Consultation not what we expected

[justme73]

So we had our consultation with a lawyer this morning, things aren't what we thought I guess. We've spent alot of time trying to figure out if this is right for us, looked at the exemptions, etc. We were told that we would lose our vehicle probably (equity of about 8) and she thought that my husband would probably lose his job?? He works for a correctional facility here (state employee), that just didn't sound right to me? She suggested maybe I file separately so that we don't lose the car, but how does all of that work? My name is not on the car, but anything joint they'd come after him? I'm so upset, I really was hoping that this would offer some relief to us, we've taken our monthly bills down as far as we can and it's still too much...thanks for any help

[HHM]

I am skeptical on the "lose the job" claim. Especially as a state employee...once you HAVE the job, it is very difficult to get fired. Now, if he was "seeking" a job with the Dept. of Corrections, that may be a different story...but if he already has the job, unlikely the BK will result in him losing his job. State employees file BK all the time, firefighters, policeman, corrections officers, etc. I doubt it is an issue.

I would suggest getting a few more consults.

Also, no one actually "loses" a car in bankruptcy unless they want to. Depending on how much non-exempt equity there is, you will most likely opt to "redeem" (look up bankruptcy redemption) the vehicle. What that means is, you will pay the trustee some amount of money to keep the car. Now, if that amount is too high, and you are "desperate" to keep the car, you can opt for a chapter 13. However, even if you lose the car, you can buy a car the next day (although the financing may be a little steep).

[justme73]

We have 2 cars, owe on one 8k, KBB list it 16-18 and another that is 12 years old with 224k miles on it, nothing owed. we only have 12 more payments left, that is why we'd rather just keep it and be done rather than get another. she said exemptions are only for one veichle? both are in my husbands name, i think that was a sticky point.

she said that he prly would never be given a promotion or transfer with that on his record, but if he's a current employee, do they even know or find out? i wouldnt think so. he's been waiting for a position at the local pd to open, she said that he proly would be turned down as a police officer bc of it.

this consult was through someone contracted with my work eap program, i'm going to investigate finding another opinion i think

[frogger]

she said that he prly would never be given a promotion or transfer with that on his record, but if he's a current employee, do they even know or find out? i wouldnt think so. he's been waiting for a position at the local pd to open, she said that he proly would be turned down as a police officer bc of it.

You need to run just as hard as you can to get away from this attorney, for it appears that she's an idiot.

Find another attorney!

[ksgirl38]

I'm confused. I don't understand why your husband would lose his job at a correctional facility if he filed BK. Does he have any contact with money on the job? That would be the only reason I can think of. Otherwise how would they even know? I don't think that type of employer would run a random credit check and if they did what difference would it make. Just doesn't make sense to me.

[Pizza]

Filing bankruptcy should be more favorable to employers than having mountains of debt.

It is also illegal to fire an employee solely for filing bankruptcy.

[momofthree]

See another attorney. Not only is she way off base on the job issue, but she sounds like she doesn't know what she's talking about regarding the cars either.

[Drazil65]

Hi...Why would his employer find out? Would he have to fill out a new application (and possibly pull credit for that) for employment for the new position he is looking at? Not sure where this is coming from but please make a couple more appointments for consults, something does not sound right...

[justme73]

I don't understand on the employer thing either, we're going to contact another attorney for another consult and see what he has to say.

I emailed to her a followup whether it was doable for both vehicle titles to be in one name and both to be able to claim for exemption, she said 'We would have to determine how much equity you are over the $7000 per person limit. Unfortuntaely it's kind of a gray area in our district if both vehicles are titled just in one spouse's name. I don't believe our judge has decided the issue but the trustee always argues if you aren't on title you can't claim it as your exemption. So if both vehicles are just in his name and the one paid off vehicle is worth $4000 and the other has $10,000 of equity its possible the plan payments might have to be enough to pay back $7000 over the 3 years (about $200 a month). It's also possible, especially in chapter 13, to make an equitable interest claim for you on the one vehicle and be able to claim one per person. I've heard of that being done in other districts.'

what does that mean?

[justme73]

yes if he chose to apply for a transfer to a different job then he would have to fill out a new application...yes, we're going to consult with someone else on this, this was the first

[justme73]

are there any specific questions i should be asking when we speak to another lawyer?

[keepmine]

You may want to consider a little bk planning.
Sell the car with equity and use part of the proceeds to finance a ride in both names and use the balance for ordinary living expenses.

[hmsmith]

I would agree that you should seek a few more opinions of other attorneys. Tell them what she said and ask their advice.

As far as how would your employer know, I was concerned about this with my husbands job which has nothing to do with handling money. However with the amount of in depth pay stubs they needed and the explanations they needed for a bonus check among others, we had to tell them. For us, it went well, and didn't affect his job. Our attorney had to have 6 months of pay stubs and if we were missing ANY, we had to call payroll and get them. Also they had given my husband money to transfer, for the sale of our home (which we ended up losing thousands on) and we had to have supporting documentation on that as well. I admit our situation was unique, but I could see if you didn't have every single pay stub, how they could possibly find out. My attorney said the court will not hesitate to call your employer if verification is needed on anything.

[ksgirl38]

The best thing to do would to be schedule several consultations and ask each your questions about the car and your husband losing his job. When you start hearing the same answers from different attorneys you'll know this first one was not accurate in her information. Most good attorneys won't bad mouth another, but they will tell you if you were given inaccurate information. Just write down your questions ahead of time so you are prepared.

[justme73]

Spoke to a different attorney today, pretty much the same thing, we won't know if we're able to claim the vehicle until we get into it as it's a second vehicle and exemption is for one...house would be ok...as far as hubands position said he's seen times before where those that tried to move up were not able to do to filing BK...we're considering just myself filing now....