Nonpossessory,nonpurchase money security lean

[gak555]

I have been reading the Nolo Press book on bankruptcy and it mentions that a nonpossessory,nonpurchase money security lean is almost always created when a consumer obtains a personal loan from Beneficial Finance. What exactly would that mean as it relates to an automobile. I do not own property.

Also, I plan on moving to Maryland from Virginia soon where the median income amount allowed is considerably higher. I make about $4,000 more than the median income allowed in Maryland , but can cut my hours at work to get the number down below the median so I do not have to go through the means test. I understand that they only look at the full 6 months income prior to filing when deternining your median income. Is this correct ? And is it kosher or would it be considered fraud to reduce my work hours to get under the limit and then increase the work hours again after the discharge ?

[aa06a47]

I think it means a loan through Beneficial Finance is a "secured" type of loan vs. the standard unsecured credit card.

I don't think it is illegal to cut back on your hours, however, you may have an attorney look at your expenses / ect / and see if you have 100/month extra after expenses without going through this effort. If you don't, then you shouldn't have a problem getting a chapter 7. (rent/car payment/ect)

[keepmine]

As it relates to an auto loan, you must reaffirm and stay current if you wish to keep the car.

[cpw111]

You will have to live in Maryland for two years before you can file there I believe so dont plan on using there exemptions anytime soon.

[gak555]

I realize that I have to use the exemptions from the state of Virginia since I will not have lived in Maryland for two years, but I did not think the two year rule applied to the median income. Are you sure about this ?

[cpw111]

Sorry Gak I dont know what I was thinking. It only makes sense that you would you that states median income level. I edited my earlier post. Sorry for the confusion.

[SinkingFast]

New Law, you must file where you live.

But if you've lived there less than 2 years, you must use exemptions from the old state.

Once you move, you'll be able to use the New State's costs of living and Median Income for the Means test. Provided you file after you've lived in the new State at least 6 months, I think.

We recently moved and we got the, "When did you move? How long have you been here?" Questions a lot. Hubby came first and we followed later. He's been here a year and we've been here about 7 months now. When we were doing Consults, attnys were a bit sketchy that I'd only been here 6 months.

So maybe if you move and then immediately try to file, you might run into some problems. Dunno. You'll have to ask some attnys. See what they say.

That was part of the thing behind the New Law. To prevent people fleeing to debtor friendly states and then filing BK.

[gak555]

Thanks for the feedback. Is anyone sure about the 6 month waiting period before using a new state's median income numbers. I do not recall reading or hearing anything about that. Obviously important to know.

[SinkingFast]

It's not anything that is in writing. At least not that I'd found. It was just the way the attnys were all acting. The questions.

I wonder if it's all so new, in some ways, that some attnys don't wanna be the first one in the area to do something. Like file for a client who recently moved and they have to use different exemptions.

All the attnys were fine with Hubby having been here a year. They were "odd" about me being here 6 months. Then they'd say something to the effect of, "I guess that will be alright." Like I had control over when I moved?? Excuse me!! Hubby got the job and HAD to move. I came along with the kids when we could. For gosh sakes!

We had 4 attnys flat out refuse us once they found out about having to deal with outa state exemptions. A bunch more that I called simply quit BK practice when the law changed. They were finishing out their pre 10/17 filings and they were done.

Just want you prepared in case you run into the same things we have.

Hopefully you won't!!!

[cpw111]

I read where you have to live in the state you file for 90 days to use their median income. Sound right?