Please!!!! 3rd post. Can anyone answer my questions!!!

[DayMDev]

What is the name of your state? PA

Here is a recap of my situation. I am currently not working and living with my boyfreind. He is paying all living expenses. I have about $20,000.00 in CC debt. My only asset is my car which I purchased for $3,500.00 over a year ago. (with my IRA) I believe it is worth about $1,100.00 now? The title is in my name and my boyfriends name. I have not made a payment on my CC's since January. I have had some cash advances on them in the past. The last ones done were back in Dec.

I guess I am looking for some advice as to what I should do? File for BK or do nothing? What is the worst that can happen If I just don't pay the CC's?

If I do File, how long do I need to wait? How for back do they look at your CC activity? Or what do they actually look at?

If I do file, I understand that you have to put all of the debt into BK. But my question is can they discharge some of the CC and not discharge others?

What about the car. Will I lose it?

Does my boyfriends income effect me or wanting to file?

What about going Pro Sec?

What effect would getting a job probably paying min wage have on me for filling BK? What is the income requirements if any?

Sorry for so many questions, but I would appreciate any and all advise/help with my situation.

Thank You Very Much

 

[bigun]

There are no income requirements to file for BK.
The worse that can happen if you don't file is the creditors may sue you and you've a judgment hanging over your head. Pa. does not allow wage garnishment. You need to put at least 90 days between a cash advance and bk. Preferably, longer.
A car worth $1000, I'd imagine there'll be no problem keeping it.
The trustee may or may not ak about your BF's income but, if you've no job or aminimum wage job, there'll be no question who's paying the bills.
BK is a tough personal decision. $20K and no income but minimum wage, filing is likely your best option.
Nolo Press has a book titled "How to file A Chapter 7" {or something close}. It has samples of all of the schedules.etc. Maybe get that and see if you think you can handle it.
Most bk lawyers give a free iniyial consultation. Talk with a couple and get all of your options explained.

 

[DayMDev]

Bigun,

Thank you so much for answering my questions.

I have a couple of other questions if you don't mind?

You said that PA does not allow wage garnishment. So is it safe to assume that the CC's could not sue or do anthing to me?

I also have read on some other post about only having $500.00 a month left over to be able to file Chapter 7. Is this true.

Again, Thank You So Much for Your Time and Input.

 

[bigun]

No, it's not safe to assume they can't sue. While they can't garnish wages, they can sure levy your bank account. Plus, a judgment can last for 10 years or more and before you can qualify for a mortgage, it'll likely have to be satisfied.

Not sure where you're getting the $500/month. Generally, if you have disposable income of much over $100/month you'll have some difficulty getting a Chapter 7 discharged.

 

[lmelville]

In PA you can use the Federal Exemptions instead of the State Exemptions (most file federal as the State exemptions are much lower). Federal are as follows:

$16,150 in equity which serves as a residence
$2,575 on a motor vehicle
$425 in each of any number of household furnishings or other consumer goods up to $8,625 in aggregate value
$1,075 worth of jewelry for personal use
$850 additional in any property, plus any unused amount up to $8,075 not used in home equity
The right to recieve Social Security, unemployment, welfare, VA disability, support and certain pension benefits.

If your car is worth $2,575 or less you can exempt it and keep it. In our case my car was worth $1275 and paid off...so I was allowed to keep it. My husbands car was still being paid on...we had to list this debt but indicated we would continue to make the payments. He was able to keep the car and we've continued the payments and the bank's never said anything (though they were notified of the BK).

We lost absolutely nothing in our BK as the exemptions covered everything. I was expecting the Trustee to question about selling some collectible items I had..but he never mentioned it. And no, no one came to our house to verify what we owned or to take property from us - for some reason my husband was expecting this. That doesn't give you the right to lie about your property though, we were honest about it...and we lost nothing.

 

[hatemylife]

In PA you can use the Federal Exemptions instead of the State Exemptions (most file federal as the State exemptions are much lower). Federal are as follows:

$16,150 in equity which serves as a residence
$2,575 on a motor vehicle
$425 in each of any number of household furnishings or other consumer goods up to $8,625 in aggregate value
$1,075 worth of jewelry for personal use
$850 additional in any property, plus any unused amount up to $8,075 not used in home equity
The right to recieve Social Security, unemployment, welfare, VA disability, support and certain pension benefits.

Can you please tell me where you found this information? Also, what if the car is financed (worth over $10,000) and you don't hold the title yet? Can it be confiscated?
Thanks.

 

[Ladynred]

There are lots of places to find the state and federal exemptions available to you in bankruptcy.

PA exemptions:
http://www.bankruptcyaction.com/paexemptions.htm

Federal Exemptions:

http://www.bankruptcyaction.com/fedexemptions.htm


If the car is financed and you have no equity in it, then you have nothing to worry about. If your equity is greater then the exemptions, then you may have a problem.