I am considering filing for a chapter 7 bankruptcy (in Florida) and had some questions that I hope someone could answer:

1) My father has cosigned a car loan with me. I intend on reaffirming this debt. Would he find out about my bankruptcy? And would my bankruptcy affect his credit in any way?

2) I understand that in a chapter 7 you are allowed certain exemptions for personal property. How are these items valuated? For examle I recently had to replace a dying dishwaser so obviously the one I have is brand new. Would this be deemed as being worth $500 (which is about what I paid)? That would eat up a fair sized chunk of my 'exemption money'. Same question for my dining room set. My wife purchased it a number of years ago and even though it's older it's a rather nice set which we would prefer not to lose. One might say that you could get $1000 for it if you put an add in the paper, but then you could just as easily say that it might bring a few hundred in an aution... In order to get a better idea of what I might be able to keep how do I estimate the value for these items?

3) I have a 401k through my employer with around $8000 in it. Is this exempt? I did not see it listed in the Florida exemptions.

4) I read somewhere on the internet that unless your expenses exceeded your income you might not be granted a discharge of your chapter 7 or that it might get converted to a chapter 13. While technically yes I make enough to cover all of my debts and everything is mostly paid current there doesn't seem to be any light at the end of the tunnel. I have tried for years to make headway only to find myself deeper in the hole. With creditors raising my interest rates to ungodly figures, late fees, over limit fees, etc. I don't see that I will ever get out of debt. If I am going to only get converted to a chapter 13 I'd rather keep trying to work things out on my own I think (maybe one of these debt reduction services... any comments on that?).

5) How much is the home equity exemption in Florida? I read that is was $15000. Is that per person? The last time I had an appraisal my house was valued at around $82000 but based on what other houses are selling for in the area I think it may be worth more like $125000. How will my equity be determined? Will the trustee do an appraisal? I owe $97500 on the house, assuming that I do have $30000 or so in equity would I be able to exempt all of it between my wife and I?

--
DAVID

Hi all,

There are several things that I am unsure of and seek some advice before
consulting/hiring a local attorney.

Are IRAs (both mine and my spouses, if we file bk jointly) treated the same
as 401ks and are exempt as assets in a bk filing? (I am seriously
considering rolling over my 401k to one of my IRAs since I no longer am
employed by that employer.)

Is SS disability income treated the same as ordinary income for the
budgetary calculations for chapter 7 bk?

Is retirement income (from a previous employer) considered as income for
budgetary calculations for chapter 7 bk?

If the home mortagage is up to date, along with a second mortgage, must it
be reaffirmed or just not included in the bk if we want to keep the home,
equity in the home is negative 6k. Are these payments used in budgetry
calculations?

If there are assets that are paid for but may send us over the personal
expemtions in Tennessee (4k each for me and my spouse) can cash value for
these items be given to the trustee to keep them by a third party (ie:
daughter).

I know this is quite a few questions but hope that someone can help. I have
been following this forum for a while and have learned a tremendous amount
of knowledge and understanding, if there is any one thing that I definately
learned it is not to attempt this without a knowledgable attorney.

Thanks in advance for any advice,

Art

"Brett Weiss" <lawyer@erols.com> wrote in message
news:_qCcnZGMi8AEoNyiXTWJjA@comcast.com... David: 1) My father has cosigned a car loan with me. I intend on reaffirming this debt. Would he find out about my bankruptcy? And would my bankruptcy affect his credit in any way? In most cases, it is not necessary (and the Court will not allow you) to reaffirm a secured debt if payments are current. Your father is likely to find out about your filing, since he must be listed as a co-obligor on the loan, but so long as payments are current, his credit should not be affected. 2) I understand that in a chapter 7 you are allowed certain exemptions for personal property. How are these items valuated? For examle I recently had to replace a dying dishwaser so obviously the one I have is brand new. Would this be deemed as being worth $500 (which is about what I paid)? That would eat up a fair sized chunk of my 'exemption money'. Same question for my dining room set. My wife purchased it a number of years ago and even though it's older it's a rather nice set which we would prefer not to lose. One might say that you could get $1000 for it if you put an add in the paper, but then you could just as easily say that it might bring a few hundred in an aution... In order to get a better idea of what I might be able to keep how do I estimate the value for these items? In most cases, you will value assets at fire sale/auction prices. Speak with your attorney to find out how your local trustees handle valuation issues. 3) I have a 401k through my employer with around $8000 in it. Is this exempt? I did not see it listed in the Florida exemptions. Yes. 4) I read somewhere on the internet that unless your expenses exceeded your income you might not be granted a discharge of your chapter 7 or that it might get converted to a chapter 13. While technically yes I make enough to cover all of my debts and everything is mostly paid current there doesn't seem to be any light at the end of the tunnel. I have tried for years to make headway only to find myself deeper in the hole. With creditors raising my interest rates to ungodly figures, late fees, over limit fees, etc. I don't see that I will ever get out of debt. If I am going to only get converted to a chapter 13 I'd rather keep trying to work things out on my own I think (maybe one of these debt reduction services... any comments on that?). The answer depends on the details of your case. Again, your attorney should be able to review your case and let you know if he/she feels there will be any problem with your filing a Chapter 7. 5) How much is the home equity exemption in Florida? I read that is was $15000. Is that per person? The last time I had an appraisal my house was valued at around $82000 but based on what other houses are selling for in the area I think it may be worth more like $125000. How will my equity be determined? Will the trustee do an appraisal? I owe $97500 on the house, assuming that I do have $30000 or so in equity would I be able to exempt all of it between my wife and I? My understanding (although I don't practice in Florida) is that Florida is one of the states that has an unlimited homestead exemption. Again, these are issues that you need to address with your attorney. -- Brett ************************************************** *************** * Personal Injury/Malpractice Bankruptcy * * * * BRETT WEISS, P.C. * * Attorneys at Law * * Maryland, D.C. and Federal Bars * * lawyer@erols.com * * http://www.erols.com/lawyer * * * * Small Business Estates & Estate Planning * ************************************************** *************** The Small Print: This response is for discussion purposes only. It isn't meant to be legal advice and you shouldn't treat it as such. If you want legal advice, speak with a local lawyer familiar with your state's laws who can review *all* of the facts and the law applicable to your situation. ************************************************** ***************

Art:
Are IRAs (both mine and my spouses, if we file bk jointly)
treated the same as 401ks and are exempt as assets in a bk filing? (I am
seriously considering rolling over my 401k to one of my IRAs since I no
longer am employed by that employer.)

