Well I hope this is not considered off topic, if it is I'm sorry. I can't start to explain to how really stressed out I am, Long story sorta sort, the Ford dealer I worked for, for over 17 years went bankrupt in 2008 and I was unemployed for over 2 years and supporting 3, Credit Cards got sorta high, Got a new job in the wafer industry but after 2 years with as many as 84hrs per week I was still considered a temp employee with ZERO benefits. Had stroke 3 months ago, hospital kept telling me not to worry about not having any health insurance, they have programs for that, ha ha ha ,what a joke ! there idea of a covering that is giving you a 10% discount sending you a bill for $60,000 and make sure you pay that in the next 10 days. Enter chapter 7 bankruptcy, asset liquidation oh joy, I'm freaked out I well lose my 55 chevy I have owned since I was 13 and my edsel I have worked my ass to the bone on for 7 years all over no benefits. My lawyers says I wont but what I read is in washington we only have an $3,250 exemption for only 1 car, anything over that they well take and auction off then give me the $3,250. Damn I have to quit, Im at work and I have 2 machine's alarming on me. Have any off you been through this? and did they take basket cases as well as running cars? thanks. Cal
Edsel.. I don't think the hospital can force you to pay the bill in 10 days. Was in a similar situation and made monthly payments to the hospital. My attorney told me that as long as I made an honest effort to pay, on a bi-weekly or monthly time frame,they couldn't screw with me. Took a few years to pay it off, but I did. You can also check into the Hill-Burton Act for possible help.
Sorry I don't have any legal answers for you but maybe a suggestion. Before you initiate the process, why not find a relative or really close friend to sell the cars to (cheap) temporarily on the promise that they will sell them back to you later on after the restructure? Maybe that will show up as you not owning them to the system?
Does your attorney specialize in bankruptcies? If so listen to him. The bankruptcy laws in all 50 states are different and any advice you get on this board is absolutely worthless unless it comes from a practicing attorney in your state. Do what your attorney tells you to do and don't sweat the small stuff. Worrying about your cars is just adding to the stress you are already under. Stress can flatten a healthy man let alone one that's getting over a hospital stay. There will be more cars once you get thru this.
You can pay the hospital bill in monthly payments. Mellow out and call around for alternatives to your situation.
56don,has it.I have heard of guys doing this to avoid there x wives taking them aswell.it works.I met a guy that dissasembled hit prize winning roadster and let it rot in his back yard to keep from loosing it.Perform the sale or gift to a friend before you start any legal evaluation.good luck.
60,000 is a heluva bill to pay in a "few years". That's like a mortgage on the less desirable side of town.
I think what the OP is saying the hospital has "programs" for situations like this ... when in fact what they do is call you on the phone and say "We will knock ten grand off your bill if you pay it up today. Would you like to give us your credit card number now?" Saving ten grand on a probably already overinflated bill is no "deal" in my mind ... I'd just set up payment plan for a miniscule amount and a few years down the road offer to "pay it off today" for pennies on the dollar.... turn the tables.
This is called "hiding assests" and highly illegal. Can you do it? Sure. But this thread is all the proof they need to nail you.
My brother in law is a backruptcy atty. here in Cali. From what he has told me you get in far more trouble hiding assets and other attempts at hanging on to belongings than simply being a debtor. Don't do anything until you have secured an attorney. Debt is one problem, don't add to it with fraud, tampering or any other offense. You state you have an attorney but you are doing your own fact checking on the Internet? You need to relax or get a qualified attorney. Or both.
Are your two cars registered? If not, make them vanish..NOW. Friends barn, whatever. Check with your laywer first, if they are currently registered, and you try to "sell" them quick to a friend. There may be a legal way that the court can go after you, if you try that...I dunno
We got a huge bill from the hospital for my new baby girl, and I contacted the hospitals "patiant advocate" they are the people who are there to help with this stuff. Look on the clark howard web site(he is a radio talk show host, deals in finance) hope that helps.
I don't want to mess with the feds either, I guess what I,m trying to figure out how things really work in this as opposed to how both local bankruptcy lawyers seem to look at things. What I'm running into is Lawyers have zero Idea about old cars, realistic values and such, if the bank trustee is like these two then I have nothing to worry about as they see no value in any of my vehicles although I have them insured with hagerty for about $45000 (5 cars), only two are drivable (the edsel and torino wagon) one 55 chevy belair 2dr hdtp is close to driveable but mostly disassembled my 55 2dr hdtp I have owned since I was 13 and built with my dad at 16 is now a complete basket case and on a rotissory, the 48 sdn delivery just sitting inline. Lawyers act like not worth anything but I'm supposed to attach a value, as is not alot, I was saving them as my 401k so I havent been in a hurry to finish, but is the bank trustee going to look at them like he hit the Barrett Jackson lottery? with time to finish just 1 of the 55 chevys could pay off my credit cards (which I'm not behind on yet) so I feel like im getting bent over by T-Rex because of the hospital. The Lawyer did say that the hospital I ended up in doesnt take small payments and regulary sues people and garish's wages (don't need that, starting a new job in a week). So my main question is, have any of you old car people filed a chapter 7 ? and how did the judge and trustee treat you and your cars ??? Oh and the lawyer was like oh no problem with your cars washington has a $10,000 veh exemption which well easily cover that ! my research shows $3,250 so we already have a trust issue starting, I would like to now what I'm in for before I file and waste a few thousand more. Ps the judge can reverse any sale you make up to 1 year before you file, so if you give or sell cheap your car to your buddy, they can have to return it to the courts and possible jail time. sucks edsel
Put a value of a couple of hundred bucks on them and they will not question them. Also tell them they are project cars that need work. Trying to hide them will cause you more grief than you want. That works in CA. plus most bk courts are so backed up they don't have the time check everyone out.
