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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15835
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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My mother is 82 and has a large credit card debt that she can

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My mother is 82 and has a large credit card debt that she can no longer afford making the monthly payments. Her home was put in all of her childrens names so that is not considered an asset. However, my mother took our treasury bonds in her name and each of her grandchildren. Those bonds were to be given to the grandchildren upon her death. IS that considered an asset. Should she list the bonds, not list the bonds or should she cash them in now before the bankruptcy.
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 3 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

When was ther house transferred and what is the value of the cds?

Customer :

She lives in a trailer home and it was transferred years ago to the children so it would be considered non-probate when she dies. I believe the trearury savings bonds amount to $20,000 but that is all she has. Mother may need that money to go into an assisted living care facility or to continue to support herself. Her income tax shows that she makes $20,000 a year with her pension less her healthcare.

Customer :

Please note that it has her name and the grandchildren's names on the bonds

WALLSTREETESQ :

A cd is considered as cash in a bank account, the cd's in her name only would be part of the Estate and she can use her Maryland wild card exemptions which is $6,000 of cash or property of any kind.

WALLSTREETESQ :

The CD'S in the grandchildrens name would also be part of the bankruptcy estate if her name is XXXXX XXXXX as well.

Customer :

Can we or should we cash them now and disburse . She has not filed yet

WALLSTREETESQ :

If your grandmother has no income except her pension, and social security, I would not file bankruptcy and cash out the cd's now and

WALLSTREETESQ :

and close all her bank accounts.

WALLSTREETESQ :

The collections company and credit cards cannot take her pension or social security, they can only freeze her bank accounts or wages.

WALLSTREETESQ :

If she can arrange for her checks to be sent to another bank account, she would be collection proof, and their would be no reason to file bankrutpcy now.

Customer :

ok but one of them is taking her to court.

WALLSTREETESQ :

If they take her to Court, they could get a judgment, and the they cannot collect on her if she only has exempt income, and nothing in her name.

WALLSTREETESQ :

She can create a trust account, in her name and have her social security and pension deposited directly into that account, so she would have no worries.

WALLSTREETESQ :

She does not need to go to Court, and let them get judgments.

WALLSTREETESQ :

If she wants to file bankruptcy, have her cash out the cd's and wait 6-9 months to file bankruptcy so the non exempt amount of the cd's will not be taken.

WALLSTREETESQ :

This list of exemptions updated December 2009. All law references are to Maryland Code of Courts & Judicial Proceedings unless otherwise noted. Federal bankruptcy exemptions are not available in Maryland.


Homestead


there are no homestead exemptions. However, tenancies by the entirety to unlimited amount as to debts of one spouse [In re Sefren, 41 B.R. 747 (D. Md. 1984)]. Also see the section below on "Personal Property."


Personal Property


Bus. Reg. 5-503 - Burial plot.


Bus. Reg. 5-602 - Perpetual care trust funds.


Educ. 18-1913 - Prepaid college trust funds.


11-504 - Clothing, household goods, furnishings, appliances, books, and pets up to $1,000 total; health aids; cash or property up to $6,000 if claimed within 30 days of attachment or levy; lost future earnings recoveries; and any other real or personal property up to $5,000 total.


Wages


Comm. 15-601.1 - Earned but unpaid wages are exempt as follows: in Caroline, Kent, Queen Anne's, and Worcester counties, the greater of 75% of actual wages or 30 times the federal minimum wage; in all other counties, the greater of 75% or $145 per week.


Pensions


11 U.S.C. § 522 - Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000 per person.


St.Pers.Pen. 21-502 - State employees


11-504 - ERISA-qualified benefits, including IRAs, Roth IRAs and Keoghs.


Public Benefits


Labor & Employ. 8-106 - Unemployment compensation.


Labor & Employ. 9-732 - Workers' compensation.


Code of 1957 art. 24 16-103 - Baltimore police death benefits.


Crim. Proc. 11-816 - Crime victims' compensation.


Tools of Trade


11-504 - Tools, books, instruments, appliances, and clothing needed for work up to $5,000.


Insurance


Ins. 8-431 - Fraternal benefit society benefits.


Ins. 16-111 - Life insurance or annuity contract proceeds, dividends, interest, loan, cash, or surrender value if beneficiary is a dependent of the insured.


Comm. 15-601.1 - Medical benefits deducted from wages as well as medical insurance payments up to $145 per week or 75% of disposable wages.


11-504 - Disability or health benefits.


Miscellaneous


11-504 - Child support and alimony to the same extent that wages are exempt.


?

WALLSTREETESQ :

THE FOLLOWING LIST IS WHAT IS EXEMPT

WALLSTREETESQ :

She can keep all the items above.

WALLSTREETESQ :

She should stop making payments on the debt, and close her accounts, the creditors cannot collect on her.

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask,

WALLSTREETESQ :

If you are satisfied with our service please press the accept button so we can receive credit.

Customer :

Dear Sir,

Customer :

Sir, I just found out that my mother's property is in the children's name and her name. Could they put a judgment against the property?

WALLSTREETESQ :

It is possible, the deed should be transferred out of her name, ASAP, as even if she filed for bankruptcy the property would be taken, once the name is XXXXX XXXXX her name she will be judgment proof.

WALLSTREETESQ :

For a creditor to get a judgment and place a lien on the property takes several months, after a lawsuit is started so she does have time.

WALLSTREETESQ :

If you have no further questions, and are satisfied please press the accept button so we can receive credit, if you have any further questions please ask, as I am here to help.

WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15835
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you

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