Yes.
Is SS disability income treated the same as ordinary income for
the budgetary calculations for chapter 7 bk?

Yes.
Is retirement income (from a previous employer) considered as
income for budgetary calculations for chapter 7 bk?

Yes.
If the home mortagage is up to date, along with a second
mortgage, must it be reaffirmed or just not included in the bk if we want to keep
the home, equity in the home is negative 6k. Are these payments used in
budgetry calculations?

*All* debt must be included. Most states allow you to continue
making payments without having to reaffirm. These payments are
included in your budget.
If there are assets that are paid for but may send us over the
personal expemtions in Tennessee (4k each for me and my spouse) can cash
value for these items be given to the trustee to keep them by a third
party (ie: daughter).

Usually, yes.

--
Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@erols.com *
* http://www.erols.com/lawyer *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the facts
and the law applicable to your situation.
************************************************** ***************

Thanks Brett,

I thought that was the answers but feel much better after reading your
thoughts. I am currently gathering information to take with me to an
attorney and shall ask the same questions of him/her. I think that
sometimes it is essential to have a good idea of the correct answers before
asking the questions 8-).

I shall keep reading and keep the forum advised of my situation as it
applies to someone else's situation similair to mine.

Thanks again,

Art
"Brett Weiss" <lawyer@erols.com> wrote in message
news:yIydnSbbvsFwFdyiXTWJjQ@comcast.com... Art: Are IRAs (both mine and my spouses, if we file bk jointly) treated the same as 401ks and are exempt as assets in a bk filing? (I am seriously considering rolling over my 401k to one of my IRAs since I no longer am employed by that employer.) Yes. Is SS disability income treated the same as ordinary income for the budgetary calculations for chapter 7 bk? Yes. Is retirement income (from a previous employer) considered as income for budgetary calculations for chapter 7 bk? Yes. If the home mortagage is up to date, along with a second mortgage, must it be reaffirmed or just not included in the bk if we want to keep the home, equity in the home is negative 6k. Are these payments used in budgetry calculations? *All* debt must be included. Most states allow you to continue making payments without having to reaffirm. These payments are included in your budget. If there are assets that are paid for but may send us over the personal expemtions in Tennessee (4k each for me and my spouse) can cash value for these items be given to the trustee to keep them by a third party (ie: daughter). Usually, yes. -- Brett ************************************************** *************** * Personal Injury/Malpractice Bankruptcy * * * * BRETT WEISS, P.C. * * Attorneys at Law * * Maryland, D.C. and Federal Bars * * lawyer@erols.com * * http://www.erols.com/lawyer * * * * Small Business Estates & Estate Planning * ************************************************** *************** The Small Print: This response is for discussion purposes only. It isn't meant to be legal advice and you shouldn't treat it as such. If you want legal advice, speak with a local lawyer familiar with your state's laws who can review *all* of the facts and the law applicable to your situation. ************************************************** ***************

On Mon, 18 Aug 2003 15:35:41 -0400, "David Johnson"
<david-johnson@comcast.net> wrote:

Adding to what Brett has adready stated...
2) I understand that in a chapter 7 you are allowed certain exemptionsfor personal property. How are these items valuated?

If I remember correctly, my attorney told me to value items as if they
were the remainders left over from a garage sale on the last hour of
the last day. I used 10% of purchase price if item can be found in
stores, internet, or ebay. Value was further decreased with age,
function, recalls, obsolesence, and/or because I felt like it can't
possibly be worth that much.
For examle I recently had to replace a dying dishwaser so obviouslythe one I have is brand new.

Hope it was a cash sale.
Would this be deemed as being worth $500 (which is about what I paid)?That would eat up a fair sized chunk of my 'exemption money'.

Actually, you might be able to get away with considering it
'built-in'. I think I remember something about 'built-in' items not
being included in assests (since they belong to the property). Is
Brett still around...?
Same question for my dining room set. My wife purchased it a numberof years ago and even though it's older it's a rather nice set whichwe would prefer not to lose. One might say that you could get $1000for it if you put an add in the paper, but then you could just aseasily say that it might bring a few hundred in an aution...

If you might get a few hundred in auction, then put down a few hundred
on your assest list. Maybe try this - create an account on ebay and
pretend to auction the set, include photos and usual info, pull set
before auction is complete or cancel on buyer, maybe subtract 25% and
write that figure. Chances are nobody will ever check on it unless the
figure is too far out of ordinary.
In order to get a better idea of what I might be able to keep how do Iestimate the value for these items?

Guess, use a fraction of what it would cost in stores, ask someone in
the wholesale trade (to stores) for unofficial quote, show a picture
to a stranger on the street and ask them how much they would pay you,
have a garage sale and take offers then decide not to sell, have an
ebay auction then decide not to sell (abandon the account after that
as you will have bad ebay cred). The methods of valuation are endless,
but always remember that your lawyer can alway argue with the trustee
until the trustee comes around (or you abandon the item).

-- Styro

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