New to the board and have questions�

[BKinCA]

[lrprn]

Yes. There's information about filing bankruptcy in California at http://www.californiabankruptcy.info/ and http://www.bankruptcyinformation.com/CA.htm Looks like the answer to this question is that your husband is probably not liable for the debts you accumulated before you married but that you are both liable for the debts accumulated after marriage - see http://bankruptcy-law.freeadvice.com...bankruptcy.htm

We have 2 cars that are paid off, a 1996 Mustang and a 2003 Xterra (paid 13,000), we recently changed the title on the Xterra to only have his name since the money came from his father. We are planning on disclosing this upfront but what are the chances that we may be able to keep this car?

California allows two different systems of exemptions - 1 and 2. see http://www.californiabankruptcy.info/exemptions.html . How much car equity you are allowed to use depends on which system you choose. One issue I see here is that since you've just changed the title out of both your names into just your husband's name and you are filing without your husband, that is a strong suspicion of potential fraud, even if you didn't intend to defraud. Your lawyer will have to advise on this one. Any person you owe money to (especially family or close friends) that is paid money by you in excess of $600 within six months of filing is suspect. If you give any members of your family more than $600 total in that time frame, the trustee can ask for that payment to be returned due to you favoring one creditor over another. Again, your lawyer needs to advise you about what your options are here. Why are you paying your credit cards if you intend to file bankruptcy soon? Quit paying them and use that money to pay your legal fees and bring any overdue secured payments and utilities up to date if they are in arrears. Also, if you have been shuffling money around on your credit cards recently (and it sounds like you have), again this gives the impression to the trustee that you may be trying to defraud by taking on 'new debt'. You need to stop doing this before filing for at least 90 days, longer if you can manage it. Not likely you will be able to keep any of your settlement if the settlement comes through during your bankruptcy before discharge or within 180 days after discharge. The trustee can take it all for your creditors. Remember the trustee is not there to help you, he/she is there to ensure your creditors get as much payback as possible. If you know about the settlement, then you are right - you definitely must list it among your assets when you file. From posts here from others, typical lawyer fees run from $1000-2500 depending on the complexity of your case. Looking at several CA bk lawyer sites, looks like fees in your state tend to be more on the high side of that. In addition, the filing fee for Ch 7 is $209; for Ch 13 it's $194. Also there will be a $35-50 charge for your mandatory pre-bankruptcy counseling course from an approved agency.

If you are still there thanks for reading and I appreciate any input you may have on any of the questions

Rose

You're welcome, Ruth - my answers are in red inside your original questions above. I don't live in California and I'm not a lawyer, so someone here on the boards who does live in CA may have more specific information for you. Best of luck and please keep us posted on what you decide to do, ok?

[anonymuse]

Your lawyer would get his/her contingency fee out of that probably before you even see a check. Then, if your health insurance policy makes you payback the medical bills via subrogation. Then the money is for you. You'll need to read up on the CA exemptions to see whether or not PI cases are exempt and whether it applies to money received pre or post BK.

[BKinCA]

Thank you for your replies… we crunched the numbers last night and we are over the household medium… since my husband was still in the military for 6 months this year (reserve) and his GI Bill was a little too high, plus he got a raise last year but they paid him retroactively 3 months ago, we went over by $4,000. On paper it looks like we make allot of with him going to school full time and me paying $1000.00 in mininum credit card payments we are only a paycheck away from not being able to make it. We are still going to talk to a lawyer and see what they say.

It doesn’t look like this is a good time to file and it may not be in the future since he will graduate college in the winter and I will likely get a promotion but we are still looking into maybe debt management.

Again thank you for your replies

Rose

[BKinCA]

Ps. thank you for the links.

[anonymuse]

Just because you are over the median income does not mean that you are automatically ineligible for a Chapter 7. You need to complete the whole means test to determine if you have disposable income left over after your expenses are deducted. Do you have kids? Expenses really tend to go up with them!

[BKinCA]

We do not have kids, our biggest expense is my husband education and my cc payments, I will do the expense calculator and see where we stand.

