my parents will be filling bk - newbie questions

[phant0m]

While filling for bk, will they look after me or my brother to pay off the debts as we are both the debtor's sons? if yes then that doesnt make any sense for me. Also, since my belongings are located in my fathers house, that I assume will be collected to pay off the debt, will they also take my personal stuff (computer, tv) that I worked and paid with my own money? I could find receipts for most of the stuff.

Can someone confirm that life insurance is being exempted in NY state while filling a bankrupty? Since my mother is the main beneficiary, will they take all the insurance's money (assuming that we get them first) after she fills a bankruptcy? If we would change the main benefeciary to be me, will they look back into records that something was done with the policy?

One more question, is there any way that we could keep 2 cars for +$2400? Will they look back into records that cars title was transfered to son?
thank you.

[FilingOnMyOwn]

You need to stop worrying. Its not your bk. Its someone elses. Unless anything you have is secured out of your name in title like a car or what not, then just let it go.

[miss puff]

Hi Phantom and Welcome! They will not go after you for anything. Make sure they are not transfering cars to you before bankruptcy though because that could look like they are trying to hide assetts and the Trustee might try and take it. Anything you have stored there is safe as long as they list that it is just in their house, that you "own" it, not them. I did this with a grand piano that is at my house. It is my dads but his house won't accomodate it right now so I am storing it at my house. Trustee never said a thing about it.

As for the life insurance policy. I am assuming you mean to take your dad out as the benificiary and to make you the benificiary. There really is no need to do that. Unless your mother is gravely ill, your father can still be the main beneficiary. Usually it's within the first year that they would take any monies like that after a bankruptcy.

Good luck

[JusticeForAll]

Don't transfer the cars! They specifically look for that in BK.

NY State used to allow a $3000 exemption for cars, that may have changed in the last year, but check it out.

I think the life insurance is going to depend on what Chapter of the Bankruptcy code your parents file under.

[bkbiker]

Hey phant0m,

Sorry to hear about your parents having to file so late in there lives, they will need your love and support as they go through the process.

As said, your stuff is your stuff, not to worry,

Read more and help your parents do some pre-bankruptcy planning before they file; what chapter are they filing? 7, 13

Don’t transfer any assets that they own now, don’t close out any accounts, don’t write any large checks, plan and play everything above board and transparent for the trustee to see.

On the issuance issue, my answers would depend on more facts, how much debt is going to be filed? how much insurance coverage do they have? Basically in chapter 7 they will be required to notify the trustee and be prepared to relinquish any death benefits for 180 days after filing chapter 7, in chapter 13 it continues until your case is closed. Personally I would ask my parents to list both sons as beneficiary of their life insurance benefits, as this is money that will be needed to care for the surviving spouse and do this before they file. You and your brother I assume are both honest and would keep this money separated from your own and only use it for your surviving parent needs.


Take care,
bkbiker