Ch 7 Filers’ 7 Questions

1. May I keep my car? Yes. If you own it free and clear you must fit it into an exemption. If you owe money, you must keep up the payments. You will have to file a reaffirmation agreement that reflects its value.

2. May I keep my tools? Yes. If you own them free and clear you must fit them into an exemption. If you owe money, you must keep up the payments. Typically, a reaffirmation of debt on tools is disfavored. I am batting 1000 on saving tools. We succeeded because we demonstrated that the tools provided essential income for the family.

3. May I keep my house? Yes. If you own it free and clear you must fit its value into an exemption. If you owe money, you must keep up the payments. You will have to file a reaffirmation agreement that reflects the value. Exemption on a stick-built home is $100,000. I have not yet seen a situation in which a mobile home was not exempt about. Said the other way, every mobile home of every client has been exempted. You will likely have to file a reaffirmation agreement.

My clients and I work together and vigorously to make sure that your home’s value fits into the exemptions allowed.

4. I owe IRS taxes. May I discharge them? It depends. You must have filed the taxes and they must be at least three years old.

5. I owed child support. May it be discharged? No.

6. I owe spousal support. May it be discharged or reduced? In some circumstances.

7. I might be in line for a gift or an inheritance. What should I do? If the death of the grantor/testator is immanent, suggests that a generation-skipping devise be utilized.