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Ray
Ray, Lawyer
Category: Legal
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Experience:  30 years in civil, probate, real estate, elder law
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I am as of this week going through a divorce with an income

Customer Question

I am as of this week going through a divorce with an income on $2,400/m after settlement and left with $$26,000in credit card bills. Not anticipating this divorce, I received a lump sum pension payment of $12/m in 4/16 and gave $10/m to son to buy home. What position does this put me in to file chat 7. The house has already been purchased.
Submitted: 4 months ago.
Category: Legal
Expert:  Ray replied 4 months ago.

Hi and welcome to JA. Ray here to help you tonight.

If trustee finds out about it and they likely will they could assert a claim here against the funds and interest in the sons house.Trustee has a lot of discretion here.I would try to delay filing for a few months here if you can to put some distance between the transaction and bankruptcy.This makes it less likely the trustee would seek to reclaim the monies.I mean you can wait here the creditors can get judgments, you file if you get close to wage garnishment.

This is as definite as I can be here , the divorce helps support a claim that this wasn't planned and a few more months will help here too.

I appreciate the chance to help.I wish you the best here, sorry you have had all of this happen.

Expert:  Ray replied 4 months ago.

Free forms to file Chapter 7 yourself

http://www.ilnb.uscourts.gov/forms/all-forms/LBF_chapter_7

Expert:  Ray replied 4 months ago.

More on gifts here

https://www.bklaw.com/bankruptcy-blog/2011/11/g-is-for-gifts/

I wish you the best here.Chapter 7 takes about a year start to finish.

Expert:  Ray replied 4 months ago.

Your exemptions under Chapter 7

ASSET

EXEMPTION DESCRIPTION

LAW SECTION

HOMESTEAD

Real or personal property including a farm, lot and building, condo, co-op or mobile home to $15,000; sale proceeds exempt 1 year from sale

735-5/12-901, 735-5/12-906

Homestead exemption after death or desertion of one spouse for benefit of remaining spouse and/or minor children - (Limit 7,500/7,500)

735-5/12-902

Husband and wife may double

First National Bank v Mohr 515 N.E. 2d 1356 (App. Ct. Ill. 1998)

PERSONAL PROPERTY

Bible, family pictures, schoolbooks and needed clothing

735-5/12-1001(a)

Health aids

735-5/12-1001(e)

Motor vehicle to $1,200

735-5/121001(c)

Personal injury recoveries to $7500

735-5/12-1001(g)(4)

Proceeds of sold exempt property

735-5/12-1001

Title certificate for boat over 12 feet

652-45/3A-7

Wrongful death recoveries needed for support

735-5/12-1001(h)(2)

INSURANCE

Fraternal benefit society benefits

215-5/299.1a

Health or disability benefits

735-5/12-1001(g)(3)

Homeowners' proceeds if home destroyed, to $7,500

735-5/12-907

Life insurance, annuity proceeds or cash value if beneficiary is insured's child, parent, spouse or other dependent

215-5/238

Life insurance policy if beneficiary is insured's spouse or chil

735-5/12-1001(f)

Life insurance proceeds if clause prohibits from being used to pay beneficiary's creditors

215-5/238

Life insurance proceeds needed for support

735-5/12-1001(f), (g)(3)

MISC.

Alimony, child support needed for support

735-5/12-1001(g)(4)

Property of business partnership

805-205/25

PENSIONS

Civil service employees

40-5/11-223

County employees

40-5/9-228

Disabled firefighters; widows and children fo firefighters

40-5/22-230

ERISA-qualified benefits

735-5/12-1006

Firefighters

40-5/4-135, 40-5/6-213

General assembly members

40-5/2-154

House of correction employees

40-5/19-117

Judges

40-5/18-161

Municipal employees

40-5/7-217(a), 40-5/8-224

Park employees

40-5/12-190

Police officers

40-5/3-144.1, 40-5/5-218

Public employees

735-5/12-1006

Public library employees

40-5/19-218

Sanitation district employees

40-5/13-808

State employees

40-5/14-147

State university employees

40-5/15-185

Teachers

40-5/16-190, 40-5/17-151

PUBLIC BENEFITS

Aid to aged, blind, disabled, AFDC

305-5/11-3

Crime victims' compensation

735-5/12-1001(h)(1)

Restitution payments on account of WWII relocation of Aleuts and Japanese Americans

735-5/12-1001(12)(h)(5)

Social security

735-5/12-1001(g)(1)

Unemployment compensation

735-5/12-1001(g)(1), (3)

Veterans' benefits

735-5/12-1001(g)(2)

Workers' compensation

820-305/21

Workers' occupational disease compensation

820-310/21

TOOLS OF TRADE

Implements, books and tools of trade to $750

735-5/12-1001(d)

WAGES

Minimum 85% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors

740-170/4

WILD CARD

$2,000 of any personal property

735-5/12-1001(b)

Includes wages

In re Johnson,

57 B.R. 635 (N.D. ILL 1986)

Expert:  Ray replied 4 months ago.

Thanks again if you can positive rate it is always much appreciated.

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