New with a question about an Asset I Own

[Greenjeans]

Can I 'buy' my own property?

[newimges]

I understand how you feel about it. I am not sure how long to wait. You can contact an attorney for a free consultation and bring this matter up with him/her and see what they recommend.

If the cabin is that important to you I would definitely consult with an attorney before you do anything.

Good luck!

[newimges]

Yes, I believe you can "buy" your property that is not exempt.

[BassBoy]

What? How do you suppose to do that? Let's stop for a minute. If you want to keep this property, which it's obvious you do, you may want to consult with a few attorneys in your area. Consultations are usually free. A good BK attorney will be able to inform you of what your options are and what you can and can not do.

[Greenjeans]

I think I found the top BK Attorney in my area today....I'll make an appt....

Would they make me sell it in a Chapter 13?

[Greenjeans]

Appreciate the knowledge.....thanks

[kiddles]

If you are the only one filing BK, your interest in the property is only $15K. You may only have to protect $15K.

[Greenjeans]

How could just one of us file? Thats interesting.....most the debt is in his name, with me as a co-signer....are you suggesting we could cut our debt in half?

[HHM]

We are all basically speculating here...without more background on your current situation...i.e. why the need to file BK, what is your income, what sort of debts do you have, etc...it's hard to say what "exactly" will become of the property if you file BK.

Generally...when it comes to valuable assets, unless there is an exemption that covers the reasonable value of that asset, then that asset will become part of the BK estate and sold by the trustee to satisfy, at least in part, the debts you owe.

Trying to transfer a valuable asset in anticipation of BK is usually a type of BK fraud, and is the riskiest thing you can do. At the very least, if you do "sell" the property, you have to receive market value for the asset...but now you have "cash" sitting around and you would still have to wait to file BK.

A chapter 13 can allow you to keep the property, but if you have non-exempt assets, like this parcel of land, your chapter 13 plan must at least pay as much into the plan as the value of the non-exempt assets. Thus, over the course of a 60 month chapter 13 plan and assuming the property is actually worth $30K, your chapter 13 must pay at least $30,000.

[Greenjeans]

I won't try to hide this asset...I wondered if I could work around it, but I'm all on the up and up.

Our combined wages used to be about $130,000 a year. Now it's just my husband at $80,000 a year. I was self employed and got hit hard by some tax issues after I sold another property (rental). I paid the taxes with credit cards to the tune of about $25,000. A trip to Hawaii was about $7K (kids graduation present), property damage my teen driver did cost $7K and the rest is normal charges. My total CREDIT CARD debt is over 50K. I own two trucks that we owe another $40K on. My home is valued at $325K and the cabin is valued at $30K. I also have a hot tub that I owe 5K on.

Last spring we were hurting so bad that we were late on a couple of the cards, and they all jumped on the band wagon and hit us with that lovely 30% interest. The minimum payments we can barely make now and it all going to interest. We are screwed.

I tried to take out some equity yesterday from my home, but because I'm not working, they said no. First time ever. I'm starting school to be a Medical Transcriber, but earnings for me are a year off now.

I'm supposed to be at a point in life where all our hard work has paid off, instead we are 6 months from doom....I have enough in savings to make my mortgage payment until then. Christmas is a dream! We'll be handing out coal this year ;)

[HHM]

Here is the state median income for Alaska. If your husband earns $80K+ a year and unless you have more than 5 people in your household, you are above the median income.

STATE, 1 EARNER, 2 PEOPLE, 3 PEOPLE, 4 PEOPLE *

Alaska: $43,766, $66,125, $70,378, $71,781

Being over the median income and "wanting" too keep the cabin property, you don't really have much choice but to file a Chapter 13...unless there is some exemption in Alaska to cover the land.

In any event, go meet with a few BK lawyers.

[Greenjeans]

Guess it will come down to selling my home to get the equity to pay this off.

I will talk to an attorney...making an appt now....

Thanks for your time this morning....

[Greenjeans]

Made the call. They did an intake questionair over the phone. Said Chapter 13 is my best plan. Gave me info for the credit counseling.

They will also take my Permanant Fund Dividend each year I'm in bankruptcy. Better than losing the cabin.

Guess I'll move over to the chap 13 forum.......

[newimges]

Good luck to you!

[oldbaddebts]

Crazy thought, but wouldn't the OP be able to sell the cabin voluntarily before filing, then use 100% of the funds to proportionatley pay the debts they have without raising any questions. In a small town environment like this, she may be able to find someone willing to buy it, and sell it back at say 35-40k two years after discharge. That way during the bk there would be documentation to show that the selling of the cabin was for the purpose of paying creditors, and would be unlikely to be undone.

Anyone know if that might work for the OP?