i cannot believe this is happening but i am here

[mylastresort]

i owe around 50k in credit cards, another 25k in school loans. 3 years ago i had a pretty good job and long story short my employer asked if i could also do another job for a few months. so thats 2 full time jobs at the same time, after 2 months i was so stressed out i just resigned without even thinking of the consequenses.

anyhow luckily 1 year ago i landed a part time job, i have moved into my parents house, they arent charging me rent. i got a defferment on my school loans. even with that I simply cannot keep up with the credit card payments, no way.

i tried to do the honorable thing for so long but i am running out of time. i hate to give up but i dont think i will have any other choice. after running the numbers i think i have maybe 3 months at most, if i cant find a full time job.

i am 40, and for some reason nobody will hire a 40 year old for a full time job. i have applied to many many many jobs but i never get selected. bottom line, if i cannot get a full time job within 3 months i will have to do what was unthinkable to me, file for bankruptcy.

a question i must know the answer to is this. i have a car and motorcycle that are paid off. i cannot lose these. how can i work without them.

if i file for bankruptcy will they take those possessions away from me?

also, if i do file for bankruptcy, afterwards will employers know this when i apply for jobs?

[justbroke]

a question i must know the answer to is this. i have a car and motorcycle that are paid off. i cannot lose these. how can i work without them.

Why do you need both? The Trustee will ask the same exact question! The real question is, will you have exemptions to protect those assets. If not, then you will need to surrender one or both to the Trustee for liquidation.

They do not take your property if it is covered by an exemption. It will depend entirely on the State in which you live (file) and what the value of those two vehicles comes out to.

[mylastresort]

i live in california and it looks like i have a ton of reading to do. how do i get an exemption to protect the car at least?

[justbroke]

i live in california and it looks like i have a ton of reading to do. how do i get an exemption to protect the car at least?

If you do not have a home to protect, California's System II set of exemptions can provide about $21,000 worth of exemptions. So long as all of your personal property would fit within that exemption, you would be fine. Please remember that personal property includes everything from your bedsheets to your motorcycle.

Are you planning to file with an attorney? Even if you are not going to file through an attorney, you could, when ready, seek several (3-5) "free" consultations where you can interview potential attorneys while learning about your particular circumstances. If you file Pro Se, without an attorney, at least you can learn some things form the consultations. Additionally, Pro Se debtors have many resources depending on where you live in California. I do not know the specifics, but our Southern California Pro Se forum members have had success with the free clinics offered there.

Also, if you are filing Pro Se, you should probably purchased a guidebook such as NoLo's How to File for Chapter 7. I believe the eBook is about $25 after the discount.

Also, if you are filing Pro Se, check out our Pro Se forum area. This is where we Pro Se folk gather to talk about the art of filing Pro Se and can ask other Pro Se filers for any hints.

[mylastresort]

thank you for all that useful information. the car i def have to keep, ill sell the motorcycle and home theater equipment before they can get to it. also before i go to the pro se forums, how much does an attorney cost? probably steep (a few thousand ?) if i file i want the easiest possible route

[justbroke]

thank you for all that useful information. the car i def have to keep, ill sell the motorcycle and home theater equipment before they can get to it. also before i go to the pro se forums, how much does an attorney cost? probably steep (a few thousand ?) if i file i want the easiest possible route

The cost of an attorney can be $1,500 or more. It all depends on where you are filing and your specific case. DO not just go selling property just before filing. One of the questions is whether you have "transferred" property within XX days of filing. It's done that way so that you don't try to hide property by selling it "cheap" to a friend/relative with the promise of "buying" it back cheap later.

You only need to see if the value of the property fits with the $21,000 exemption! Remember, you get to use yardsale prices for the non-motor vehicle stuff. Your home theater system, unless it's Krell or Harmon Kardon with Legend Acoustic surround speakers, should not be worth much in a yard sale.

[spidge]

There are few if any simple BK cases so spend the money, avoid the headache and use an attorney. I do hope you can exempt the motorcycle along with the other items of interest and it sounds like you will be able to.

Welcome, and don't feel bad about using a tool designed to help individuals or corporations to get back up on their feet. Its done every day.

[katztoo]

Won't they (the court)take his parents income into consideration since he is living with them now (all household income)? That and the fact he is not paying rent(more disposable income)? Not sure but something to look into.

[justbroke]

Won't they (the court)take his parents income into consideration since he is living with them now (all household income)? That and the fact he is not paying rent(more disposable income)? Not sure but something to look into.

No, they do not take his parent's income into consideration. What happens, is that the expenses that they pay all or a portion of, are reduced by their contribution. This is why an attorney may be better for the poster so that the right combination of expenses are utilized.

The lack of an expense for housing could be problematic on your Schedule J unless you do pay a "token" amount of rent to your parents.

[Drazil65]

Hi, have you stopped paying your unsecured debt yet? If you are going to file then stop paying the unsecured debt NOW and use the money to pay an attorney. I agree with the poster above and say save yourslef the headache, go to a few of the free consults, interview the firms then choose one. Not sure what kind of work you do but have you been to a headhunter to help you find work? Good Luck!

[df04527]

Similar situation when daughter filed, her token rent payment was 235.00 a month. We were cautioned though we may be asked to prove it but weren't asked when it was all over.

[keepsmiling]

Welcome ! You are in the right place.

One place you can feel comfortable and know that your situation is not unique. So many in the same place. It's a crappy time here when an employer can expect you to do the work of at least two people. That kind of nonsense has become so commonplace here now... shameful really.

Anyway... stop paying those cc's yesterday. It will be nerve wracking and guilt inducing... we've all been thru it... but only the first time. You can not continue to flush money down the toilet, and that is precisely what you are doing. You cannot throw away your life, your future..... for the sake of some banks who don't care if you live in a cardboard box or even if you are dead. This is a BUSINESS DECISION. Just like banks make every day.

A small rent payment is certainly reasonable and may be in your best interest. Start calling attorneys today for a free, no obligation consult and ask away. You have plenty of time before anything worrisome happens. Meanwhile, read up on Google Voice for when the phone starts to ring. Once you get used to the idea-- believe me, it took us all a while to realize it's the only way out.... bk will start to look like a life boat.

[mylastresort]

thanks everyone, i will start making some calls to attorneys. im confused about another thing though, is it better that i pay rent? should i say that? that doesnt make sense but what do i know. i did not want to get my parents involved in this, damn what a headache.

[keepsmiling]

There are many things that seem a little bass ackward in bk, including at times, to go into MORE debt (not something YOU need to worry about, that's for people with more income)..... this is one of the q's to ask an attorney. Your parents can always give you the money back later. Since you live with them, you might want to start being open with them about what's going on. Their phone will start ringing too. They might turn out to be far more supportive than you think.

[LadyInTheRed]

If you do not have a home to protect, California's System II set of exemptions can provide about $21,000 worth of exemptions. So long as all of your personal property would fit within that exemption, you would be fine. Please remember that personal property includes everything from your bedsheets to your motorcycle.

As of April 1, 2013, the exemption is $25,075.

In addition to that "wildcard" exemption, you have a vehicle exemption of $2,900 that can cover more than one vehicle if your first vehicle is worth less than that. System 2 also has an unlimited exemption for "Household furnishings, appliances, provisions, wearing apparel, and other personal effects" "If ordinarily and reasonably necessary".

mylastresort, unless your car and motorcycle are very valuable, I suspect you will have no problem keeping them both in BK.

There is nothing dishonorable about filing bankruptcy. It's a business decision that honarable people make all the time.