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jennyjenjen

thinking about finling bk

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Hi, I don't know anything about bk. Please bare with me as I am a bad speller. Heres my situation. I am unemployed, haven't work for 6 years - had kids - no babysitter, my husband works he has his own buiseness - a pizza store. I have 2 credit cards, i'm paying on one, quite paying the other and the collection people keep calling for it. they total about 10 thou. I am a cosigner on the house with my husband, we have a car that's paid off in my name. We have another car which I am the cosigner of - my husband is the primary on it, only have about 9 months of payments left. I only want to file bk for the credit cards. If I file bk, will they try to take my car, and what will happen with my house??? We want to move in 2 years, will this affect my husband trying to get a loan when we move?? and does anybody know how much a bk lawyer cost??

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What state are you in and how much equity is in the home? How much is the car in your name worth?

Most bk lawyers give free initial consultations.

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I live in Pennsylvania. Not much equity in my home we stll owe about 35,ooo, i think my house is only worth about 36,ooo, at the last time i checked on the p.a. assesments website. the car in my name is a 1997, only worth about 1,500.

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Jenny,

BK covers all assets and liabalities and not just certain obligations as credit cards. Home equity is based on market value minus what is owed on the property. Tax assessments usually do not represent market value and are not used in bk. PA has very limited homestead exemptions, so you would probably need to file C13.

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She'll need a job to file a chapter 13.

Pa. allows you to use Federal exemptions which are more generous than the Pa. state exemptions.

You'll have to list all of your liabilities. You can't pick and choose.

I'd say see a lawyer if you don't plan to return to work. Here's the Federal exemptions.

Federal Exemptions as of 01/2005:

>>>

(d) The following property may be exempted under subsection ((1) of this section:

(1) The debtor's aggregate interest, not to exceed $18,450 in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor.

(2) The debtor's interest, not to exceed $2,925 in value, in one motor vehicle.

(3) The debtor's interest, not to exceed $475 in value in any particular item or $9,250 in aggregate value, in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.

(4) The debtor's aggregate interest, not to exceed $1225 in value, in jewelry held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.

(5) The debtor's aggregate interest in any property, not to

exceed in value $800 plus up to $9,250 of any unused amount of the exemption provided under paragraph (1) of this subsection.

(6) The debtor's aggregate interest, not to exceed $1,850 in value, in any implements, professional books, or tools, of the trade of the debtor or the trade of a dependent of the debtor.

(7) Any unmatured life insurance contract owned by the debtor, other than a credit life insurance contract.

(8) The debtor's aggregate interest, not to exceed in value $8,000 less any amount of property of the estate transferred in the manner specified in section 542(d) of this title, in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract owned by the debtor under which the insured is the debtor or an individual of whom the debtor is a dependent.

(9) Professionally prescribed health aids for the debtor or a dependent of the debtor.

(10) The debtor's right to receive -

(A) a social security benefit, unemployment compensation, or a local public assistance benefit;

( a veterans' benefit;

© a disability, illness, or unemployment benefit;

(D) alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;

(E) a payment under a stock bonus, pension, profitsharing, annuity, or similar plan or contract on account of illness, disability, death, age, or length of service, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor, unless -

(i) such plan or contract was established by or under the

auspices of an insider that employed the debtor at the time the debtor's rights under such plan or contract arose;

(ii) such payment is on account of age or length of

service; and

(iii) such plan or contract does not qualify under section

401(a), 403(a), 403(, or 408 of the Internal Revenue Code of 1986.

(11) The debtor's right to receive, or property that is traceable to -

(A) an award under a crime victim's reparation law;

( a payment on account of the wrongful death of an

individual of whom the debtor was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;

© a payment under a life insurance contract that insured

the life of an individual of whom the debtor was a dependent on the date of such individual's death, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;

(D) a payment, not to exceed $18,450 on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent; or

(E) a payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.

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Let's start from the top.

You need to know how much equity is in your home? What's its mkt value-not it's value for tax purposes. What are similar homes selling for in your area.

Is your car worth more than $2925?

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well I am in good standing with my one credit card, been making payments on time. Maybe if I could just hold the "lawyer" credit collector off for a while....then I could just pay them both off at income tax time. Maybe I could just send him 500. a month. Any thoughts

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Well, if you owe $35K, you'll be under the federal exemption for the home plus, your car is exempt as well.

$10K is not worth filing bk over unless, you don't intend to return to work. You never know, a divorce or the death of your husband and you've an asset with the possibility of a judgment creditor making a claim.

Nolo Press has good book titled "how to file a Chapter &"-may be worth reading. Also, most bk lawyers give free initial consultations. Talk with one or two and see what they say.

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Looks like we cross posted!

If you can avoid bk, that's the best course.

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Jenny,

Home equity is based on market value minus what is owed on the property. Tax assessments usually do not represent market value and are not used in bk.

I wish my Attorney would have told me this. I went with the tax assessment valuation. It got trashed by the trustee who sent his pet realtor out to do a BPO. My house turned out to be worth WAY more than I thought. I lost the house. Our exemption didn't cover the amazing amount of equity the house gained in the last 12 months.

The current housing market is really strange right now...it's taken a dive in some parts of the country, while in other parts (like mine) the prices are spiraling upwards at a tremendous pace. Better get a good idea of market value and be prepared to defend your evaluation to the trustee.

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