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Brent Blanchard
Brent Blanchard, Bankruptcy Attorney
Category: Bankruptcy Law
Satisfied Customers: 1975
Experience:  Twelve years experience in all aspects of debtor & creditor BK.
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I am looking at filing for bankruptcy but have a couple of

Resolved Question:

I am looking at filing for bankruptcy but have a couple of questions. I will be getting money through a quadro from my divorce settlement. Does this affect me filing for bankruptcy and also I own 3 vehicles clear. Will I lose them if I file? Should I add someone's name to the titles prior to filing?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Brent Blanchard replied 8 years ago.
Thank you for your question,Customer First of all, Chapter 7 BK is available only if your annual income is less than $43,036 if you are a single wage-earner in the household. This is calculated from actual paystubs from the six months previous to filing.

Pennsylvania allows debtors to choose between the default (and usually skimpy) federal bankruptcy exemptions and PA's state law scheme. Which one to choose is generally a matter of which one favors your mix of assets best. The rule is also all one-way: no mixing of federal and state exemptions, you must choose one and stick with it.

Next, the QDRO settlement should be "qualified" retirement funds, rolled over into an IRA or other similarly-protected tax qualified retirement plan. In PA, your BK exemption for those types of funds is limited to $15,000 per year that deposits were made (PA). The Trustee can take ONLY what exceeds that amount to pay your creditors.

For cars, the PA BK exemption is one car, for a value of only $2,775 per person in equity in your vehicles. If there is any unused "wild card" Pennsylvania bankruptcy exemption remains unused, that can be applied to exempt an additional $9,650 of vehicle value (state). The federal exemption for a vehicle is $3,225 (fed).

The federal list also includes $475 per item in any household goods up to a total of $9,850, and the ability to use any UN-used federal homestead exemption up to $10,125 may be applied to any property not otherwise exempted. PA does not really have its own homestead exemption.

Unless the value of each of the other two cars is so low that the Trustee decided to "abandon" them back to the BK estate, it is likely that they would be taken and sold at auction to pay your creditors.

That's part of what gets traded off in exchange for getting a discharge of your debts.

Thank you.

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