Just filed chapter 7, lots of questions

[newtson]

Hi all,

My wife and I just filed chapter 7 two days ago (pro se) and I have several questions:

1) Can the trustee seize our personal bank accounts? We just have a a few dollars in there, but would like to use them to pay bills etc going forward.

2) We have two business accounts registered under the business tax ids. Are we good to deposit small checks from customers or should we be looking over our shoulders for the trustee to seize these accounts. We don't really want to open new accounts as we have debit cards and checks for these two accounts.

3) We are not reaffirming any of our debt, but are considering staying in the house we bought last spring. It is a VA loan and my wife talked to the lender today about possibly renegotiating as prices have dropped and so have interest rates. Lender told her we should have refinanced before we filed BK and that we now are out of luck. Furthermore he told her to just keep up the payment, he did not ask us to reaffirm at this point. Any advice on how to proceed with this?

4) We have two car loans on cars we would like to keep, but we are not going to reaffirm. Has anyone had any luck negotiating with auto lenders for a better deal during bankruptcy? Also, I understand some people just keep paying, but that the lender then can reposess the car at any time. Your advice is greatly appreciated.

Thanks,
N & S

[JRScott]

1. If the amounts are low then there is no danger. What is in the accounts on the day of filing is the important amount. This is the amount that you need to have exempted in your schedules. If you failed to exempt them then you need to amend your filing and do so if so allowed in your state.

2. See 1.

3. Most likely they wouldn't have worked with you anyway. However hope is not lost, keep making the payments on time if you want to keep the home. Once the BK is closed you might be able to work out another arrangement or seek a cram down.

4. Depending on state law you may or may not be able to do a ride through, that is to continue making timely payments and keep the vehicles. If however you are late in that payment they can seize the vehicles. It is highly unlikely that they'd cramdown your loans to more favorable terms, they certainly wouldn't do so without a reaffirmation as part of the agreement.

[HHM]

I have to say...I had to chuckle a little at the thread title

You "just filed" chapter 7...and NOW you have questions Seems like you should have answered your questions BEFORE you filed.

In any event.

1. Legally yes, but practically no. If its only a few dollars (less than $500), the trustee is not going to care.
2. Now that you have filed, you are ok, but the business is an asset of YOUR BK, anything that you have a right to in the business, so does the trustee.
3. You will be out of luck for a refi, and since you filed BK, a modification would be risky as qualifying for a mod usually requires a default on your mortgage payment. Just keep making your payments.
4. Unless you decide to REAFFIRM, you will not get any renegotiation. You can attempt to renegotiate in the context of a reaffirmation, but other wise, probably not going to happen.

Do you have an Attorney.

[newtson]

Thanks for your replies.

Nope, we do not have an attorney as the $2,500 - 3,000 we're saving can pay a lot of utility bills and trips to the store in the next few months.

Yes, I realize some of these questions should have been asked before filing, but it seems like there are always new questions to be answered.

I deposited a check from a client yesterday and was able to withdraw most of it in cash today, so it seems as our bank accounts are still OK.

Our businesses do not have any assets (a couple of laptops) or any huge receivables.

I have to say...I had to chuckle a little at the thread title

You "just filed" chapter 7...and NOW you have questions Seems like you should have answered your questions BEFORE you filed.
Do you have an Attorney.