Another question came to mind… If we talk to a BK attorney now to consult, will that be documented and will it bite us in the a$$ later if we decide to wait to file.

Also since we apparently have some issues that may raise red flags and be considered fraud, how long should we consider waiting to seriously consider filing?

I’m able to make the minimum payments right now but it will take me 30 years to finish paying off, which is the reason why we are considering BK

Rose

[jane taylor]

Good point about kids and boy, do I know that, with two teenagers!!

Rose, you asked some very good questions and the answers you received were great. Remember that the trustee is trying to get everything for the creditors. I know it is hard to not pay bills--I had the hardest time with this, but if you do decide to file, you will need that money for legal fees. Talk with a couple of attorneys--call the California Bar and ask for referrals.

I wish you and your husband every success in your careers and in becoming debt free, whether or not you decide to file or not. Look under the "Lifestyle Adjustments to Prevent Future BK" forum for everyday tips that lawyers, financial "gurus", etc. don't mention, but are practical tips from ordinary folks. There is a wealth of knowledge and support on this forum. Keep us posted on how you are doing.

All the best,
jane

[krobin02]

Correction: Ch. 7 filing fee is up to $299 as of April 2006.

[Minnymouth]

BKinCa,

Consultations with attorney is free and no it will not come back and bite you in the A$$....... But it sure will give you a good idea of what your options are and what you can do........... or not do......

Consultations are considered confidential.... and an attorney can be sued for discussing your case with someone without your permission.

When I went for my first consultation, I never even gave my real name......just seeking information.....

If you have issues that might be considered fraud, such a large cash advances, transfer of assets or properties, then you will need to wait at least 1 year before filing, (especially transfers)..... or be able to explain in detail "why"...........

If you file maybe only one of you needs to file..... only an attorney can tell for sure.....

Regarding the lawsuit, some personal injury suits are not bothered in bankruptcy..... just depending on what it is......

Hope this helps......

[aa06a47]

BKinCA....what you have is an opportunity to wait awhile if you choose to. You have some things that only time will heal, the transfer of the vehical to your husbands name is one of them...that will look like your trying to hide assets, and paying "insiders" or family members back.

If I were you, I would continue making min payments until a time when you can be sure the transfer of the vehical will no longer matter and the payments to insiders have disappeared. (Payments to insiders are generally a year).

I think you'll find most of them debt management companies might get you a better interest rates, but you'll really end up paying more because what they save you in interest, they charge back and then some in "fees". If you can find one that doesn't do that, please share with the board.

[aa06a47]

Actually Mini, the attorney/client privalege doesn't kick in until you write that person a check. I remember signing that I acknowledged that when I went on my free consultations. (With that said, an attorney who blabbed about things wouldn't have many customers)

What could come and potentially bite you in the ass is if you charged alot of things on credit after talking with your attorney. Creditors/Trustee's can ask when you contacted an attorney concerning bankruptcy. That can establish a date for when you were considering bk and provide them the ability to file an adversarial...with a good chance of winning.

So, get your spending out of the way before talking to a lawyer!!!

[anonymuse]

Actually Mini, the attorney/client privalege doesn't kick in until you write that person a check. I remember signing that I acknowledged that when I went on my free consultations. (With that said, an attorney who blabbed about things wouldn't have many customers)

I was told by my attorney that if the trustee in his office was chosen as my trustee on my case and I didn't even decide to go with their law offices, that trustee would have to decline due to conflict of interest and confidentiality laws.

[BKinCA]

Thanks, we are definitely talking to an attorney this week and take it from there. Thank you everyone for your replies.

Rose

[BKinCA]

Ps. I'm not planning on using my real name for the free consultations, also I haven't used 2 of my credit cards for over a year and one of them I did use but it was to get contacts that cost $1425.00 (I have an eye disease and require medical nessesary contacts). I have however done balance tranfers the most recent 2 months ago, not cash advances, I was really trying to find a way to pay my debt down.