Really need help and opinions....

[losing_it]

Thats a great idea. I don't have to worry about the roof, its a condo. But still this place can use some fixing and replacing. My heating/AC unit and water heater are 20 years old. And it can benefit from quite a bit of updating. The only thing is I don't have a job, my credit rating is probably very low now, and the interest rate would probably be pretty high and thats if I could find someone willing to take a chance with me. My current interest rate is 5.1 and thats one of the main reasons I want to keep my place. Thats something to think about though.

Has anyone who reads this been in my shoes? $47,000 debt and with only about $15,000 in equity (taking $5000 out for my exemption). I really can't picture them logically wanting to enforce a sale if they put a lien on my place because they won't get much at all. Especially when I can tell them to just give me some time to get back on my feet, finish my degree and get a good paying job. Then I can start payments again, but within reason of course. This is when debt settlement would come in handy. In my state, statute of limitations is 10 years so its not like they would run out of time waiting for me.

[AAAArt]

You really need to talk to an atty. Most give free consultations.
My opinion is that you can prob figure out a way to keep your home through Bk w/ an atty's help.
Now, and this certainly isn't legal advice. This is advice from a fellow Harley owner. If you think some time will help, why not try to get a loan against the Sporty? Do NOT under any circumstance go to a Title Loan co. They can have triple digit interest rates. You can go to a somewhat sub-prime lender (but don't pay anymore than 25%-30% interest rate and even that is high).
I realize that this is rather unorthodox advice, but if it buys you 6 months or so, then maye your situation will have changed...or if you do have to file Bk, the bike won't have much equity in it.
Or...sell both the car and the Sporty, buy a new (or near new) inexpensive car. You should have enough cash to make a down that is large enough to get you a decent loan and you have would still have some cash to help you for a while.
Whatever you do, I wouldn't let them take the house, car and bike, but I think that you have other options. Start thinking creatively. And consult an atty.
BTW, if (in worst case scenario) you have to sell the Sporster, Harley will still be making bikes in 2-3 years and you can get another one.
I guess what I'm trying to say is that you should consider other options before you enter Bk with a clear title on a car and bike and too much equity in your home.
Remember that is is illegal to defraud or attempt to defraud. You don't want to do that. But, OTOH, it is wise to "plan" your Bk. If you're working on a degree, it might be better to put your current equity to work for you than to just hand it over to the Bk courts. If you use this plan with the REAL INTENT that maybe by doing it, things will be better in 6 mos, then it is not fraud. If things work out, then great. You will be saddled with some debt that you will have to pay off, but not a Bk on your record. If not, then they still can't come back at you and if you lose stuff, you lose it, but it has bought you time to continue your education.
Be careful though, because this strategy will not work if you declare Bk in 2-3 months. And remember, right now, you are NOT "planning" on declaring Bk, you are merely exploring all of your options.
I know that many of you might think that I am suggesting some kind of scam or legal chicanery. I am most certainly not. I just happen to think that this particular individual has some equity in items and may have some other options worth considering. Since none of us know for certain what the future holds, but his/her case shows signs of improving in the near future, I thought some planning and thinking of options rather than just determining the exact wording of the law might be helpful. Art

[Minnymouth]

AAAArt,

I think your suggestions of finding other options other than bankruptcy is a good idea when a lot of equity is involved. Yes, you can let your equity "work" for you in some cercumstances. That can be a good thing.....
No one really "wants" to claim bankruptcy, unless they are just one of those people that run up a lot of debt and then scream bankruptcy to get out of it..... These are the "fraud" people you hear about and that trustee's really look for. People who really abuse the system for their benefit.....

Suggestions on how to avoid bankruptcy are always good tips......

Sometimes "NOT CLAIMING BANKRUPTCY" is in the best interest of the person filing.... especially if their situation could change in the next few months.

Kind of like those that hurried and file before Oct 17 to get under the old laws. Many may not have had too, but did because they were afraid they would get screwed under the new laws......

