In a Pickle

[AfraidOfBK]

Ok we were saving money on the mortgage while waiting for the house to foreclose (In NV, surrendering home) Now we are moving out of state in a few weeks and I don't know what to do. How do I handle the utilities? Homeowner's Insurance? HOA fees? Do i have to keep paying these while I am trying to afford to live in the future? I have not ifled CH 7 yet, but need to soon....Now that we are moving that throws off our whole plan for filing too! I AM SO LOST...I am not sure when to file (before moving or after) and the rules that go along with it...HELP!

I will be moving in less than a month (LIkely, I cannot file until after I move) but then do I have to wait 90 days? And if so, how can I have money in my account to secure a rental in our new state (Washington) if thousands of dollars are not exempt? I could always have family lend em the money to give a rental deposit, but then how would that look in bk? I wouldnt have to pay it back to family, so could it be considered a gift? THen would it throw off my income in the look-back?

I am sorry for the confusion but this whole moving thing has really changed our plans Thanks a million for any advice

[LuciluS]

[QUOTE=AfraidOfBK;298208]Ok we were saving money on the mortgage while waiting for the house to foreclose (In NV, surrendering home) Now we are moving out of state in a few weeks and I don't know what to do. How do I handle the utilities?I don't know what I would do. Maybe the electricity, but make sure a/c is turned off and set as high as you can to keep the bill down.Have a neighbor you could give a key to your home and he/she might could check out the interior of your home, say every month? Homeowner's Insurance? Yes, as someone could get hurt on your property, even if they were there illegally. HOA fees? Stop paying. You can include the monthly HOA fees up until Chapter 7 is discharged or is it closed?? I think it might be closed. Sometimes if the foreclosure is near the closure of your BK, you might be able to skip a month or two of HOA fees after your 7 is closed as the HOA will most likely put a lien on your property & the $ amount will go to whomever buys it or the bank. Do i have to keep paying these while I am trying to afford to live in the future? I have not ifled CH 7 yet, but need to soon....Now that we are moving that throws off our whole plan for filing too! I AM SO LOST...I am not sure when to file (before moving or after) and the rules that go along with it...HELP!

I will be moving in less than a month (LIkely, I cannot file until after I move) but then do I have to wait 90 days? I believe so. Google Michigan bankruptcy laws. And if so, how can I have money in my account to secure a rental in our new state (Washington) if thousands of dollars are not exempt?If you wait until after you moved, those $ will be gone & I wouldn't be suprised if some of the expenses might be included in your Means Tests. After you get moved, set up some free consultations. Make a list of questions to ask. I would also complete a WA Means tests and take the results with you to the free Consults. I could always have family lend em the money to give a rental deposit, but then how would that look in bk? I wouldnt have to pay it back to family, so could it be considered a gift? THen would it throw off my income in the look-back? I am sorry for the confusion but this whole moving thing has really changed our plans Thanks a million for any advice[/QUOTE

Try to keep any family members who are not your dependents out of your BK as your case could get complicated. I don't recall if you have stopped paying your CCs and when? We stopped late last Sept. except for one I paid through Dec. They are in the hands of Collection Agencies, now. Received a few form letters, but nothing stating a lawsuit will be filed. Our BK Attorney told us if a CC files a lawsuit, he could file a Delay until we get our Chapter 7 filed on 9/30/09.

Luci

[lrprn]

Ok we were saving money on the mortgage while waiting for the house to foreclose (In NV, surrendering home) Now we are moving out of state in a few weeks and I don't know what to do. How do I handle the utilities?

Contact each utility to give them a date to turn off each one before you leave. Ask what your current bill for each is at that point and pay it. Make sure to put a forwarding address in the post office. Pay the final utility bills in full when they are forwarded to your new address.

Homeowner's Insurance?

If the house will be vacant after you leave, then most lawyers will recommend that you keep paying the minimum level of property liability insurance until the bank takes ownership of the home. If an accident happens on your property before that happens, you'll be liable.

HOA fees?

This depends on your local city laws and bk court precedents. In some cases, you will have to pay the HOA fees after filing until the bank takes over the house (not saying it's fair, just preparing you.) Ask your lawyer what the practice is in your current location.

I am not sure when to file (before moving or after) and the rules that go along with it...HELP!

If you are working with a lawyer, he/she can help you sort this out.

If you are planning to file on your own, then you can file in your current state or file after living some period of time (usually 30-90 days - depends on the state) to establish residency in your new state. If you file Ch 7 after moving to your new state, then you'll have to use your old state's bankruptcy exemptions. This is the case until you live in the new state for two years.

And if so, how can I have money in my account to secure a rental in our new state (Washington) if thousands of dollars are not exempt?

As I said earlier, if you move to WA and then file, you must use your old state's exemptions when you file. How much cash will your old state protect?

I could always have family lend em the money to give a rental deposit, but then how would that look in bk? I wouldnt have to pay it back to family, so could it be considered a gift? THen would it throw off my income in the look-back?

When you say "lend em", who is your family lending to?

Your family can gift you with any amount they wish, or you can set it up as a loan and include the family member on your creditor matrix when you file. However, in either circumstance if you haven't filed yet, then that gift or loan money counts as income on the six-month lookback. If you are close to the median, then taking this cash from family would need to be done carefully or you need to delay your filing for six months for the additional income to drop off.

Sorry.....this is probably not what you were hoping to hear.

[Trixie007]

We moved to WA state last Fall from California and just (coincidentally) waited 6 months before filing. We ended up using the Federal exemptions, which are a bit more generous than those of WA state. We didn't have HOA fees - we kept the homeowners insurance, but when I eventually cancelled it the lender just placed forced order insurance (no content or liability protection). I turned off the utilities, some people think you shouldn't. A few of them tried to continue billing me, I just included them in my BK.