C7 In Indiana

[justplaintired]

Hi, we are new and so glad to have stumbled across this site. We haven't filed yet, just sent over our stack of paperwork to the attorney. We are in Indiana and below the median by about $30,000, so we are filing C7. Nervous does not begin to describe how I feel lately.

Our debt is cc. $32,000 to be exact. We have 2 mortgages, first for $75,000, second for $23,000. We are hoping to reaffirm both mortgages. Our last appraisal put our value at $100,000, that was in 2003. We did do a room addition since this appraisal, how do we handle this? This was added on in 2006. To be honest, in the small town I live in, I am not sure I could even sell it it for that anymore. 2 factories are closing and jobs are scarce. Does anyone know how value will be determined? What happens if it's less then the amount we owe. We have always been current on both payments, as we were on cards until the attorney said don't pay the cards anymore. We want to keep the house, we have 2 kids at home and it's important we stay here. Indiana allows for $15,000 in equity, is that for one person or 2?

Also, we have 3 cars, 93 truck, 280000 miles, 95 jeep wrangler, 156000 miles and a 99 kia sportage, 101000 miles, can we keep those, does anymore know? I have checked kelly blue book and all fall under $10,000 total value, actually the kia needs work, broken windshield, muffler is falling off, and the heat shield thing under the gas tank needs repaired, so i am unsure how to value this one.

Since we quit paying cards, we have extra money, mostly because i am scared to buy anything. our cabinets are getting bare. what happens if they decide we have too much money left over? on our taxes for 2007 we made $37,894 for a family of 4 is it possible that we might be pushed into 13? The attorney doesn't forsee any problems. I just worry all the time. we haven't told anyone what we are doing. I am just thankful to have found this site. It feels so much better to know others are where we are. We tried for years robbing peter to pay paul, and it got us nowhere. i wish for this amount of debt we had something to show for it other then sleepless nights. I know that for us, after this is done, there won't be another cc. never. thanks again, I actually have been sleeping better since I found this site last week!

[Dirk Squarejaw]

Indiana's homestead exemption is $15k. As far as your cars, it all depends. Indiana doesn't have a vehicle exemption like some other states. You have to use part of your $8k wildcard but that also has to cover your other personal property in your house (electronics, furniture, appliances, etc.).

Many websites still show the old figures of $7500/Single and $15k/married for homestead exemptions and $4k for the wildcard (now $8k), though so don't get confused when you see various figures.

[tallberry]

I live in FL now but I am using IN exemptions because we moved here just 8 months ago. The IN exemptions are very generous, just as Dirk commented. One other thing to add to the mix is cash on hand (intangible) is $300 per person. So if you are filing with your spouse you can cover $600 worth of cash in your checking/saving account. Be sure to drain it down as much as possible before you file (I know, I know...that isn't hard to do). Good Luck and hope the weather isn't too bad in IN! I don't miss that!

[Teddy]

I am in IN also and my attorney seems to think I'm fine for C7 - I am also under the median - from what I'm seeing in my case vs your case, I would say C7 should work for you.

I have not filed yet but I don't think they are going to determine you have too much money with that income on a family of 4. That's close to my income and I'm using a family of 3.

I called the realtor who sold me my house 2 years ago and asked her to give me a market value so I know what my house is worth - I have a feeling it's not going to be much more than I paid with the market the way it is.

[justplaintired]

So, That is $16000 for a couple for the wild card? We honestly don't have alot, our attorney had us walk threw the house and put a garage sale price with all of our things, which we did. We go to alot of garage sale, so this part was easy, anyway by our figures we came up with abou $3000 in personal property.

We have no savings, $16,000 401K, both of us have 1099 jobs, small amount of inventory, dh, mowing job, $3000 yrly before expenses, he holds a full time job, $29000 last year. I have a small decorating job, $6800 last year before expenses, and work part time in a small store, W-2 employee, $1400 last year.

Basically we ended up with all this debt due to hubbies full time job cut hours over a 2 year period, no o/t, raised insurance cost. My decorating job has gotten slower, thanks to our economy slowing and gas and grocery cost we just couldn't make it. I started working another job last year thinking this would help, it was going alright, until GM card jumped our rate from 14 to 31.25 percent for being 2 days late in a 1 yr period, this after being a good customer for 7 years, all the begging and pleading didn't matter they refused to lower the rate. Frankly this meant our cc payments ate up every bit of our income with nothing left for groceries or anything.

We never thought we would end up in this situation. Sad thing is our credit was good, hubby score was 754, mine was 680. What that score got us was in major debt that we will never get out of without filing.

Now we are just praying all this will work out and we can live without the worry of losing everything.

[keepmine]

To answer your question about how real estate is valued-depends on your local custom. Your trustee may {or may not} require a formal appraisal. Or, they may accept neighborhood comps. This is a question your lawyer will help you with.
Congratulatiuons on not touchimg that 401K. It's exempt from creditor seizure. You'll comme out of bk with a positive net worth.

[Teddy]

I had that happen with a MBNA card with a 10k balance - I was never late and I can't remember what they raised the rate to but it was high vs my old rate - I begged & pleaded too to no avail. They made me mad b/c they kept raising my limit and I'd keep using it then whamo, raise my interest.

I did put that one on a debt management plan and am currently paying 193/month on it which is a lot for one cc. They dropped the interest down to 6% though on the DM plan.

[justplaintired]

I just can't thank this forum for what comfort you have given me. I quess i never really thought about it, but we do have our 401K, they can't take that!!

Wow, so even with no equity left in this house, which we have 12 yrs left on 2nd mortgage, which was borrowed in order to pay down blood sucking cc, we still have a little bit of net worth!!! Wow, that makes my day!! I just love this forum, first thing in the morning i look on here, last thing at night and any extra time in between i am looking thru post finding a wealth of info.

We really lived a very simple life before cc, and actually were much happier, worried less and can't wait to get there again!!

[Teddy]

I was really glad to have found this forum too, it's been a great help & piece of mind.

I have my 401k too, plus a work-funded retirement account. Other than that, I pretty much have nothing!