank and some of these loans were through the bank, but that might just have to happen, so when they do figure disposable income if she is working now when they file, but loses it would they adjust the payment....My nephew and his wife make about $120,000 a year, and have 2 children,, they have a house and 2 cars. Their goal is to keep the house, and my understanding is they can pay for the house outside of the bankruptcy. Is this true? He is going to see the attorney that I used, who I trust completely. Can he pay his attorney through the bankruptcy plan? I think that is all I can think of right now,,,ya'll helped me so much with my bankruptcy, that I hope you can do the same for him,,, He is a great guy in a bad position... thanks again

[justbroke]

You can "value" a Chapter 13 claim to its current market value if it's not your primary home. So in a Chapter 13, a vehicle claim can be "bifurcated" if it was not used to purchase the vehicle (a/k/a a "purchase money loan") or it's a purchase money loan that was obtained more than 910 days before filing.

They are going to need a good attorney and they will need to deal with all these issues. Most Chapter 13s are paid through the plan (with about $1,500-$2,000 paid up front and the other $2,500-$3,500 in the plan). Paying outside the plan is allowed in most Districts if the debtor(s) is not behind in any payments.

There is so much to start with and the best for them is not to get information fourth party, but to obtain a free consult and learn about this. These cases are so "fact" specific and so subjective that it's hard to really answer the rest of the questions.

[mcordry]

thank you Justbroke, I totally understand that it is case specific...after going through my own chapter 7, I learned that very quickly, but when I was going through it I could get a general sense on this forum what I could expect... thank you very much for your reply