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You will be filing a chapter 7?
Will the third person continue to pay the equity payments?
What is the value of the property?
i haven't been to an attorney on this matter yet so don't know which it would be. the medical bills are much too high and we would end up leaving a good deal of debt to our children when we die. we would like to continue paying him our half of the loan the property is valued at 89,000
it is acreage with a tiny cabin
the property is in my husband and his brother's name as joint equal owners
How much is the equity loan?
i don't really know since he took out more than we needed to buy the land to use for other purposes
the property in NY will be given to the bankruptcy court or will you keep it?
we hope to keep it so he is not effected by a loss due to my husband's accident
you took out an equity loan on the NY property to buy the CA property?
no. his brother took out an iquity loan on his condo in ca to buy the property in ny where WE live
what is the value of the NY property?
their is no mortgage or lien in NY?
we paid approx 45,000 for it
there is a lien due to the medical bills
What is your monthly income with your spouse?
we live in ny state
approx 9,000 including pension and SSD
You would have to file a chapter 13 bankruptcy due to your income levels,
Which is a payment plan bankruptcy,
Which in terms of keeping both properties is good,
Homestead Exemption (note: this can be doubled for married couples filing jointly, who own the real estate together)
The 2011 homestead exemption will protect all equity in your NY home,
the CA home may be an issue, depending on the fair market value of it,
but in a chapter 13, you can keep both, and reduce your medical bills significantly.
then our children would be inheriting debt probably. this is not our home. it is recreational acreage . does that make a difference?
Yes, it does,
if we owe approx 250,000 in bills what might we expect to get rid of in debt?
the fair market value is less
what are your monthly expenses?
approx 3,000 or so
so you would have $3000-$4000 in monthly income after expenses are paid and taxes?
we also have a retirement annuity that has dwindled to 77,000 but need to have this in case my husband needs care if i die first
do not touch the annuity
i don't really know. my husband spends and spends due to his brain injury and i am always waiting for the next check to make ends meet
You do qualify for a bankruptcy, but if your expenses are only $3000
you will have a remaining amount left over of $1500-$3000 per month,
and that is the amount you would pay back in your chapter 13 plan for 60 months,
If for example,
are u looking something up or calculating?
you net $5000 after taxes
and your expenses are $4000 per month
your chapter 13 plan payments would be $1000 per month for 60 months
so you would pay $60,000 for your debt
do they give any room for inflation? i feel things will double in expense through that period of time
yes, you can change your plan later if your expenses increase, and lower your payments
how easy is that to do?
especially after the changes with the bush adminastration and what is happening in the country now
it is not too bad,
do you have any children living with you?
do they allow any room for unexpected expenses? children are grown but we buy things for grandchildren to keep them clothed and shoes on their feet
do they look over bank accounts to see where money goes?
yes, when you determine your monthly expenses, you list everything you spend on,
food, gifts, car, clothing, etc.
are things taken into consideration even though the grandchildren don't live with us?
yes, if you give them gifts, or anything else that is considered,
Your expenses may end up around $4000-$5000
then your monthly payment can be $100-$500 or even less
how would i prove that i pay for many things for them without effecting them in any way financially like food stamps or something. we live in steuben county. the poorist county in the state. there are literally no decent jobs here for people
also, i am a nurse but have had to stop working to be with my husband since his injury
The bankruptcy court may ask for evidence such as checks,
in most cases, if the amounts are reasonable the trustee will not ask,
i have 7 grandkids due to twins running rampantly thru our family. we are all twins
what would be considered reasonable to a court
and would it matter that i have had to stop working due to his brain injury?
a fe hundred is reasonable,
If you quit your job, that may help you
as your income would be less,
and you can file a chapter 7, and get rid off all your debts,
with no plan
how would this effect our credit which is pretty bad now? what about effecting his brother by possibly losing that property?
this would hurt your credit, but not too much if you have bad credit already
in a chapter 13, you can keep the CA property and the brother will not be harmed
the income is without my job since i had to quit due to his accident
he makes $9000 a month?
approx, yes including pension and SSD
do they consider the SSD
SSD is not considered,
However, the law is constantly changing in this regards,
ection 707(b)(2) of the bankruptcy law (the “means test”), as well as section 1325(b)(2), exclude social security payments from consideration in a debtor’s budget in either chapter 7 or chapter 13. This means that social security benefits ought to be excluded from consideration in any consumer bankruptcy case, whether as an asset of the estate, or as income for the chapter 7 means test, or as income for funding a chapter 13 plan. It even should excluded from consideration for section 707(b)(3) motions, where the U.S. Trustee attempts to force debtors to convert to chapter 13, since the money can’t be used for creditors anyways under section 1325(b)(2).
You need to speak to a local bankruptcy attorney and go over your monthly income, and expenses in detail,
in my opinion, you may qualify for a chapter 13, payment plan, and keep all property
or you can file a chapter 7, and get rid off all your debts,
and keep the property
A chapter 7 is best, XXXXX XXXXX your income is mostly SSD, it should be possible
should i go to a city area to find someone who only deals with bankruptcy
or do i need to stay within my county
Stay in your County, but it does not really matter,
A bankruptcy attorney is needed, and in your case, an expert, as you have several issues and a large medical debt.
thank you for your time and letting me pick your brain. i like that u work for unions as my husband was a boilermaker for 34 yrs
His Union may also have a legal plan, that would help him as well,
i will talk to them...thank you very much
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