I am forced to file bankruptcy due to 2 lawsuits/judgements. Under Chapter 7 will I able to keep assets such as my car, horse trailer, etc. There is a current lien, will filing bankruptcy stop the lien?
State/Country relating to question: California
Hi - my name is XXXXX XXXXX X'm a Bankruptcy attorney here to assist you.1) Have you lived in California continuously for the past 2 year? If not, where have you lived for the past 2 1/2 years.2) What is the current market value of your home?3) What is the balance on the mortgage for your home?
Hi, I have lived in California for almost 4 years, Prior to that in North Carolina. I don't own a home, My employer provides housing, board, etc. I have a car loan. The only true asset I own outright is 1 horse trailer and 1 international level horse.
Thank you for your response.
1) Is the horse trailer a motor vehicle? In other words, does it have an engine, or does it have to be attached to something to pull it?
2) What is the current market value of your car?
3) What is the balance on the car loan?
4) What is the market value of your horse?
5) What, if any, is the balance of any loan for your horse?
(Sorry for all the questions.)
1) no, it has to be attached to something
Hello, the other attorney that was assisting you has decided to let someone else take over.I am a practicing bankruptcy attorney and will be taking over and assisting you today.One moment while I review the exemptions in California.
Ok, you will have a problem if you file bankruptcy in California. Your horse is not fully exempt and you could lose the horse if you filed bankruptcy.In Cali there are two sets of exemptions that you can use to protect your property.System 1 - will not help you at all as there is nothing in this system that will protect any part of your horse.System 2 - can help some what but won't fully protect your horse. This system allows for what is called a wild card that you can use to protect anything you want, such as your horse. The wild card amount is limited to the unused portion of your homestead exemption which is limited to $22,075. Therefore the MOST that you could protect would be $22,075 in value of your horse.Please let me know if you have any questions or need clarification on any part of my answer.I hope you found my answer helpful, and if so please do not forget to RATE MY ANSWER, this is the only way that I will get credit for assisting you– I receive no credit for helping you unless you actually press RATE MY ANSWER with 3 stars or more, even if you already have a subscription. There is no fee for follow up questions before or after accepting, if we continue the conversation. Thanks, HClegal
If the ownership of the horse is mostly owned by my sponsor, can the ownership of the horse be fully transferred to them and protect that asset.
You cannot transfer an asset and then file bankruptcy. All transfer must be listed and disclosed in the Statement of Financial Affairs and so the trustee could go after your sponsor.If you have something to prove that you are not the only owner of the horse then you would only have to worry about protecting your portion of the horse. For example...If you own 50% of the horse and it is worth $50,000, then you would only need to worry about protecting $25,000.
My part of the ownership is the daily upkeep and maintenance. I have a contact, which states they paid the entire portion of the horse, and a copy of a certified check to the former owner. So, If I have this I could say the horse is fully owned by them Fiscally speaking, they are the sole owners, except they do not pay the regular upkeep of the horse.
It is hard to say without knowing more of the facts and being able to see the documents in question. You MUST be 100% honest when you file bankruptcy or you can get into a lot of trouble. You are going to have a hard time explaining why an asset worth $50k is in your name only if you do not really own any part of it.At this point I would strongly urge you to consult with a local bankruptcy attorney.You can find an attorney by going to www.NACA.netMost attorney's offer free consultations.
I have filed over a thousand bankruptcy cases.
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