Just my thoughts,

Minny

[losing_it]

Thanks for your info and opinions Art and Minny.
Art thats one thing I thought about was maybe trading in my car and the bike for something newer. My current one is a 97 with 124,000 miles but shes a strong runner. I've had it over 5 years (bought it used with 73,000 mi for $7000), and all Ive had to do is replace the water pump and battery, and a tune up. I keep the oil changed and regular maintenance on it and don't abuse it, and its really paid off. It runs as strong as the day I bought it, and gets 28 mpg. The BB value on it is $1600.

Then I thought maybe I will just sell the bike some time around April to hopefully get a better price with the warmer weather. I could use the money I make off of it to try to negotiate a payoff with one of the cards, as long as they're willing to settle for half of what I owe. Then I could focus on the other 2 cards. I know I'm not supposed to sell anything within a year of filing BK so right now I'm thinking I can buy enough time to let at least a year go by after I sell the bike before filing. The collections are just now starting and I really don't think I will be sued into selling my place within the next 1.5 years. I would think the process would take longer than that.

I have a job interview tomorrow for a pretty decent paying job. $28,000 to $30,000 per year. My best friend works there and got me the interview and he said I have a good chance of getting hired since it's related to a job I had from 1995-2001. I was laid off from that one (job moved to China), and life has been crap since. Thats when the credit cartds started being used more, and the majority of them were used for living expenses, medical bills, and robbing peter to pay paul I should have never done that. Probably around 30% of the charges on the cards were from doing that. I didn't want to be late on a pymt.

I'll admit to some weekend spending going out and a few vacations too (under $500 for both vacations though). But I had intentions on keeping my credit clean and paying them off. Then this year hit me hardest with the balance going to the limits and the CC's upping my min payments. I just couldn't pay anymore.

If I get this job though, I'm hoping the CC's and collections will work with me. They need to adjust my Apr down from 35% and will have to settle for maybe $100 per month for each card instead of $300 to $400 for each. But I guess if they are getting something, then they won't try to sue me, even if it takes me longer to pay them off.

How long do you think CC's and collections will wait before they start suing me and trying to take my bike and property?

[StaciMM]

If you sell the bike, keep paperwork just in case.

There isn't anything wrong with selling before, especially if you're doing it to avoid BK. What you don't want to do is sell something for a low price in order to give the asset to someone else. Keep a papertrail, perhaps even something to show the market value at the time if/when you sell it.

If its worth $6000 and you sell it for $1000 to your best friend, PROBLEM. If you sell it to someone for $5500-6000, though, you're ok.

[AAAArt]

Good point about keeping the paperwork. I went to Office Depot and bought a sales book w/ duplicate copies and the stuff I sold to pay estimated taxes, I first had appraised, then sold for more than the appraisal and had signed sales receipts for my Bk.
I know that now is more of a "buyers time" than a "seller's time", but check Craigslist and EBay for what they are now selling for. People really don't come down that much anymore, since there are so many parts of the natiion that can ride year round, and it is such a great Christmas present.
Don't know how long you can hold off the cc's. Usually only about 3-5 months from what I've heard.
They also don't want to deal with you until you file Bk. Once you do that, you start getting offers for 0% interest and lower payments. Also if you try this route, make sure that you do it w/ all of them and explain that to them. They hate to think someone else is getting full payts and not them.
You say that your wages can not be garnished in S.C. That is good. Whether they sue or not is another question and if they get liens against you, that could be bad.
You need to get your car and bike appraised. Kelly Blue Book does motorccycles as well as cars. You want to look at "trade-in value". Also, if you need a nice low appraisal, talk to your Harley dealer and a car lot or two and ask them to put in writing what they would give you for it right now. You mayy want low appraisals in case you want to buy the stuff back from the Bk Trustee,
What worries me about waiting til April and selling the bike is that you are pushing back the time table to file by another 4 months and it doesn't give you money for now.
Personally, I would NEVER sell equity to make partial payts on cc's unless you know for sure that you are going to be able to pay them all off in full under the current interest rates. To have money to live on, money for education or to protect an asset from being debt free so that the Trustee would definitely take it, that I would consider.
As Staci said, you cannot sell an asset for considerably less than it is worth or that is fraud. Ypu can sell it to a friend though for the appraised value and have the unwritten arrangement that you can have first right to buy if they sell or that they will sell it back to you at the same price a year or so down the road if you can then afford it. Actually this wouldn't be much different than a secured loan, but you wouldn't have to buy it back and if you weren't able to buy it back, then they would have a nice bike at a good price or go ahead and sell it. They might even be able to sell it later at a better price and split part with you if yoou weren't on your feet enough in a year to buy it back.
Congrats on the job and good luck. Art

