$125K in debt filing Chapt 7-Questions????

[ezdriver]

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@mnegron1969 wrote:

Dude this is new to me, I don't need u to be insulting about it!

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It really is quite simple. When you file a ch7 bankruptcy petition, it is up to the trustee to sort out your assets and liablities. Any asset(s) above your State-allowed exempted amounts would be likely sold by the trustee to pay your creditors.

Which part of this confuses you?

[lessismore2014]

ok people,  I have an unusual situation and I have many questions to ask a BK lawyer. I'm going to leave it at that.

[EW800]

I hope you will let us know what the atty's that you see advise you.  I am guessing that you would not be a candidate for BK with the two houses having so much equity, but curious what your options are.  Please let us know!

[lessismore2014]

Attorney no. 1 went and seen today and his suggestion was to transfer both my home & car to my son and wait a few years to file for bankruptcy. If I didn't have the vehicle I would have been able to get a corrective deed done transferring most of the interest of the home to my son since he is the one who paid for it waited 6-8 months then filed but adding my cars made my assets go over the allowed exception amount. As far as the cards go, he said continue paying on them a few months and then let them go into default. I don't know if I can do that. As far as my other property goes, he told me to get that sold so that is not a problem when it comes time to filing bankruptcy and if I get $8k out of the deal he can help me keep that. Appointment with attorney no. 2 is next week. He did add the lot and the price of the home together. That was over $300k. He never brought up chapter 13 I guess since I'm unemployed. I'll update when I see attorney no. 2. 

[EW800]

I have been following what you are going through.  I am very glad that you went to see an attorney, and that you are going to see a second attorney as well.  

Please let us know how it goes with the second one.  

Best wishes.

[StartingOver10]

Be very careful with the attorney you select. You may even need to interview several more attorney's. Make sure you get an attorney that does only BK and not a general practice type attorney. Also, make sure the attorney you select is knowledgeable and will be the one that attends your 341 with you if you file Bk at all.Check out the reputations of the Bk attorney to make sure they are reputable. Don't go with one of those huge "bk mill" type firms that just push people through on a conveyor belt. You get no personal attention and your file is relegated to the paralegals and the noobies.

I have to say, I am completely surprised at the suggestion of attorney #1 to transfer the RE out of your name in contemplation of filing bk down the road. Completely stunned in fact.

[TRC_WA]

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@StartingOver10 wrote:

I have to say, I am completely surprised at the suggestion of attorney #1 to transfer the RE out of your name in contemplation of filing bk down the road. Completely stunned in fact.

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Didn't someone say that falls under bankruptcy fraud?  Didn't someone say something else about how the trustee goes back years on home purchases and such?  

Risky IMHO.

[northface28]

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@lessismore2014 wrote:

Attorney no. 1 went and seen today and his suggestion was to transfer both my home & car to my son and wait a few years to file for bankruptcy. If I didn't have the vehicle I would have been able to get a corrective deed done transferring most of the interest of the home to my son since he is the one who paid for it waited 6-8 months then filed but adding my cars made my assets go over the allowed exception amount. As far as the cards go, he said continue paying on them a few months and then let them go into default. I don't know if I can do that. As far as my other property goes, he told me to get that sold so that is not a problem when it comes time to filing bankruptcy and if I get $8k out of the deal he can help me keep that. Appointment with attorney no. 2 is next week. He did add the lot and the price of the home together. That was over $300k. He never brought up chapter 13 I guess since I'm unemployed. I'll update when I see attorney no. 2. 

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Id run, not walk from that first "attorney". That is fraudulent activity and it is quite alarming this "attorney" would suggest  said methods with a straight face.

[StartingOver10]

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@TRC_WA wrote:

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@StartingOver10 wrote:

I have to say, I am completely surprised at the suggestion of attorney #1 to transfer the RE out of your name in contemplation of filing bk down the road. Completely stunned in fact.

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Didn't someone say that falls under bankruptcy fraud?  Didn't someone say something else about how the trustee goes back years on home purchases and such?  

Risky IMHO.

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^^^Yes. In my Bk the trustee checked every document going back for years. On my real estate transactions they checked back ten years. So I really don't understand attorney #1 at all.

OP, with fraud, even if you aren't aware of it, once you sign the bk petition you are signing that everything is true and correct. In the cases of fraud the bk will not discharge the debt and there are severe consequences. Do a search so you know.

[DrZoidberg]

It sounds like you want to eliminate your $125k in debt without losing anything of value or paying it. That's just not going to happen. I don't see the problem in selling your house to pay the debt and moving on.