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Old 05-30-2008, 12:46 PM
 
15 posts, read 35,614 times
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Hi
I in the state of minnesota and I need your advise for filling bankrupty.
I have $90000.00 credit c and personal dept. My income is too low. I'm making $12/hour. After paying the mortgage et utilities bills I don't have any money left to pay the dept. I have two kids to take care of. My mortgage is $1195.86/month. My car payement is $325.00/month. My wife and I are paying the mortgage, utilities bills and car loan. She is making $13/hour and don't have nothing to do with my personal dept.
I want to know if I will qualify for BK, and what impac that will have on my wife.
Thanks
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Old 05-30-2008, 01:23 PM
 
18,171 posts, read 20,171,779 times
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Depending on state laws, how much you still owe on the house and what its equity will be, and if you can still afford to pay your home and car.

Assuming you make enough to pay mortgage and the loan on your car (and there isn't a lot of equity in the house). You can safely keep your house and car in bankruptcy IF you can discharge your debt before they attach a lien on your house for it. I would probably file for bankruptcy but keep in mind they can take your stuff (furniture, jewelry, etc etc - stuff with value otherwise they won't bother) but they probably can't touch your house, car (unless there is more than one), and retirement accounts...
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Old 05-30-2008, 03:28 PM
 
15 posts, read 35,614 times
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I bougth the house last year $152000. The balance today is $150000. I get $143000 market value from the state. I get two cars. One car is already paid off.
Please I need more reply.
Thanks
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Old 05-30-2008, 08:37 PM
 
Location: Backwoods of Maine
7,213 posts, read 8,373,561 times
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Quote:
Originally Posted by mawulolo View Post
I bougth the house last year $152000. The balance today is $150000. I get $143000 market value from the state. I get two cars. One car is already paid off.
Please I need more reply.
Thanks
You need to get rid of the house. That is your number one problem. Some here would say, "No - the house is what he should keep!". But the value of the house will keep going down for a few more years. You will be more underwater with that house then you are now. Sell it while you still can get a reasonably close price for it, in regards to your mortgage.

You can sell the house and free up some cash. You have no equity in it, anyway. If you file bankruptcy for your other debt, expect to pay fair value for the car you have that is paid off. Also the same for any other assets of value, such as a boat or ATV. You will likely have to forfeit a weeks' worth of pay, so plan ahead for that.

Don't let others scare you about the trustee taking away your jewelry or furniture. They are not interested in furniture unless it is new, expensive, and was recently charged. Jewelry can always be put aside for awhile if you are in bankruptcy. Just remember not to wear it to court! This idea that they go through every little thing you own is not true. They are looking for assets that they can sell to pay to your creditors. Most insolvent people have nothing of real value.

By the way, your wedding and engagement rings are exempt from seizure.
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Old 05-31-2008, 07:54 AM
 
18,171 posts, read 20,171,779 times
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Personally, I wouldn't sell the house, yeah its overpriced but so are all the houses still... unless you plan to rent for the next 4 years and try again (I hope they take your bad credit to make you a loan)...I doubt there are houses for cheaper with median house price in the 200k region. I would live in it as long as the mortgaged is fixed at an APR you can afford.

You free up the house and have less payments. That much is true, and the people you owe can garnish your wages since you have more money now as well. You have two cars and one is paid off... if both car titles are under your name, you stand to lose one car... I would switch the title to someone else to protect it from the trustee.

Its not common that the trustee would take your belongings.. the point being, they can and have in the past... chances are they won't take anything from your house but that is no guarantee and you might as well come protected then unprotected and play with the odds...hide your valuables and hide them well (and I am not talking about a safe deposit box)... your cash in your bank savings and checking accounts are free game and they will come after that... I suggest hiding it... they want quick cash first and if I was your creditor that you owed me... I will come into your house and take whatever I want... but then I am not your creditor and even though it is unlikely to happen... it can still happen.. the point... protect your belongings as much as you can, why even risk it... when you can hide it temporarily at someone else's house or simply changing the ownership's name..
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Old 05-31-2008, 09:27 AM
 
Location: America
6,987 posts, read 15,618,136 times
Reputation: 2072
why not sell the house, pay off all your debts and save up and get a house when you are debt free (and prices have bottomed). Adding debt on top of debt is nonsensical in my opinion and highlights the problems here in America. Everyone wants to have their cake and eat it to. I know a girl who has 10,000 in debt and yet she has a ton of savings. Never mind if she lost her job that savings will dwindle and that debt will grow. Not sure when carrying debt became the thing to do but its something that should be avoided. Trust me, houses are not going to disappear tomorrow so you will be able to buy another one later and this time you should be in better financial shape. Best of luck.
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Old 05-31-2008, 02:07 PM
 
15 posts, read 35,614 times
Reputation: 18
I don't have any equity in that house. I want to correct something. My wife and I bougth the house. The car the one is paid off is my wife name, and she said I'm responsible for my dept. What is going to happen to her assets in my bankrupty.
Thanks
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Old 05-31-2008, 02:09 PM
 
Location: America
6,987 posts, read 15,618,136 times
Reputation: 2072
^^

Any of the debt you have connected to her? I mean like credit cards that you and her signed for? If not you should be good.
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Old 06-03-2008, 05:08 AM
 
Location: NE Florida
17,835 posts, read 30,180,911 times
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Here is a link to the BK exemptions for the State of Minnesota
Minnesota Bankruptcy Exemptions

Your best bet would be to pay a visit to a BK attorney most offer no charge consultations
Hiding property by putting it in another persons name is not a good idea they courts review transaction for previous months and if they see a transfer of property right before the BK is going to set off red flags
The exemption in your state for "personal property" is $7200 compared to a lot of states this is high. A lot may depend on the trustee, if I saw someone who had $90k in CC debt it would make me take a closer look at how much personal property they were "claiming to have"
Another thing to keep in mind is if you have used any of the cards with in 90 to 120 days of the BK there is a chance the credit cards may show up to contest their dismissal at the BK hearing. CC companies have BK teams whose purpose is to review each account for usage history when the BK notice is received.

If your wife is not on any of your cards as a joint card holder (authorized users are not considered) unless your state has different laws she will not be responsible
If she is on any cards as joint card holder then she will be responsible for the balance.

Also all debt must be included in the BK so if any of your personal debt should be loans from friends or family members they must be included you can not "pick & choose" the same goes fo any CC that may have a "0" balance they must also be included, many folks have thought they could keep a card with no balance so that they have a card after the BK
This is general information that I learned while working in the recover dept for a major Credit Card company
Going to see an BK attorney is your best bet to get the complete run down on your states laws
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Old 06-03-2008, 10:46 AM
 
Location: Oxygen Ln. AZ
9,321 posts, read 16,757,792 times
Reputation: 5694
Dont get rid of your house because the market is down. That is the dumbest thing I have witnessed in my decades on this planet. It will grow again and perhaps become your biggest asset in a few short years. Contact the credit card companies and work out a payment plan. DONT GET RID OF YOUR HOME>
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