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Some pre bankruptcy planning questions

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    Some pre bankruptcy planning questions

    My husband is going to file for bankruptcy due to overwhelming bills from a long term illness. We want to do it right to protect me as much as possible. He gets $1500 a month from retirement and nothing else. I net $3200 from my job. But we cannot pay living expenses and all the old debts he has, so he is filing.

    First, most of his credit cards are in his name only. We are not a community property state. But there are two cards where I am an authorized user (not joint). I have been told to get the credit card companies to remove me as an authorized user from these two accounts before he files. Is this correct? And, I am told that this should not affect my credit at all. Is this correct?

    He has one small credit card where we are joint holders. I assume I will end up paying on that after he is discharged? If so, it is not a big deal. But, again, this should not affect my credit, correct? It is current and I can keep it current.

    We have three cars and need all three. The first is in my name only. I assume that is not involved in his bankruptcy. The second one is paid for and is in both our names. The third one is financed and in both our names. How tough is it going to be to hang onto these? One is a 1998 model and one is a high mileage 2000 mileage car. This last one, after we paid off the lien, would have little equity.

    And, the last car was given to my son, but he was a teenager and we put the title in our name. But it was a gift to him. Is there any way to transfer it to him either before the bankruptcy or to get the trustee to do it if we can prove it was a gift to him? I am aware of transferring assets right before filing and will only do something if it is aboveboard. I am asking if there is a legitimate way to do it.

    I did a lot of reading today on the issues involved and some of it indicates that my income will somehow figure into whether or not he can do a ch 7 or not. How does that work? My income can pay most of the bills, but we do need his retirement check to get by. And my debts are manageable, but I need my income to pay them down. Can someone explain this to me?

    Thanks for any help. Sorry my first post is so long.

    #2
    Need some more info from you...

    State you are in.......
    Family Size.....
    Property you own.... home?, 3 autos?... etc
    Minny

    "It's amazing the paths that our feet sometimes follow in life".

    My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

    Comment


      #3
      We need the info Minny asked for to look up your Exemptions. Then we can better assist you with your questions about things.

      The car,............ Don't transfer the Title to your Son if you're planning on filing soon. That will be a huge Red Flag to the Trustee.

      The look back period on property transfers is 1 year minimum. Same for deals with Insiders. Insiders are relatives, friends, close business associates.

      Transferring the car to your Son will look suspect. Like you are trying to dispose of property the Trustee could potentially seize and sell on behalf of your Creditors.
      Filed Ch 7 - 09/06
      Discharged - 12/2006
      Officially Declared No Asset - 03/2007
      Closed - 04/2007

      I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

      Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

      Comment

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