Possible bankruptcy

[StartinOver]

My sister is in another state and in very bad health. I expect to loose her within a year. She has had 4 strokes, now has kidney disease, and today is getting her foot cut off due ot diabetes complications.  I plan to see my house and move there.

I have an 12 ft. RV (no bathroom) that is almost 50 years old that I purchased for $500 and painted and plan to live in it. I have a late model truck that I use to pull it, but might not have it after that bankruptcy. Its a 2011 that I owe $29K on that is worth about $25K. I want to keep it, yet not reaffirm it. I am afraid I will lose it before I can even get a job, so hence, I won't be able to get a job.

I will be filing on about $60k debt, and I have an additional $40k in school loans. I was trying to get an education and support my son when I had no income, hence the loans. I have spent years trying to get on my feet and pay things off, but had so many roadblocks.

Before my sister's health problems I had planned to work 2 jobs and pay everything off. Now with having to quit me job and move, I will have no job. I am almost 59, too. There is no way I can pay off what I owe. Even the school loans will be impossible.

I was wanting to move down south where there are better job opportunities, after my sister passes away. I really need the truck. I am hoping that if my house sells, to maybe get a profit of between $10k to $20K.

I understand purchases over $600 are questionable 90 days before filing. If I am jobliess and homeless, do they take away the cash I have on hand to survive and get another truck? I have heard that in some cases the judge awards (?) you the vehicle. Is that only when you try to affirm it at FMV and the creditor doesn't agree? It is both my home and my transportation. If it is better that I live in in than my trailer, I would, if it helped any.

[StartingOver10]

I am sorry to hear of your troubles. Your sister is lucky to have you.  Remember, this too shall pass.

Filing bankruptcy is a matter of timing and other factors too. I am not an attorney. I have a couple of tips for you and some links for you to research based on your post.

There are others here that are attorney's and/or work for attorney that can answer more than I have in this post to you.

There are different rules for different states for what you can keep and what you can not keep.

You didn't mention where you are, but part of your issue will be that you are moving to another state and it will affect when you can file.

Most of the states have some exemptions for some cash, but in some places that exemption can be mighty small (I mean very, very, very small).  I am going to post a link for you to start your research so you can see what the exemptions are for your state, but if you move, then you have other issues to contend with - like a time frame where you can't file under the new state rules for X days (don't remember the number now). It will be in one of these links below.

Exemptions for each state are different. Some states allow you to use Federal Exemptions. Some don't. 

http://www.nolo.com/legal-encyclopedia/bankruptcy-exemptions-state

One of the safest places to have your money is in your retirement accounts. Don't drain those accounts before you file.

Here is a link about moving and filing BK

http://www.nolo.com/legal-encyclopedia/file-bankruptcy-now-after-moving-new-state.html

[StartinOver]

Thanks for your response. I'm having a hard time responding on mobile. 

[StartingOver10]

Which state are you located in and we can better answer your questions.

When they say $7000 exemption for your truck they mean 'equity', not payments and not loan. If you are upside down in your truck (loan is higher than the value) then you have zero equity in your truck.

Home exemptions are separate.

Bank accounts are separate.

That link I gave you gives you the specific exemptions for each state.

[StartinOver]

Ok. One piece at a time.  What is my equity amount? Loan was 32k. I owe 28k. Worth 25k. What is my equity? 

[StartinOver]

I'm trying to not give too much info. I will be using federal exemptions. 

[StartinOver]

Wild card exemption: $1225 plus $11,500 ...

Can be used towards property owned. If my truck is on a secured loan,  would this apply. .. it's not "owned", right? So I can't use it towards my truck?

Vehicle exemption is 3674.

I'm hoping someone can take all my facts and tell me how it applies to my situation.  Thanks. 

[StartingOver10]

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@StartinOver wrote:

Wild card exemption: $1225 plus $11,500 ...

Can be used towards property owned. If my truck is on a secured loan,  would this apply. .. it's not "owned", right? So I can't use it towards my truck?

Vehicle exemption is 3674.

I'm hoping someone can take all my facts and tell me how it applies to my situation.  Thanks. 

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For your vehicle only, this is the relevant info based on what you posted:  The vehicle exemption is $3674.  Right now, according to your previous post, you owe $28,000 on the vehicle loan and the value of the truck is $25,000.  So you have ZERO equity in the truck. That means you are not using any of your vehicle exemption. In the case of a Bk that puts you in good position.

You don't say what the truck make and model is and you didn't say who the lender is on your truck loan. Most of the lenders are cooperative in the Bk process and will let you do a 'ride through' in a Bk on a upside truck. In other words, you don't reaffirm but you continue to make payments and you keep the truck. Search for the term "ride through and bankruptcy" to get a handle on it.

There are a couple of vehicle lenders, especially Ford, that are NOT cooperative at all. If you want to keep the truck, they want a reaffirmation agreement signed in the Bk. This is something you want to discuss with your Bk attorney especially if your truck is financed with Ford.

[StartinOver]

Ford F-150, financed by a local credit union. I've read a lot about reaffirming and the ride through. I know that a credit union who you also owe for a credit card is likely to take the truck as soon as possible. I really would like to pay for it's value, or less. I guess that is called redemption, but you must pay all at once in full. I think the judge determines this. I just don't know how the amount is determined.

On further reading I found out:

State 1: my current state

State 2: state I'm moving to

State 2 allows you to use either their state or federal rules. If you haven't been there long enough (I think it was 180 days), then you use State 1. State 1 says you must reside in that state to use their rules. So, who's rules am I under?

[StartinOver]

In some states it matters if your truck is used for your income. My truck will be pulling my small vintage trailer that will be housing my sewing, which I use for income and will be dependent upon when I have no other income. I will have my machines, much of my fabric and my dressmaking dummies inside.