NEWBIE:should i or not file???

[oskieman889]

my question is if i do file what chapter???
i dont want to lose my house,first of all.
im late on my mortgage by months,cc months,etc....

im in debt of 40,000 in credit cards.
im getting sued by one of the creditors already...
my other question also is i have 2 parcells worth nothing and hate get rid of them...i know the creditor can put a lein????
and also if i do file which chapter????
in a big mess cant handle all the stress from this.


need major help.please help.thx

[Boscoe]

First of all, take a breath. I know you don't think so, but it is not as bad as it seems right now.

What state do you live in and about how much $ do you make each year? If you do not make alot, you could file chapter 7, use the available exemptions and keep your house, even though you are behind. But don't wait too long.

I would recommend meeting with some bk attorneys as soon as you can, to get their thoughts on what chapter and how soon you should file.

You should be able to discharge all that credit card debt, but you may lose those parcels in order to keep your house.

[6ftladycop]

We Have All Been There so we are here to Help....

Hi,
I was just like you a few months back and everybody here was so helpful to me. Since they were helpful to me, I am going to give you some STARTING OUT advice. At some point, information that I tell you about here will help you out down the line. When I got this information, I was so happy because it was so worth every moment I spent researching, every book I read from the suggestions here and every paper I zeroxed or found. So try not to be stressed. I know its not going to be eazy, but take a deep breath, try and relax if you canand look for the following items once you get your bearings.

1. Find 6 months of paycheck stubs(you will need theses)
2. Find 2 years of income tax forms(copy of what you filed)
3. Contact big 3 credit companies Experian 888-397-3742, Equifax 800-685-1111 and Trans Union 800-888-4213. The responses you get back in the mail or online if you chose to get it that way will have all the addresses of all of your creditors. When you decide to file, there will be a use for all these addresses on your paperwork for filing bankruptcy.
4. Find any old medical bills, old bills of any type that you have never paid, any paperwork about garnishments, judgements and law suits that are active now or will be.
5. Stop using any credit cards you may have "open to buy" on. If and when you file, the information about charges you made prior to filing will definitely come up. Do not take the chance, if you are thinking about filing, stop right now.
6. Check all credit card statements that come in the mail from this point on. Keep them and read them. Look for any large purchase or charges and start getting your explanation about "why" prepared right now. This may come up during your filing.
7. If you have cars, find the insurance paperwork on the vehicles and make sure it is up to date.
8. One thing I discovered, the "payment Address" on credit cards statements and the addresses on credit reports along with the addresses for "written inquiries" on credit card statements sometimes all can be different. When listing people to contact, list all address for each credit card and loans you have.

I do not want to overload you. I am sure there are others here on the forum who have additional information to give you. Remember, relax, we have all been there. Take a deep breath and look for any or all of the things I mentioned to you. Believe me, they will help when you make your decision to file.

remember: you want if possible all old bill balances no matter how small or what they are to be discharged in a bankruptcy, so find all that you can especially things that have never been paid...loans, credit cards, medical bills, any bills no matter what.

remember: find a copy of "Bankruptcy for Dummies"...man did this book ever help me. I read it from cover to cover until I was somewhat familiar with terminology and definitions. After you read that book or other books similar to it, when you continue to post here, all the things you read will eventually make some sense to you. I know it did me. Good luck and god bless. I got all the way through so far with all this information and my 341 Meeting believe it or not is tomorrow 8-28-07 at 1:30pm. I am not nervous anymore thanks to all these folks here.

[lrprn]

Welcome to BK Forum, oskieman! Glad you found us!

So we can help you better, can you please tell us:
- Which state are you in?
- How much money did you make from all sources in the last six calendar months?
- Are you married? If you are, is your spouse filing with you? If your spouse is filing with you, how much did he/she make the last six calendar months?
- Do you have children or other adults living with you in your home? If yes, how many?
- How much is your house worth and how much equity do you have in it right now? (Equity = value of home minus what you owe on the home)
- What other assets are you hoping to save? (Cars for example)
- Are the 'parcels' you have land property? If they are, are the land parcels developed or undeveloped? What is their approximate value?
- Is your debt personal, business-related, or a mix?
- Have you met with any bankruptcy lawyers in your area yet?

Sorry for all the questions, but this will help us help you better. Hang in there - brighter times are ahead. You're in the darkest hours right now - it will get better.

