jlynn I am glad to hear from you, it has been a long time and we are in a mess again. hope to talk to you when I get back from lunch.
why would it be a problem that we owe family money well it would be one family member, we have an official loan with her as a co-signer but if we file she wants to pay it off and us just pay her, and the other is a friend that lent us money awhile ago that we pay monthly. I will make sure to let them know, but why would that alarm the trustee? We can not qualify for a consolidation loan, thought of that so that is why we went to BK. Do most people agree though that a 7 is better then a 13? I am starting to think so. We might have to throw in the house anyway, does anyone have a clue on how the forclosure process goes, as in how do they sell it to get money out of it, just an auction, or will they try and sell it for what it is worth? Any info on foreclosures would be helpful. Thanks
Unfortunately it is the law in BK Court that no creditor receive preferential payments...this applies to family members, friends, etc. Their loans must be disclosed to the trustee, and they must stand in line with every other creditor to get paid. This may mean that they get paid less than they are owed. That is the risk they took when lending you money. The same holds true for any payments you made 90 days prior to declaring BK. The trustee will look over everything, and may force creditors to give back the payments, if they are deemed to be preferential. Failure to disclose any of this to the court will likely result in the BK being dismissed,. Then, not only will you still owe everyone, but the record of your bankruptcy will be reported on your CR, whether or not it is discharged or dismissed!
Its not a problem that you owe them money, its a problem if you make a large disbursement/payment to one creditor. Ex - all your creditors will probably want a piece of the IRS refund pie. I believe you must report the family as creditors, what you do outside of the BK is up to you. It might be complicated, and mine is a rudimentary explanation. You need to definitely bring it up to your attorney. Do not exclude them from the list by not telling anybody. Foreclosure - Aren't you in TX?
yeah I am in texas, but we really can't afford the home even if we file with all of our other bills, utilities, vehicles, childcare and our budgeted items, food, dry cleaning, vehicle insurance etc, also we have a furniature loan they won't include cause secured, but also in the budget are the 2 payments to the friend and family member, each 100 a month, what happens if she pays off the loan, we are still liable to her and we still have to tell the attny? Just to be safe, I do not want to ruin a friendship over this either, I would not want that to be included in the BK to where she is paid less. Any other suggestions? Sounds odd that we don't make enough money we bring in about 3500 a month that includes our housing allowance but with the home puts us over what we can afford...I wish we were never in this situation in the first place but what can we do now but to learn from it. Unfortunately
jlynn when you talk refund pie, are you talking income tax return or if we file a 13, the repayment money? If we file 7 there is no money except if they garnish our tax refund....right? I guess I am unclear
I would definitely list the family members on the creditor matrix. If your plan is to file a Chapter 7, I would not pay them anything unusual immediately before filing or between the time of filing and discharge. What you do with your exempt money after discharge is up to you.
So I still could make the normal 100 payment until after discharge? How long until discharge? I will definitley tell them, just like our expendable income the attny said it would be able to go up after our meeting which is about 60 days from filing, I didn't want to never be able to have more expendable income that might sound silly though. I am checking on the taxes right now, if they will take them or not.
Re: Re: BK 13 versus 7 You really can't dictate the terms in BK. You are literally turning over financial management of your life to the trustee once you declare bankruptcy. The loans would have to be included in the BK, and, if you can afford it, possibly you can still make the 100$ payments each month. You would "re-affirm" the debt to you friend which means that although legally your are no longer responsible to pay , you choose to repay
Re: Re: BK 13 versus 7 So you guys probably think I am nuts for wanting to file, being in TX and wanting to get rid of our home, only having 16K in debt I guess I am just tired of worrying about finances and want to start over ya know. Well my attny appointment is the 11th so hopefully i can do more research before then.
Re: Re: BK 13 versus 7 You are not nuts for trying to resolve your financial burdens. BK may well be the option for you. That is why it is there - to give people a fresh start. It's very important to be up front and totally honest with everyone - your attorney and the trustee. Your attorney is there to help you deal with the situation in your best interest, but he must know all the facts. Everything can be dealt with. Doing things right beforehand will prevent problems in the future. You are right to ask questions here. Hopefully you got some answers. Your attorney will be able to give you the best answers based on your situation. Good luck!
Re: Re: BK 13 versus 7 thanks for the encouragement creditnet has always been a help to me with their advice and info. Hopefully I can make the right decision and start on the right track.
