Please help me with my story

[LSUTiger32]

I called today to get the ball rolling, problem is they haven't called back. Judging by the way the poor girl answers the phone.....

LAW OFFICE PLEASE HOLD

.....I am kind of scared that they are understaffed or just that busy right now. I hope I am making the right decision on a lawyer. I feel comfortable because I have seen them help a family member of mine. I am just wondering if they are too busy right now.

[hereforinfo]

Yes, I think filing now would stop them from reporting to the credit bureaus.

[LSUTiger32]

We are thinking about getting started tomorrow and just seeing what happens with the one property we would like to keep other than our primary residence. I have some cards that are within 2 weeks of being 30 days late. If I file now, will this stop them from going 30 days past? I know it doesn't matter but I am just wondering.

[LSUTiger32]

you ahve a rental with $10,000 in equity? Are yo sure you want to give that up? You won't have to if you buy it back from the trustee, for less than the $10,000. It would make me a little nervous to sell a property right before filing, it seems like alot to do, with the actual sale, etc, plus it would seem a little fishy to me.

I'd love to keep it but I can't afford to. I can put together the $1,300 to file, and that's about it. Let me clear this up by saying that I would not actually keep it, I mean keep it through the BK so that I could sell it later. It would give me some time to do some easy repairs to it that would probably bring more at a sale.

[kw1025]

you ahve a rental with $10,000 in equity? Are yo sure you want to give that up? You won't have to if you buy it back from the trustee, for less than the $10,000. It would make me a little nervous to sell a property right before filing, it seems like alot to do, with the actual sale, etc, plus it would seem a little fishy to me.

[kw1025]

An earlier post said you have $300,000 in consumer debt. I don't see that here. Your investment properties are non-consumer debt, and if your credit cards have a business name attached to it, then that is also for sure non-consumer. I do not see from this, why should not qualify for a 7. Again, investments are business related, and are not consumer debts.

[LSUTiger32]

Yeah she said I am CH7 no doubt, but she also said that if I could dump the one property that has a little bit of equity in it before I file that as long as I spend the money on living expenses I am fine.

I was worried that the money would be counted as income. Surely if I sell an asset, even though I might only get $10,000......they are going to take it from me.

[kw1025]

An earlier post said you have $300,000 in consumer debt. I don't see that here. Your investment properties are non-consumer debt, and if your credit cards have a business name attached to it, then that is also for sure non-consumer. I do not see from this, why should not qualify for a 7. Again, investments are business related, and are not consumer debts.

[LSUTiger32]

Basically my lawyer has told me that I can do whatever I want as long as I can document what I spent the money on. Is that true?

[LSUTiger32]

Yes you can but be prepared to prove it was an arm's length transaction at full market value.

The reason I asked is that a family member is in on half of it with me and may want to keep it. The loan and the title though is all in my name only.

[OhioFiler]

So I can't sell it to a family member even if it is at a fair market price?

Yes you can but be prepared to prove it was an arm's length transaction at full market value.

[LSUTiger32]

You need to get a fair market price for the asset, and you can't sell it to a family member or other insider (a business partner, for example).

So I can't sell it to a family member even if it is at a fair market price?

[lrprn]

Does anyone know how it works with selling assets before filing. How much under the law can I make on the property and not get it taken from me? I know I can use the proceeds for living expenses, but is there a cap?

You need to get a fair market price for the asset, and you can't sell it to a family member or other insider (a business partner, for example).

Then you are going to have to figure out what to do with the money you get. If your state's bankruptcy exemptions can't protect the cash you receive, then you need to find a way to spend that money down before filing. This is an area where you need expert advice from an experienced bk lawyer who is familiar with your state's exemptions and what your local court and trustee will tolerate.

[LSUTiger32]

Well I took the weekend and we decided that we will take another week or two and see if we can dump the property that I have some equity in. I listed it in the paper as a best offer, contractor/landlord special so that along with the crazy low price I listed should get me some bites.

Does anyone know how it works with selling assets before filing. How much under the law can I make on the property and not get it taken from me? I know I can use the proceeds for living expenses, but is there a cap?

[LSUTiger32]

Awesome info KW thank you!!!