[oskieman889]

thanks a million(wish i had...lol)

well first of all i live in ca.
my income was like 30,000 due to work slow etc...
no im not married
have 1 child and a fiancee
my house is woth like 275k i owe 247k
have 2 parcells worth 40k each right next to my property,i currently use them thats why i hate 2 part with.
(can i change ownership top someone else without getting in any trouble???
my downfall was too much credit and used it all.now im stuck...
i have not met with abk lawyer kinda afraid 2.
appreciateall the great feedback,im glad i found this forum.im glad i aint the only one.

Welcome to BK Forum, oskieman! Glad you found us!

So we can help you better, can you please tell us:
- Which state are you in?
- How much money did you make from all sources in the last six calendar months?
- Are you married? If you are, is your spouse filing with you? If your spouse is filing with you, how much did he/she make the last six calendar months?
- Do you have children or other adults living with you in your home? If yes, how many?
- How much is your house worth and how much equity do you have in it right now? (Equity = value of home minus what you owe on the home)
- What other assets are you hoping to save? (Cars for example)
- Are the 'parcels' you have land property? If they are, are the land parcels developed or undeveloped? What is their approximate value?
- Is your debt personal, business-related, or a mix?
- Have you met with any bankruptcy lawyers in your area yet?

Sorry for all the questions, but this will help us help you better. Hang in there - brighter times are ahead. You're in the darkest hours right now - it will get better.

[Boscoe]

if that 30k is for the whole year, in ca you definitely would qualify for a ch 7. The parcel question depends on whether your exemptions will cover them. Are the really worth 40k still, especially in this depressed R/E market?

Your best bet to keep them would be if they were appraised for lower amounts than 40k each. Otherwise, the trustee will want them to sell and use the $ to pay off creditors.

You cannot sell or transfer to a family member, because then you would have cash that could be used to pay off your bills.

My first guess would be that you either can do a ch 7, give up the land, keep the house and be done in about 90-120 days from filing, or do a ch 13, have to live a bit tightly for 3 years, make 36 payments to the bk trustee but keep the land. All depends on how much you want to keep them.

[lrprn]

Boscoe makes excellent points. Only thing I will say differently is:

Giving your properties to a relative or friend close to bankruptcy is going to send up a huge fraud flag. Don't want to do that. Selling your property close to filing isn't fraud, but as Boscoe said, it does give you cash that you aren't likely to be able to protect with either of CA's exemption systems.

With your income so far below the CA median, the chances of you showing sufficient disposable income on the Means Test to file Ch 13 are very small. Doubtful this is going to be an option for you.

You have assets the trustee is going to be interested in taking, so you need sound legal advice to know what your best options are, so make appointments to see 3-4 bankruptcy lawyers in your area. Most give free initial consultations. You'll learn a lot - don't be scared. You need to understand your situation to make the best decisions for you, your fiancee, and child going forward.

Hang in there - keep asking questions. We'll help you as much as we can.

[oskieman889]

if that 30k is for the whole year, in ca you definitely would qualify for a ch 7. The parcel question depends on whether your exemptions will cover them. Are the really worth 40k still, especially in this depressed R/E market?

Your best bet to keep them would be if they were appraised for lower amounts than 40k each. Otherwise, the trustee will want them to sell and use the $ to pay off creditors.

You cannot sell or transfer to a family member, because then you would have cash that could be used to pay off your bills.

My first guess would be that you either can do a ch 7, give up the land, keep the house and be done in about 90-120 days from filing, or do a ch 13, have to live a bit tightly for 3 years, make 36 payments to the bk trustee but keep the land. All depends on how much you want to keep them.

the land has probably lost some value,
i make about 45,000 but works been slow.
i need to know if i can keep both(house,land) and still file.
i hate lose one or the other.
thx appreciate all feedback

[keepmine]

You can file a Chapter 13 and keep your assets. You can include the mortgage arreage in the plan but, you must stay current on the mortgage.

[JRScott]

If you qualify for a Chapter 13 you could keep the it all, but given your income seems low for California that might be hard to do because you might not have enough disposable income.

If you go into a Chapter 7 it is likely you'll lose the land though you could still keep your house depending on the exemptions for a homestead. The other land probably would be taken by a trustee and sold to pay your creditors.

Now rather than let the Trustee do that you might could chose to sell one of the parcels yourself. If you get 40k for it that would be enough to cover your credit card debts assuming no mortgage on the parcel. This way you'd also get the choice of which parcel to part with whereas if the Trustee does it you might not have a choice. Just an idea.