[StaciMM]

Regarding selling to a friend, to buy back... Shouldn't cut any corners. Have the person listed as a lien holder, have an agreement in writing, and document any payments.

[losing_it]

Well, I did some investigating and found out the last 1 bedroom condo in my building sold for $130,000 about 4 months ago. It was 858 sq. feet. Mine is 630 sq. ft so that makes my little 1 bedroom worth $95,500. And after the $5000 homestead exemption, they would get $500. I'd have to say its not worth pursuing legally in court Especially since I havent even taken into consideration that the heating/ac unit, appliances, and hot water heater is 20 yrs old. That would bring the value down a little more. So then I might qualify for ch. 7 w/o losing my place. I'd lose the bike though. And maybe a few guitars if they knew I had them. I have 6 worth probably about $2000 combined. 3 electric, 2 acoustic and 2 bass.

Does the trustee come out to your place to see what you have as far as assets? My furniture is 9 years old so it can't be worth a lot. And I have a tv (worth about $250) and a stereo (worth about $700).

[Genenco]

Does the trustee come out to your place to see what you have as far as assets? My furniture is 9 years old so it can't be worth a lot. And I have a tv (worth about $250) and a stereo (worth about $700).

No, the trustee will rely on other expert investigations....Such as a housing inspector, and others. (Few trustees have the spare time to look anything over)

But in all cases, if you're honest and truthful, you will lose (Possibly) some things, but you will be walking out free and clear, lie and you'll wish you'd
never been born...

[AAAArt]

Well, I did some investigating and found out the last 1 bedroom condo in my building sold for $130,000 about 4 months ago. It was 858 sq. feet. Mine is 630 sq. ft so that makes my little 1 bedroom worth $95,500. And after the $5000 homestead exemption, they would get $500. I'd have to say its not worth pursuing legally in court Especially since I havent even taken into consideration that the heating/ac unit, appliances, and hot water heater is 20 yrs old. That would bring the value down a little more. So then I might qualify for ch. 7 w/o losing my place. I'd lose the bike though. And maybe a few guitars if they knew I had them. I have 6 worth probably about $2000 combined. 3 electric, 2 acoustic and 2 bass.

Does the trustee come out to your place to see what you have as far as assets? My furniture is 9 years old so it can't be worth a lot. And I have a tv (worth about $250) and a stereo (worth about $700).

Good news on the Condo. Re; Guitars...I had mione appraised at a local music store and a pawn shop. Appraisals were pretty similar. Basically the formula we used was (and remember that this is outright buy and not trade-in). Music store pays 50% of MSRP when they first purchase. They will buy it back for 50% of what they originally paid for it, hence "forced sale value" is usually close to 25% of MSRP. Garage sale value may be even lower, but since I sold some of mine to pay estimated taxes, I needed to get an appraisal.
Re: the TV and stereo...I don't go to many garage sales, but I have never seen items like this bringing that kind of cash at a garage sale. Remember the value is based similar to the IRS "forced sale" value. If youhad to sell it w/in 48hrs to 1 week and you didn't know about EBay etc, so you had to resort to a garage sale, what would the item bring?
Good luck, Art

[StaciMM]

I don't know HOW or even if this is being enforced, but I remember reading that w/ the new laws, replacement value NOT garage sale value, is used to determine value of assets.

On the condo-that is probably the best comparison to use. Recent sales in your area, I think, would make a more realistic estimation than anything else. Keep an eye out for any others that sell also.

[AAAArt]

I forget that people filed after the 16th. Art

[davids]

hi

I sent you a msg.