|
Date: October 13, 2009
Host: Michael D, Siegel View Transcript | Archive Index For All Legal Chats Bankruptcy is traumatic enough as it is, what with facing financial ruin and dealing with a roller coaster of emotions, without adding the mind-numbing details of the bankruptcy code to sort out. Join Michael Siegel, an attorney who deals with bankruptcy and other credit issues, on October 13th at 10 PM Eastern (9 Central, 7 Pacific), to get your bankruptcy or other consumer credit questions answered. MICHAEL SIEGEL practices in the fields of bankruptcy, consumer rights, commercial litigation
and real estate. His main office is in New York City, and he maintains an office in Jersey City,
New Jersey. Michael spent eight years representing large institutional creditors at large law firms in New York City and New Jersey. Now a partner at Siegel & Siegel, P.C., Michael represents mostly individual consumers and businesses. Michael is a graduate of the University of Chicago Law School. He is admitted to the bars of New York State and New Jersey, as well as the Federal Courts in New Jersey and the Eastern and Southern Districts of New York.
http://www.lawyers.com/siegelandsiegel Live Chat Transcript Michael D. Siegel: "Hi. I am ready to begin. Shae will be first, then steelergirl."
Michael D. Siegel: "Shae, please post your question."
shae16: "I have about 25k in credit card debt, do not own a home, have a leased car that I want to keep. I am wanting to file a Ch. 7 bankruptcy to discharge my credit card debt and start over fresh. I understand the trustee does not like charges that have been placed up to 90 days on your credit card. I have some expenditures that I can not afford. Some bills that are unexpected. I have 400 deposit on a pet deposit and 287 to get my braces switched. Should I charge these on my credit cards or I am at risk for not getting these items discharged since they will be so recent. Also, I currently am not in default for any of my credit cards. they have all been paid on time, however I am feeling backed into a corner and wanting to file bankruptcy. I keep reading that there is no reason to keep paying on my credit cards if I plan on filing bankruptcy. What is worse on my credit. To stop paying my credit cards and let them go into default and then file bankruptcy or to keep making payments and file bankruptcy. Does it look better on my credit to pay my credit cards up to the point that I file for bankruptcy?"
Michael D. Siegel: "It does not matter for your credit score if you pay the minimum up until filing for bankruptcy. Once you have determined to file, there is no reason to pay more on your cards. I am not sure what a "pet deposit" is, but medical expenses like braces are not likely to cause you problems if you charge $287 in 90 days before filing. Try to keep expenses to a minimum on credit cards. You should see a lawyer before deciding what to do. It is a major financial decision to file bankruptcy, and must be considered carefully, with someone looking at all of your data."
shae16: "I want to do that but I am hurting for money as it is and I am hoping to file pro se. may I ask one additional question"
Michael D. Siegel: "yes"
shae16: "I just moved from CA 7 1/2 months ago to TX. Which state do I have to file in. I have the nolo book and it sounds like I can file in TX because it offers both the state and the federal exemptions."
Michael D. Siegel: "You file where you have lived the last 180 days, which for you is TX."
shae16: "Ok Great! So should I let the other person go even though I have more questions. I am new to this chat option and not sure of the rules."
Michael D. Siegel: "There are no rules. However, that seems like a good idea. Steelergirl, you have the floor."
Michael D. Siegel: "Please post."
shae16: "so do i have the floor"
Michael D. Siegel: "Go ahead Shae, and ask whatever you want."
shae16: "I am currently on unemployment insurance due to being laid off. I actually got laid off in CA and the first month after I moved to TX got a job in Tx but got laid off again 3 weeks later. Is unemployment considered income as far as bankrutpcy goes and if not how does that affect how I fill out the paperwork"
Michael D. Siegel: "It is income for the means test, but it is exempt from execution by a trustee."
shae16: "meaning they can not try to take those funds? As far as my calculations even with my husband's income and my unemployment income we are still below the income limit for the means test do we even have to take the means test since we are under the limit"
Michael D. Siegel: "If you are under the mean income level, you need to fill out the first few lines in the first section, and then stop as per the directions on the form."
shae16: "my husband is active duty do we still have to do the credit counseling requirement if filing jointly"
Michael D. Siegel: "yes. you can do it online."
shae16: "ok, i think I have located a place to do that online"
shae16: "another question"
shae16: "my husband will be getting a check in Feb. of 2010 from a retirement account from a union he belonged to. do i need to include that in the bankruptcy as assets are are retirement funds exempt"
Michael D. Siegel: "This is the danger of pro se filings and internet chats for help. I do not understand this payment. Is he retired? If not, it should be rolled over to a new retirement account, to be taken when he reaches 65."
