Finally filing Chapter 7.
Date: Sat, 01/26/2013 - 09:41
Hey guys, it has been a while since I have been on here. Life kind of took over and now life has hit the skids. So to make a long story short, My family was also hit by the bad economy. We had our debt managed and getting our credit score up there. Then I got laidoff, my wife was laidoff she has been able to find something. I haven't been able to yet. We fell behind on our auto loans, bills, and rent. We moved into a smaller place with a lower rent and lower utility bills. We have a judgment for past rent, we have been only 30 days behind on one of the cars (it is also co-signed with the mother-in-law, which is why we have been paying that one first.) The other car has a repo order out on it and has been charged off by the finance company. The Repo Company threatened my brother 10 days ago the they have a replevin order for my car and they will go to the sheriff and charge me with a class 3 felony for with-holding collateral (even though they have NEVER contacted me about getting the car).
So the wife and I have been tossing the idea of bankruptcy for the past 9 months. We have decided to do it as we have no other choice now. We need the new start and are filing chapter 7. We cannot afford an attorney and are going to be doing this on our own. We have filled out all of the forms and are filing on Tuesday the 29th. We do NOT have anything of value. Most of the valuable items we have had to sell to keep up with the bills. We have printed all 3 of our credit reports so that we make sure we have every account out there.
Now for a couple questions.
1. Car with mother-in-law co-signer: Can we just turn this car over to her (signing a quit claim deed) so that our filing does not affect her?
2. 2nd car (only car worth $6200.00) In the state of Illinois we are allowed to double our Exemptions. So does this me that we can use a $4800.00 Motor Vehicle Exemption and use the unused portion of the $4,000 ($8000.00 doubled) wildcard to cover the rest, which would allow us to keep the 2nd car (which would end up being our ONLY car)?
So the wife and I have been tossing the idea of bankruptcy for the past 9 months. We have decided to do it as we have no other choice now. We need the new start and are filing chapter 7. We cannot afford an attorney and are going to be doing this on our own. We have filled out all of the forms and are filing on Tuesday the 29th. We do NOT have anything of value. Most of the valuable items we have had to sell to keep up with the bills. We have printed all 3 of our credit reports so that we make sure we have every account out there.
Now for a couple questions.
1. Car with mother-in-law co-signer: Can we just turn this car over to her (signing a quit claim deed) so that our filing does not affect her?
2. 2nd car (only car worth $6200.00) In the state of Illinois we are allowed to double our Exemptions. So does this me that we can use a $4800.00 Motor Vehicle Exemption and use the unused portion of the $4,000 ($8000.00 doubled) wildcard to cover the rest, which would allow us to keep the 2nd car (which would end up being our ONLY car)?
1. Car with mother-in-law co
1. Car with mother-in-law co-signer: Can we just turn this car over to her (signing a quit claim deed) so that our filing does not affect her?
No. There is no such thing as a quit claim for a vehicle. Title cannot be changed until the lien is released or the creditor agrees to the change. The filing of bk may show up on her CR (not sure) since the debt will be IIB. However, if you are going to “protect her” you will most likely want to reaffirm the debt and continue to make the loan payments. Your bk will not protect the cosigner so if payments are not made the lender will attempt to collect from mom.
2. does this me that we can use a $4800.00 Motor Vehicle Exemption and use the unused portion of the $4,000 ($8000.00 doubled) wildcard to cover the rest, which would allow us to keep the 2nd car.
You need to consult with a local attny.
Des.
