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Chapter 7 Bankruptcy (what should I expect, assets, etc)

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Anonymous
Not applicable

Chapter 7 Bankruptcy (what should I expect, assets, etc)

Hello.

 

I'm looking to file chapter 7 bankruptcy, in the last year I've only made about $5,000+  it's so small it's well below the median income but I just started a new job last week.

It's still below the South Dakota median income of $50,000 (20,000 under).    

 

I'm also aware of South Dakota's wild card, and honestly I only own $5,000 or less in assets and it's really only a few DVD boxsets, games, old console, a custom PC (I may have spent $4,000 but would only sell for maybe $1,200 today)  My TV is only $700 (what a pawn shop would pay for it) it is Samsungs js9000 55" model which you can buy new for $1,400 today (I paid $2,500 when it came out) but I think they're just looking at what would a second hand store/pawn shop pay for it.

 

In that case here is what I'd put under the wild card.

DVDs $500

Video Games $700

Game Consoles $500

Computer $1200

TV $700

Bed/Bedding $200

Cloths $100

Books $100

Total $4000.00 Well below South Dakota's $5,000 wild card limit. 

 

I don't own much if anything and with the wild card it would be a non-asset filing from what I understand.

 

So nothing to lose really thanks to the wild card.

 

Will bankruptcy take care of a secured credit card?  I've had it for awhile and it was always in good standing, but would bankruptcy wipe this?  At the end of the day the credit card company still has the $3,000 I gave them.

 

I've ran into some hardship for awhile and have never been able to really get back on my feet and have never been able to land the job I had in my early 20s (100k/yr)... 

 

So what should I expect, should I file without an attourney (would save the $300 court fee if I ask for it), or is it best to just get an attourney to deal with this?  

 

 

 After the discharge how long should I wait to get a secured card?  I'm only going to probably put the monthly grocery bill on it  or at least 2 weeks of it anyway, so say every 2 weeks is around $200 I should probably put down $750-800 to keep it under 30%.   

 

Message 1 of 5
4 REPLIES 4
beezer32
Regular Contributor

Re: Chapter 7 Bankruptcy (what should I expect, assets, etc)


@Anonymous wrote:

Hello.

 

I'm looking to file chapter 7 bankruptcy, in the last year I've only made about $5,000+  it's so small it's well below the median income but I just started a new job last week.

It's still below the South Dakota median income of $50,000 (20,000 under).    

 

I'm also aware of South Dakota's wild card, and honestly I only own $5,000 or less in assets and it's really only a few DVD boxsets, games, old console, a custom PC (I may have spent $4,000 but would only sell for maybe $1,200 today)  My TV is only $700 (what a pawn shop would pay for it) it is Samsungs js9000 55" model which you can buy new for $1,400 today (I paid $2,500 when it came out) but I think they're just looking at what would a second hand store/pawn shop pay for it.

 

In that case here is what I'd put under the wild card.

DVDs $500

Video Games $700

Game Consoles $500

Computer $1200

TV $700

Bed/Bedding $200

Cloths $100

Books $100

Total $4000.00 Well below South Dakota's $5,000 wild card limit. 

 

I don't own much if anything and with the wild card it would be a non-asset filing from what I understand.

 

So nothing to lose really thanks to the wild card.

 

Will bankruptcy take care of a secured credit card?  I've had it for awhile and it was always in good standing, but would bankruptcy wipe this?  At the end of the day the credit card company still has the $3,000 I gave them.

 

I've ran into some hardship for awhile and have never been able to really get back on my feet and have never been able to land the job I had in my early 20s (100k/yr)... 

 

So what should I expect, should I file without an attourney (would save the $300 court fee if I ask for it), or is it best to just get an attourney to deal with this?  

 

 

 After the discharge how long should I wait to get a secured card?  I'm only going to probably put the monthly grocery bill on it  or at least 2 weeks of it anyway, so say every 2 weeks is around $200 I should probably put down $750-800 to keep it under 30%.   

 


 

We have a Wildcard amount in Ohio as well but it's usually reserved for vehicles and varies depending on if you are filing married or individually. Nonetheless, for the sake of asking, do you have a vehicle that you own outright (clear title)? I was going to suggest that if so, don't bother listing those household items as assets and reserve that Wild Card buffer for your vehicle. If you don't own a vehicle, do what you may. Personally, while the law requires you to list all assets (this IS proper) I actually left the trivial things out (toaster, toilet seat, baseball cards etc.. LOL). I just included vehicles, jewelry and cash in the bank (all under the Wildcard). I simply didn't let 'everything' I owned.

 

Regarding your secured card; All debts must be listed in your petition, inlcuding those that are in good standing. This wiil discharge your debt obligation to the creditor but you can say good-bye to the secured cash collatoral that you have installed into it. As for filing without an attorney: While it is possible and many people do it, I personally recommend you retain a attorney to petition on your behalf. This is an important process to get right from the get-go. Any error's in filing or minute discrepancies in the process are likely to get your case thrown out by the judge, as recommended by the Trustee.

 

As for waiting on a 'secured' card after DC: Wait a at least 30-60 days and then app for a Capital One card. Try the 'Card Finder Tool' and see if they pre-qualify you. Even if they don't, a good amount of folks (inlcuding myself) were approved 30-60 days post DC for Cap One cards (unsecured). Give it a shot! Also try Firestone (CFNA), get an oil change on it or something cheap and pay it off. Good rebuilder! They approved me 30 days from DC at $900 with a 584TU score.

 

Good luck! There is life after BK. =)

Message 2 of 5
Anonymous
Not applicable

Re: Chapter 7 Bankruptcy (what should I expect, assets, etc)

I have a car I'm still paying on, the car was given to me when I graduated high school.

It was a gift from my parents so I could list it, but am I on the loan?  Originally yes, but my mom went and refinanced it so I'm no longer on the loan. 

 

I can list my deposit account which has an incoming $1700 ever 2 weeks, my 401k but that would be it...   

 

Other than these household items, I really don't own anything, and I can list the car as the car was given to me but I probably have to tell them that I'm not on the loan.

 

So I should just omit all my household items and just list the car then? 

Message 3 of 5
redneck18
Contributor

Re: Chapter 7 Bankruptcy (what should I expect, assets, etc)

I think it has less to do with what names the car is financed in, and much more to do with how the car is titled. If it happens to be titled in you and your moms name, AND not OR, then you only have 50% ownership. These are the sorts of things attorneys can line out for you. Not sure about there but around here ch7 bk typically runs less than 1k.
Message 4 of 5
StartingOver10
Moderator Emerita

Re: Chapter 7 Bankruptcy (what should I expect, assets, etc)


@Anonymous wrote:

I have a car I'm still paying on, the car was given to me when I graduated high school.

It was a gift from my parents so I could list it, but am I on the loan?  Originally yes, but my mom went and refinanced it so I'm no longer on the loan. 

 

I can list my deposit account which has an incoming $1700 ever 2 weeks, my 401k but that would be it...   

 

Other than these household items, I really don't own anything, and I can list the car as the car was given to me but I probably have to tell them that I'm not on the loan.

 

So I should just omit all my household items and just list the car then? 


You have to list all of your assets (monetary and non-monetary) and all of your debt.  It isn't as easy as it sounds. Please get an attorney so that you do the right thing.  It also sounds like you may not need to file Bk at all.  How much do you owe?

 

Remember - Bk solves a debt problem and not an income problem.  You have an income problem.  

Message 5 of 5
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