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I am not sure anything is really protected under the new bankruptcy laws. All assets are fair game. At least that was my understanding. Might ask your attny if you are using one.
What assets are debtors entitled to exempt from sale by the Trustee?
A debtor filing bankruptcy in California can choose between 2 different menus, or slates, of exemptions, generally referred to as the "federal" and "California" exemptions. These exemptions include, for example, equity in an automobile, a homestead, basic household furniture and furnishings, certain interests in jewelry, tools of the trade, life insurance policies and retirement plans, disability payments, personal injury causes of actions, and other exemptions. In claiming the exemptions, the items are typically valued at their current fair market value, and not their original purchase price. Also, the value of an item is reduced by the amount of any loan (secured claim) that may exist against said item. If there are no objections to the debtor’s claim of exemptions within 30 days after the completion of the meeting of creditors, the exemptions are typically allowed (approved) as a matter of course.
However, to be absolutely positive, a lawyer is a MUST! Liz
I guess I have to ask this; Why did you let your credit cards get so high that you have to file bankruptcy? Is that the only solution, or just the easiest one?
What would you suggest? My husband and myself (children of the 60's) have not been too smart in the past, do you have any other ideas to get us out of this mess without bankruptcy? We just want to get the payments down so we can afford to eat and have cloths to wear. Any suggestion would be appreciated.:
What would you suggest? My husband and myself (children of the 60's) have not been too smart in the past, do you have any other ideas to get us out of this mess without bankruptcy? We just want to get the payments down so we can afford to eat and have cloths to wear. Any suggestion would be appreciated.:
Don't blame society (i.e, saying you are a child of the 60's. So am I but I don't have massive credit card balances)
Be a grown-up and talk to your creditors. Tell them you are having a difficult time but want to do the right thing. Work out a payment schedule.
Cut up your credit cards. Yes, every one of them. If you need something pay cash. If you don't have the cash, wait until you do.
Once you have paid every card off in full, get ONE card. Use it as a convenience card, not for credit. Only charge what you know you can pay off when the bill comes.
Thanks, that is what I wanted to know, can I talk to credit card companies, will they listen and let you make arrangements or just put garnishments on your wages. I hate to sound so stupid but this is the first time in 30 years of marrage we have had this trouble. My husband just retired and there just isn't enough money left for the bills as they are.
I see you are a broker, no doubt you have more money sense then I do, all I am is a secretary
can I talk to credit card companies, will they listen and let you make arrangements
Most will but they will still want a certain amount of money each month and all it takes is ONE that will not cooperate.
I suggest talking to a certified credit card counselor in your area. NOT one advertised on TV but one certified by the federal government: U.S. Trustee Program/Dept. of Justice
Because if you DO end up going the bankruptcy route, you will have to go thru this step anyway. Liz
You'd better do some serious research before declaring bankruptcy there are new laws. Contact the above noted site for a referral. I know people that were able to keep their homes but had to give up their cars in favor of a clunker that was given to them instead.
Credit card companies will negotiate, especially if you have a chunk of money to settle with. They will also establish payment plans I believe. What does often happen is that any portion of the debt that is forgiven is taxable as income to you. They will send a form a year end which you have to include in your taxes. This can cause a financial pinch too. They may also sell the amount of forgiven debt to a nasty collection agency who buys it at a discount.
You need to find out where you're bleeding financially. What caused this problem? If your expenses are more than your income you've got to cut down, sell out and rent, move, stop spending, or get adll income. If the fundamental cause isn't addressed the problem will continue and escalate.
My husband just retired and there just isn't enough money left for the bills as they are
He needs to go back to work NOW. Liz
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have not been too smart in the past, do you have any other ideas to get us out of this mess without bankruptcy? We just want to get the payments down so we can afford to eat and have cloths to wear. Any suggestion would be appreciated.:
