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About to file chap 7 couple questions


BALLOONBOY
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I'm about to file chap 7 and I have a few questions before I talk to a attorney.

1) I have a ING deferred comp account that I would like to cash out (I'm aware of the tax hit) because I was canned from the job that I had it through and I could use the money for some expenses. (I would not even be able to come close to paying off my debt with it) My question is.. if I were to cash that out before filing would that look bad for me? What if I did not deposit it into my bank account? I know the attorneys need to see bank statements.

2) Currently I have 2 vehicles in my name. No lien on either. One vehicle was totaled by my insurance company but it is still registered and I am driving it. The car is basically worth next to nothing because it is salvaged. If it is a problem having 2 vehicles do I transfer ownership and title to a friend or my girlfriend?

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1) I have a ING deferred comp account that I would like to cash out (I'm aware of the tax hit) because I was canned from the job that I had it through and I could use the money for some expenses. (I would not even be able to come close to paying off my debt with it) My question is.. if I were to cash that out before filing would that look bad for me? What if I did not deposit it into my bank account? I know the attorneys need to see bank statements.

Yes, they'll look at bank statements and the Trustee will see that withdrawl and want to know EXACTLY where every penny of that money went. If you can prove that it all went to NECESSARY living expenses, you'll probably be ok. If you do this, keep EVERY receipt and document it.

2) Currently I have 2 vehicles in my name. No lien on either. One vehicle was totaled by my insurance company but it is still registered and I am driving it. The car is basically worth next to nothing because it is salvaged. If it is a problem having 2 vehicles do I transfer ownership and title to a friend or my girlfriend?

Exemptions generally will only cover the equity in ONE vehicle. However, if you have any wildcard exemptions that will make up the difference, you are unlikely to lose it. DO NOT transfer ANY assets to anyone ! That would be seen as a fraudulent transfer and the Trustee could go after that asset, and your GF to get it. You could also risk having your case dismissed.

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Don't even go there. The Trustees now do far more investigating than they did before the law changed. You should NOT attempt to hide assets, if the Trustee discovers you did so, your case will be dismissed and you could face charges for bankruptcy fraud.

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Plus, creditors will conduct asset searches as well. That {IMO} is where they'll most likely uncover the account.

All they need to is pull your credit report and see the bank in the inquiry section. It's an easy leap to assume with an inquiry, you opened an account.

Take it from those of us who've filed. Play it straight up and don't get greedy. The downside is signficant.

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