Michael D. Siegel: "If the check is large enough, there is a spot on the form for disclosing expected increases in income, like a payment like this."
shae16: "because it was a union and was not technically in a 401k they are just giving him his money that he had paid into the funds. It will be about 5k"
shae16: "our first car is leased and our second car is owned outright and worth 3k. do we fill out a form to keep the leased car and the federal exemptions should allow us to use the wildcard exemption to keep the second car correct?"
Michael D. Siegel: "If it was not a 401k it sounds like it may not be a retirement account in the sense needed for it to be exempt. This account will likely need to be declared as a present asset, and not just a payment in 5 months."
Michael D. Siegel: "Yes on the cars. You understand it."
shae16: "ah, ok."
shae16: "as for the braces. a little over a month ago I got braces put on which required a down payment of 800 and then they are having me pay 110 per mo. Will that 800 that was charged likely not be discharged and considered extravagant?"
shae16: "i got the braces because i was told that the military would help pay for them and then after getting them found out that was incorrect"
shae16: "sorry for the typos"
Michael D. Siegel: "This issue depends upon the trustee involved, and also the bank on which you charged this amount. In NY, where I practice, the $800 would likely not be a problem, but it is pushing the size limit. One factor would be how much your overall balance on that card increased as a result of this charge."
Michael D. Siegel: "Since no one is suing you, as you are presently current, you could wait the 120 days required, and still stop paying your cards now, which would eliminate this issue."
shae16: "have a 6k limit and before brace had about 1500 balance."
Michael D. Siegel: "There is no rule on this. Some banks are more aggressive than others."
shae16: "also, once I stop paying my cards I should stop all charges correct. I guess what is concerning me is that our bills are currently more than I am making especially since I am soon to loose my unemployment and have not found a job yet"
Michael D. Siegel: "Yes. If you are going to file, you should stop paying and stop charging. Your cards will be canceled once you file anyway."
shae16: "right but during the 120 days prior to filing should i also stop charging"
Michael D. Siegel: "yes"
shae16: "actually if i were to stop paying my credit cards, i would have enough money to pay my bills so it becomes an moot point"
shae16: "i think i spelled moot right. ahh"
shae16: "sorry i have a 3 year old tugging on my arm as we speak"
Michael D. Siegel: "That is fine."
shae16: "how will filing bankruptcy affect filing my year end taxes"
shae16: "I am due a tax return will they try to take that"
shae16: "also my husband is due a military sign on bonus about july of next year. will they try to take that"
Michael D. Siegel: "You are right. You should be able to pay bills once you stop paying credit cards. You cannot live in the red in that situation. Bankruptcy does not effect the amount of taxes, or your obligation to file returns. A refund might be taken by the trustee. Try to change your husbands exemptions so less money is taken out, and you do not get a refund."
Michael D. Siegel: "If you file now, your case will be over by July."
shae16: "so as long as my case is discharged any mone received after that date is not included correct"
Michael D. Siegel: "In general, right."
shae16: "i have changed his exemptions to the maximum as of a couple of months ago when we got really tight so that we could pay more of our bills so our refund at most will be only 200-300"
Michael D. Siegel: "That is not high enough to be an issue."
shae16: "also I do not have taxes being takin out of mine and i consulted my tax consultant and they said we should be in the clear"
shae16: "ok perfect. wow is this chat open for another 30 min"
Michael D. Siegel: "I will close the chat soon if no one else appears. There are a few preposted questions that I will answer first, however."
shae16: "sorry not tryin to be a live chat hog but this is helping me greatly"
shae16: "bankruptcy will not discharge student loans correct"
Michael D. Siegel: "I am glad to help. And, thank you to you and your family for serving our country."
