VerifiedHello, thank u for ur response. This is what I was afraid of. I have no way of finding the vehicle. I've consulted with some private investigators but because she is travelling according to my ex they've said pretty much lost cause. I was thinking chapter 13 because I do have significant assets(attys didn't ask about this so don't know if it makes a difference) but don't have access to them due to being held up in investments and the banks, brokerages are not making it easy(have to go the offices, branches) to get my money because I'm 2000 miles away(plus there would be significant loss and penaties for withdrawing, this happened to my dad and he lost almost the entire principle which was sizable amount and rentals eat up alot of money for repairs, etc but I have to have the rental income or I couldn't live). I pretty much live on the interest, blogging and websites and rental income(not in my name, still in dad's which is in probate) so I was concerned about this. But the money I make doesn't come up to what is specified for a chapter 13 and this is the reason why atty said chapter 7.
Response 1: Filing Chapter 13 would not solve the problem of the missing car. If the car is missing and cannot be produced, it is highly unlikely for the lender to approve your Chapter 13 plan if the car loan is not paid in full. Also and more importantly, if you have significant assets, those assets may be in jeopardy if you file a Chapter 7 or Chapter 13. It does not matter that you do not have access to the assets and have very limited income. Before you proceed with bankruptcy, you should review the list of exemptions available to you. These are items that you are allowed to keep in bankruptcy. If you have a lot of non-exempt assets, you may consider postponing or even forget about filing for bankruptcy because if you do, you would lose the non-exempt assets.
Do significant assets make a difference in what chapter to file? Even if money is tied up. I don't own property(all still in dad's name which is in probate). Are assets based on property, money in banks and brokerages or only one of all of the above?
Response 2: All of the above. Even if the assets are still in probate, those assets are considered yours and thus assets of the bankruptcy estate. See 11 U.S.C. Section 541(a)(5)
http://doney.net/bkcode/11usc0541.htm
Section 541
(a) The commencement of a case under section 301, 302, 303 of this title creates an estate. Such estate is comprised of all the following property, wherever located and by whomever held:
(1) Except as provided in subsections (b) and (c)(2) of this section, all legal or equitable interests of the debtor in property as of the commencement of the case.
(2) All interests of the debtor and the debtor’s spouse in community property as of the commencement of the case that is--
(A) under the sole, equal, or joint management and control of the debtor; or
(B) liable for an allowable claim against the debtor, or for both an allowable claim against the debtor and an allowable claim against the debtor’s spouse, to the extent that such interest is so liable.
(3) Any interest in property that the trustee recovers under section 329(b), 363(n), 543, 550, 553, or 723 of this title.
(4) Any interest in property preserved for the benefit of or ordered transferred to the estate under section 510(c) or 551 of this title.
(5) Any interest in property that would have been property of the estate if such interest had been an interest of the debtor on the date of the filing of the petition, and that the debtor acquires or becomes entitled to acquire within 180 days after such date--
(A) by bequest, devise, or inheritance;
(B) as a result of a property settlement agreement with the debtor’s spouse, or of an interlocutory or final divorce decree; or
(C) as a beneficiary of a life insurance policy or of a death benefit plan
Can u still file a chapter 13 if ur annual income doesn't come up to what is specified? Could they try to convert it to a chapter 7 thereby possibly making the car undischargeable? I don't want to pay a couple thousand dollars and end up with car undischargeable and a judgment when my other creditors are not on my back right now. But I need to get out from under some of the car debt and avoid a judgment and have a more manageable payment plan to pay all the creditors.
Response 3: Without knowing the particulars of your case and reviewing ALL the documents in your case, I am unable to answer these questions. These are questions that you need to ask your bankruptcy Attorney.
