Bankruptcy and Collector Cars
My question involves bankruptcy in the state of: ohio
My Husband and I are looking for ways to save our house from foreclosure and to get a fresh start and was thinking about filing bankruptcy. We have not yet contacted an attourney to discuss anything...as of yet. We are behind on our house and want to keep it but the loan company is refusing to help other than make payments that niether one of us can afford. which is the reason we got behind in the first place. We own all our cars...but i am worried that they will want to take our collector cars (3) that we have had for 20 years. I am not willing to give them up. I want to keep my house and the cars that we have. but I am afraid to file, only to get them taken away to pay for the house and our past credit card debts. One is very valuable..around 30,000. the others are in the park of 10,000. I need some help of any kind. Also what other property would we have to give up? We have no money in anything and do own quite a bit of antiques. any help would be great.Please..and thanks for your time
Re: Bankruptcy and Collector Cars
In all honesty, what's more important - keeping your home or keeping your collection of antique cars? Please be realistic! A fresh start is going to require you and your husband to make some significant concessions here!
Either way, chances are you will lose the "collectors" cars. Bankruptcy court will most likely have you sell them off (as they are not exempt property) to pay the creditors. If you don't sell them and don't file for bankruptcy, the bank will foreclose, sell the home at auction, then sue you and obtain a deficiency judgement for any remaining balance of your mortgage. They can, and will, then confiscate property (the cars first then the antiques; anything of value that can be secured immediately and sold quickly). Then comes the leins on bank accounts, taking of any tax refunds, garnishing wages, etc.; all until what you owe is paid. THEY WANT THEIR MONEY (and will take any and all steps to get it)
Let's not mention the extreme hit you'll take on your credit scores. Talk to a bankruptcy attorney!
Re: Bankruptcy and Collector Cars
These are the major bankruptcy exemptions in Ohio. Please check with a bankruptcy attorney for full exemption list & they can also answer any other questions you might have.
Homestead $5,000
Four hundred dollars ($400.00) in cash $400
If claiming homestead, household goods and furnishings maximum of $200 each, total = $1,500;
If not claiming homestead, household goods and furnishings maximum of $200 each, total = $2,000
Jewelery, if claiming homestead, $1,500;
Jewelery, if not claiming homestead, $2,000
Wild card, personal property $400
Motor vehicle $1,000
Tools of trade $750
Re: Bankruptcy and Collector Cars
As was discussed here only yesterday,
Quote:
Quoting
Mr. Knowitall
In Chapter 13, the value of your assets above the exemption are considered in relation to the amount of your repayment plan. The payments received by your creditors must be at least as much as they would have received under Chapter 7, but your assets aren't sold off - your payments may be larger than they would have been had your estate been less valuable.
The catch is, if you have so many assets that you're payment plan ends up being in the vicinity of 100%, you have to figure out if you can afford the plan or if you'll get enough benefit from its structure to justify going through bankruptcy.
Re: Bankruptcy and Collector Cars
Quote:
I am not willing to give them up. I want to keep my house and the cars that we have.
You may not be willing to give them up but unless you come into some kind of windfall of cash, it's likely to happen. Your also better off selling them yourself outright than getting them taken from you. I'm with Uncle Mikey on this one, being realistic, whats more important, your house or these antiques?
Despirate times call for despirate measures.
Your other option is of course to try and sell the house and hopefully you get what you owe on it.