Nothin' for nothin'......... But I would reconsider the Bankruptcy. The credit cars can't come after you unless they sell the debt to a collection agency with sharp teeth (like an attorney). They will start the charge off 90 days after the last payment is made (default). The debtor will continue to try to collect until they truly charge it off (another 90 or so days).... After that.. they sell the debt and call and call (trying to collect)...eventually it falls off (7 years). The Hospital could try to collect... but likely will charge off as well, eventually. (same thing.. call and call...until it falls off). This is ALL speculation. I have several attorneys in the family and have worked for "banks" and with loan companies for 10+ years in my business. This is all generic advice based on the experience of my clients through the years........... The bottom line: Retain an attorney. #2....keep FLAWLESS records of conversations with debt collectors and hospital representatives (who you talked to, time, date and what was discussed). IF.... you are subpoenaed.. follow up! Appear in court NO MATTER WHAT. A "default judgement" is a LEGAL blank check for them to do whatever they want to you. Keep in mind..that depending on your age..... bad credit sticks to you pretty much for only 7 years.... it might be better to take them all down and wait it out. Also, I live in Washington as well. ANY valuation on your vehicles will be based on NADA and they DO go back that far. I learned my lesson on the '51 Chevy..they tried to charge me "Mid-Range" value..... to the tune of $8k (9% tax on that)..I argued and told them it was a POS, etc, etc... and they wanted a signed affidavit and State Patrol inspection/ professional appraisal.... Hang in there... This too shall pass..........
I really feel for you bud. Anyone who has been in your situation knows how desparate and lost you feel. Don't give up, things do turn around. Make sure your Attorney is a specialist in bankruptcy, not just a general Attorney. If your cars are projects and not registered they don't exist. Park them at a friends house. You are able to keep a lot of your assets anyway, but I would still move any that are not licensed. I have had friends go this route and within a year their lives had turned around to where they had started establishing credit again and were on the road to recovery. Keep your chin up, life does goofy things sometimes and it makes us all the more appreciative of the good times. Don
THIS. they cannot do anything as long as you are making good faith payments. BUT they CAN sell your debt to a collection agency if you do not make payments.
Thanks Don Is titled but not currently lisc. the same ? I have all 5 titled in my name but only two have current tags ? Thanks guys, I think I need to spend more time with one of the lawyers, I have been using the old car price guide as reference, but I think it still too high for this situation. Oh well I guess it is what it is, I just cant wrap me pee brain around the thought I might lose something I have put so much pain into, those that have never built these things just have no idea all the sacrifices we make sometimes, "its just a thing" "you can get another later", some of them they are correct about, but some NO I cant just get another. Its like getting who you are yanked right the hell out of you. edsel
Went bankrupt in '03. Only lost one car that was financed and nothing was auctioned. I don't know what the current bankrupcy law is, they have tightened it up.
I've never gone through bankruptcy but I have an uncle who owns a small business who did, and they only lost their one car and that had financing. His car and his children's 2 cars were untouched, and 2 of those were less than 5 years old and higher end imports.I would think your projects should be safe but again I'm in a different state and no attorney
In Bankruptcy in Michigan you will have to list your assets,and if the car is titled in your name the man alredy knows that you have it. Plus when you go to your bankruptcy hearing thay will ask you if you have disposed of any assets in the past year. All this advice about hiding your assets,seling your car to a friend ect is not in your best interest. Hire a good Bankruptcy attorney and go thru the process. A good attorney will be able to tell you would to expect. They don't like surprizes when they go to court. Good luck and stay strong. The most important thing is your health and your family. Not your cars.
Edsel, once again I'm saying that if the time comes get a private appraisal for a written value. your sentimental value and your insured value are both way high. for a true value have them all weighed and get a scrap metal estimate. Jim
I hesitate to ask, but can you try a Chapter 13? That would allow you to keep the car - but it may also hurt you in terms of assets, ie, you might need to pay more into the 13. Don't sell it now....that would likely end badly.
While some specifics may vary from state to state, bankruptcy is a Federal Court matter. If you do have to take it, you might look into a Chapter 13 instead of a 7. The short version is this; Chap. 7, they seize and auction things of value while allowing you to keep home or apartment, at least one vehicle, most hosehold furnishings, your 401K or other protected retirement accounts, etc. Some of the above contingent on where you are with house note, car payments, and such. Chap. 13, you keep all your stuff. No auction, no asset forfetures, etc. You will be paying the equivalent of your monthly house payment or more ( around 20-25% of your monthly net income ), every month, to the court for five years. Only your lawyer can advise you as to what would be suitable for you. Absolutely do not try to hide assets. If you've registered it, titled it, paid taxes on it, they will know about it. Best of luck with this, Kinky6
The Jalopy Journal
