Couple of Q's

[LostinTX2]

1) I have 2 judgements against me. Will these go away when I file Ch7 or will I still be liable for them?

2) I started the BK process about 1.5 years ago. Changed my mind, believed business would pick up and we could turn things around. Businesses WERE improving, but took a downturn. Contacted lawyer in December, he said I had to have a 2007 return and couldn't file until 2008. My dad got sick (stroke, then cancer) and guess who had to drop everything and deal with it. He died and I had to deal with his affairs (no, I didn't inherit anything), then Grandmother died and we DID inherit but only $581. We waited because we thought we would inherit more (around $5K - but that $5K was to be split among 6 grandchildren) and wanted it spent before the BK. Anywho, during this time I fell into a DEEP depression. Just couldn't deal. Pulled myself out, and said enough is enough. Since the first meeting with lawyer and handing over $1950 and now, we incurred a bit more debt. The remaining business owed to a printer and to a door hanger advertising service. However, nothing was filed. We're going Pro-Se now as lawyer wants ANOTHER $1000 to do anything. Don't have that. Are we totally hosed about the new debt? Total is $13000. Considering we owe over $300K, this seems like a drop in the bucket.

3) We are 1/2 payment behind on our mortgage. We have a choice, pay the rest next week or have groceries. I don't want to go into BK behind on the mortgage. What are my options?

4) We are 2 payments behind on my van. We owe $10,500 but it's worth about $5,000. A dealer would give me $3,000 for a trade-in. I'd rather let it go, but won't be able to get another vehicle for awhile. How would you negotiate a reaffirmation? I wouldn't negotiate for more that $6,000.

5) I can't work right now. Daycare would be more than I could make so it doesn't sense for me to have a FT job. I do work 2 PT jobs and DH is looking for a FT job as we are closing his business.

6) Since it's been over 2 years since I touched any of the credit cards and incurred the majority of the debt and almost ALL of the original creditors have charged off the accounts and sold them to collection agencies, what are the chances of any of them coming to the creditor meeting and trying to pull the Fraud Card? I had several atty's tell me I need to file Ch13 even though we fell well within the means test (1.5 yrs ago). It was obvious these atty's wanted the Ch13 $$'s (it cost a lot more. They all mentioned the Fraud clause (703b??)

[AngelinaCatHub]

1) I have 2 judgements against me. Will these go away when I file Ch7 or will I still be liable for them? List them, it depends on what they are about, and if they file an AP (Adversary Procedure).
2) I started the BK process about 1.5 years ago. Changed my mind, believed business would pick up and we could turn things around. Businesses WERE improving, but took a downturn. Contacted lawyer in December, he said I had to have a 2007 return and couldn't file until 2008. He was wrong as you should have filed and waited, the automatic stay would have worked for you. My dad got sick (stroke, then cancer) and guess who had to drop everything and deal with it. He died and I had to deal with his affairs (no, I didn't inherit anything), then Grandmother died and we DID inherit but only $581. We waited because we thought we would inherit more (around $5K - but that $5K was to be split among 6 grandchildren) and wanted it spent before the BK. That is 'chicken feed and would not have hurt you. Anywho, during this time I fell into a DEEP depression. Just couldn't deal. Pulled myself out, and said enough is enough. Since the first meeting with lawyer and handing over $1950 and now, we incurred a bit more debt. The remaining business owed to a printer and to a door hanger advertising service. However, nothing was filed. We're going Pro-Se now as lawyer wants ANOTHER $1000 to do anything. Don't have that. Are we totally hosed about the new debt? Total is $13000. Considering we owe over $300K, this seems like a drop in the bucket. Yes, I cannot discern between your business debt and personal. I could be the same. You may need a business lawyer.
3) We are 1/2 payment behind on our mortgage. We have a choice, pay the rest next week or have groceries. I don't want to go into BK behind on the mortgage. What are my options? Attempt to learn Angelfoodministries.com. They are a real bargain and we now are under $100 a month for food.
4) We are 2 payments behind on my van. We owe $10,500 but it's worth about $5,000. A dealer would give me $3,000 for a trade-in. I'd rather let it go, but won't be able to get another vehicle for awhile. How would you negotiate a reaffirmation? I wouldn't negotiate for more that $6,000. There are many used car dealers. You should let it go. More bargains as our economy goes South.
5) I can't work right now. Daycare would be more than I could make so it doesn't sense for me to have a FT job. I do work 2 PT jobs and DH is looking for a FT job as we are closing his business. Be cool, you will work it out. The important thing is taking care of the child or children.
6) Since it's been over 2 years since I touched any of the credit cards and incurred the majority of the debt and almost ALL of the original creditors have charged off the accounts and sold them to collection agencies, what are the chances of any of them coming to the creditor meeting and trying to pull the Fraud Card? Very doubtful. I had several atty's tell me I need to file Ch13 even though we fell well within the means test (1.5 yrs ago). It was obvious these atty's wanted the Ch13 $$'s (it cost a lot more. They all mentioned the Fraud clause (703b??) If you are this wise, and they are that stupid, you certainly are on the right track, do you have the Nolo.com C7 book?