Michael D. Siegel: "Student loans cannot be discharged, correct."
shae16: "another question"
Michael D. Siegel: "ok"
shae16: "last july my husband and i were getting a divorce and I got about 5k in credit card debt to pay the lawyer then about 3 months later I received an extra bill from him stating i owed him 3k more even though I never agreed and asked him many times if I had used up my retainer or not but he never let me know the balance and then 3 months later after i decided to work it out with my husband sent me the bill. i never responded and he never responded back should i include that in the bankruptcy even though he does not appear to be going after me for the money"
shae16: "i think he realizes that he was trying to charge me too much because i had muliple letter and emails where i had requested my current balance and he would not respond and then when he conveniently felt i was over my retainer then billed me"
Michael D. Siegel: "yes. Include anyone with a claim against you, even if you dispute it. There is a box to check for disputes."
shae16: "ok i would rather include and have it gone then risk him coming after me later"
Michael D. Siegel: "That is the way to handle it."
shae16: "another question?"
shae16: "we have very few assets except a nice couch and a laptop and camcorder. i should be able to use the federal exemptions to keep these items correct"
Michael D. Siegel: "absolutely. Used personal stuff has no real value, so you may declare a very minimal personal property exemption."
shae16: "i though so but i though i should ask"
shae16: "well thank you so much for your help. I greatly appreciate it. and thank you for your gratitude in our choice to serve our county. we pride ourselves on our service and the military is providing great medical training for my husband. hopefull we will get back on our feet soon"
shae16: "again sorry for the typos"
Michael D. Siegel: "Good luck to you. Good night."
shae16: "good night"
Michael D. Siegel: "Allen2010: "In 2004 I co-signed a $15,000.00 student loan for an ex-girlfriendâ¿¿s daughter with the daughter as primary. Both she & her daughter agreed to pay the loan back & asked me to sign for credit worthiness only. The loan was paid faithfully until Jan 09 when I told the ex I was engaged to be married in May. In June the ex sent my wife an email saying â¿¿the student loan he co-signed will be taken care of ASAP. I regret asking him to co-sign and I will rectify the situationâ¿¿ along with other foul comments I will not waste your time with. I am well aware I am legally responsible for payment. My questions are 1.Can I pursue the verbal agreement in court especially because she followed up with an email to my wife acknowledging their responsibility to pay. Or 2. Can I make payments and then sue for reimbursement. 3. Do I have to wait until I pay it in full or can I seek a judgement that covers any payments I make prior to the loan being paid in full? Finally what type of attorney should I seek and in what venue. It covers 3 states; the agreement was in one state, the school is in another state and I have now moved to another state. Thank you in advance!""
shae16: "can i print this chat"
Michael D. Siegel: "You can print it tomorrow when it is posted in the archive."
shae16: "thank you"
Michael D. Siegel: "Allen: Your suit against your ex is separate from the requirement you pay the bank on the student loan. You need a collection lawyer. While multiple states may have jurisdiction to hear the suit, you are wasting your time if you do not sue where the ex lives, since the judgment will be docketed in her state, and you can more easily collect it."
Michael D. Siegel: "Florida213: "Hello... We are in desperate need of help.. In Early 2009, My husband purchased a piece of equipment (got a notorized bill of sale of course!!) and later to his knowledge it had a lien and judgement on it. Of course, by the time he found out, it was too late and he was arrested. A detective in our city spoke to a representative of the financed copy and twisted some words. Their response was to report the item stolen. We have been researching and we can't find any cases where finance companies have the right to report items stolen. Do you have any knowledge if this is legal especailly when its a civil matter? Now it's almost October and we can't seem to get this matter to go away.. Please send some advise. Thanks for your help.""
Michael D. Siegel: "While you have no rights in the equipment, you can sue the person who sold it. Your rights can be no greater than the thief. If the seller stole the property, you cannot get title from him. The true owner will always get title. Also, finding out about the lien was your responsibility. The lien stays with the item. Thus, sue the seller."
Michael D. Siegel: "dolphin80: "i have a joint account for a car loan with a friend. i have filed for bankruptcy that account is included in my bankruptcy. Can she sue me for the amount owed on that loan that the bank is garnishing from her pay check?""
Michael D. Siegel: "No. You should have listed her as a co-debtor on schedule H, which discharges her claim for indemnification from you."
Michael D. Siegel: "jburns127: "I am filling bankruptcy, chapter 7 in the state of Florida. My only income is social security and retirement income. My question is: Will this income be considered as disposable income on the financial worksheets? Am I judgement proff?""
Michael D. Siegel: "It is income on the means test, but not attachable in a lawsuit. Thus, you can get judgments against you, but there may be no means for a judgment creditor to collect. That is the meaning of judgment proof."
Michael D. Siegel: "That brings us to the end of the hour. Back here in 2 weeks. Until that time, use the community area on the site."
|
