what do i do

trapper30 · 07-31-2008, 08:21 PM

i live in wv and im currently $42000 in debt from credit cards and unsecured loans, well we have fell in a hole and cant get back out. im selling a house to my sister on a land contract cant file bankruptcy or she will lose her house. house only under contract for 3 years so far with 5 more to go. cant file chapt 7 anyway because of income about 74,000 a year. no equity in new house yet, so0 cant borrow money to pay these off,credit consumers need $1402 monthly to make payments, I spoke to someone who talked to a guy and he said i might have to sit on it , and try to get violations from them, and so forth what u think? help please! stomach staying upset, nervous dont know what to do? afraid of losing what i have, of course everything i have has a payment

Enigma · 07-31-2008, 10:11 PM

In my personal opinion Chapter 7 is not an option. However, Chapter 13 is viable.

You need to find a well informed Chapter 13 expert. With $42k in debt you can expect lawsuits.

Even with $74k in income, are you insolvent? That is, are your monthly expenditures greater than your monthly income?

trapper30 · 08-03-2008, 11:47 AM

yeps were insolvent, wife got us in a jam, chapt13 im afraid could possibly lose my sisters house

hannah · 08-03-2008, 12:04 PM

Quote:

Originally Posted by trapper30

yeps were insolvent, wife got us in a jam, chapt13 im afraid could possibly lose my sisters house

Most BK attorneys have a free consultation. I suggest you make an appointment to discuss your options. It could very well be that you can keep the property. Chapter 13 is not the same as Chapter 7 in that generally, Chapter 13 is preferred by debtors who have a valuable asset, such as that property, that is not completely covered by exemptions and that they wish to keep. This is possible because under Chapter 13 as a debtor proposes a plan to repay creditors over a three to five year period during which the debtor can make up overdue payments on any assets and pay into the plan the equivalent value of any assets not covered by exemptions. Since the debtors plan will require regular monthly or bi-weekly payments, Chapter 13 is usually only appropriate for an individual debtor who has a regular source of income. Perhaps your sister can purchase the property outright with her own loan through a financial institution and you can use the $$ to pay your debts. You need to discuss your options with a BK attorney and then lay out the options you have with your sister. If you get a lot of judgments against you, the property is going to probably be liened or forced to be sold so she may lose it anyway.

trapper30 · 08-03-2008, 05:47 PM

honestly she may sell it shortly, then id have about 13,ooo to pay on my debts, but hate to tell her about my problems,she may try to say thats why she moved. id like her to sell it shortly and then we could work everything out. how long does it normally take before judgementsn start? to get a judgement you go to court right? is the court local? after filing chapt 13 are payments alot cheaper? are u allowed to have a debt like an atv when filing chapt13, not an asset still owe alot on it. also anyone reccomend a lawyer for chap13 in charleston wv?

trapper30 · 08-03-2008, 05:53 PM

we are paying payments on personal loans, but cant make payments on credit cards. is it a wiser choice to pay personal loans first, who is more apt to get a judgement on u? alot of them are under 1000 is there less chance for judgement on these?

Enigma · 08-03-2008, 06:29 PM

Quote:

Originally Posted by trapper30

honestly she may sell it shortly, then id have about 13,ooo to pay on my debts, but hate to tell her about my problems,she may try to say thats why she moved. id like her to sell it shortly and then we could work everything out. how long does it normally take before judgementsn start? to get a judgement you go to court right? is the court local? after filing chapt 13 are payments alot cheaper? are u allowed to have a debt like an atv when filing chapt13, not an asset still owe alot on it. also anyone reccomend a lawyer for chap13 in charleston wv?

What you are doing now is called Preferential Payments. You need to consult with a BK attorney. If you file Chapt. 13 and later sell the house, you may be able to convert to a Chapt. 7, commonly called a Chapter 20.

You will only be able to keep what your state allows, which will either be Federal or State exemptions. However, I really do not think the Trustee will allow you yo keep an ATV.

trapper30 · 08-03-2008, 10:36 PM

well just more dilemas i already talked to the one lawyer who told me my sister would lose her house that she has to be under contract for at least 4 years or she would lose it, i said its only been 3 and he recommended for me to try and makle it 1 more year then file. can i still file after i get judgments on me? i let my wife get these loans and cards, she makes more money than me and she would pay for them. i dont see how she thought she could, i didnt realize are troubles until it was to late. she has about 4500 in 401k that she can get in a hardship, like forclosure of home should i try to get it? do i just let payments on house go behind and get it and pay bills, and make house payments back up with it?

hannah · 08-03-2008, 11:12 PM

Quote:

Originally Posted by trapper30

well just more dilemas i already talked to the one lawyer who told me my sister would lose her house that she has to be under contract for at least 4 years or she would lose it, i said its only been 3 and he recommended for me to try and makle it 1 more year then file. can i still file after i get judgments on me? i let my wife get these loans and cards, she makes more money than me and she would pay for them. i dont see how she thought she could, i didnt realize are troubles until it was to late. she has about 4500 in 401k that she can get in a hardship, like forclosure of home should i try to get it? do i just let payments on house go behind and get it and pay bills, and make house payments back up with it?

Yes, you can file with judgments BUT if any judgment is converted to a lien on the property you are selling to your sister but still legally own, the title is not clear until the lien is paid and cleared. Do you understand? If you receive numerous judgments, a judge could order you to sell your assets to pay your creditors and/or can order assets seized. In WV, that's called a Sheriff's Sale but actually is an "execution'' which is a common tool used to enforce all types of court judgments and orders. The creditor asks the court for a "writ of execution" which upon granting directs the local sheriff to seize and sell specified property of the debtor. That property is then sold by the sheriff (''Sheriff's Sale'') at auction, and the money from the sale is given to the creditor to pay off the judgment. Monies over and above the amount due the creditor minus the amount due the Sheriff for his services are given to the debtor if any. The property you are selling your sister would not be exempt and if your assets sold were not enough to cover the judgment, a creditor can also seek to enforce the deficiency balance upon other assets.

In addition, a creditor can garnish your wages and your tax refunds and in certain circumstances, take that money in your wife's 401k.