I will watch your case. No I'm not a lawyer, only a helper or advisor from my own experience. Always rely on a lawyer as they are official Court officials.

[fltoo]

Major congrats to you for pulling yourself out of a depression.

Don't worry about the judgments as your wages cannot be garnished in the state of TX. They will be vacated since you are filing BK. Just don't keep any money in a bank account. I have had a judgment sitting there for over a year now and just closed all my accounts and pay everything with money orders.

Do you have any equity in your house that could be exempted with the TX exemptions. (check to see what they are in the state of TX)

I don't see anything fraudulent in what you have said. You thought you could make it with the business, hired out marketing and the business failed. What is the lawyer saying is fraud?

File a chapter 7, the judgments will be gone, and you will be on your way.

Best of luck to you. You have gone through so much more important stuff already, your BK will be a breeze to handle.

[LostinTX2]

Thanks so much!

Texas has a homestead exemption, so if my house is current it can't be taken away unless I've lived there less than 2.5 years (I think). We've been here 13 years so I'm not worried about that....unless I'm behind. Because I pay bi-weekly, I'm not technically more than 31 days behind. But I don't want to risk the house over $320!

Thanks for the tip on Angel Food. We have food stamps and used them for that and am eating that tonight. I have a family of 5, 2 of which are teenage boys that are over 6 ft tall (13 and 14), are athletes and have HUGE appetites. They burn a lot of calories. This next months food stamps don't come in until Nov 8. Going to the food bank today to get some basics. (milk, bread, etc.) to get us through until Saturday. I thought is rolled over on the 1st and didn't budget my FS money last month properly.

Car I'm going to let go unless they can work something out. It will be a LONNNNNGGGG time before I can save enough cash for something else. But if If file before the 15th, the automatic stay hits and it will be at least a month before they take it then.

To clarify on the inhertence...we thought each grandchild would get $5K, but then found out that $5K was split. At least we didn't have it already spent like my SIL.

Since my posting I've done some more digging and it looks like sole proprietors can file Chap7 as an Individual and it all lumps together.

I'm going to go to NOLO.com and check out that book.

Next question: What's an Adversary Procedure? And if they do file one, what would be my next step?

Next question: In my list of creditors and on the mailing matrix, do I include the current debt holders (the CA's) or the original creditor or both? Do I include EVERY CA that has held the debt over the last 3 years? I want to make EVERYONE knows about this so that can't say they didn't and come after me after the BK.

Next question: Under the debt form, what's the diff between a contingent debt and a liquidated debt?

[LostinTX2]

And another question....

I pulled my most recent credit report and discovered we have CC's that are still active but have ZERO balance on them. Store cards mostly like Firestone and Kohl's. Not that we need them, but they would be great to use after the BK to reestablish credit. You know, buy a shirt and pay it off the next month. With 3 growing boys, clothes are always needed.

Do we need to list them?

[JRScott]

Next question: What's an Adversary Procedure? And if they do file one, what would be my next step?

Next question: In my list of creditors and on the mailing matrix, do I include the current debt holders (the CA's) or the original creditor or both? Do I include EVERY CA that has held the debt over the last 3 years? I want to make EVERYONE knows about this so that can't say they didn't and come after me after the BK.

Next question: Under the debt form, what's the diff between a contingent debt and a liquidated debt?

An AP is where they claim that due to fraud or other circumstances that you are not entitled to the discharge of that debt. In the time frame you state, most likely it will not come up and the burden of proof falls on them.

List all of them to be certain. If you have their addresses I would. My Lawyer did that for me, I've had no calls since the first week after filing, no mailers etc. It pretty much shut them all down.

Hmm....I"m not sure

[JRScott]

And another question....

I pulled my most recent credit report and discovered we have CC's that are still active but have ZERO balance on them. Store cards mostly like Firestone and Kohl's. Not that we need them, but they would be great to use after the BK to reestablish credit. You know, buy a shirt and pay it off the next month. With 3 growing boys, clothes are always needed.

Do we need to list them?

If the balance is 0 at the time of listing you do not have to list them, however be aware that generally when they pull your credit report they'll cancel the cards anyway, occasionally someone has one or two sneak by but that is really unusual.