Depressing times

[barefootboy]

2019 was a bad year to say the least. 2020 looks much brighter thank goodness. There is a chance I will not be able to get out of some of the holes I'm in financially even as good as 2020 looks. May have to file chapter 13. I really have a sentimental relationship with my boat as I'm sure all of you do. If I have to file is there any way to save my boat? It is a 2003 wakesetter then I have put many man-hours into as well as dollars. Thanks ):

[Sparky450]

Sell to a friend now for $1.00. Or do you have a relative with the same name? AKA SR. Or JR. It could easily become theirs. I know people who have done it. Thankfully not me.

[Eagleboy99]

2 hours ago, Sparky450 said:

Sell to a friend now for $1.00. Or do you have a relative with the same name? AKA SR. Or JR. It could easily become theirs. I know people who have done it. Thankfully not me.

Bankruptcy fraud.

[barefootboy]

6 hours ago, Sparky450 said:

Sell to a friend now for $1.00. Or do you have a relative with the same name? AKA SR. Or JR. It could easily become theirs. I know people who have done it. Thankfully not me.

I believe that they go back up to one year on sales. Not an option

[hunter77ah]

9 hours ago, Sparky450 said:

Sell to a friend now for $1.00. Or do you have a relative with the same name? AKA SR. Or JR. It could easily become theirs. I know people who have done it. Thankfully not me.

Trustee will likely void the transfer under Section 548.  Talk with a bankruptcy attorney. They will be able to help you out and explain the CH 13 payment process.

[smileysteve]

More work, but list it on boat setter 100% of the time. To make enough money to pay off debt.

But realistically, try to sell it now so that you can get a good value rather than someone else selling it at auction. If you're going to lose your boat at least get a good value for it.

[JeffK]

I can't offer any suggestions, but sorry to hear that you are going through this. 

[Raleigh]

Sorry man! Yeah you need to find a good bankruptcy attorney in your area. More dollars for that, but money well spent to protect what you got. 
 

If you had enough lead time you could put it in a trust or different Corp but yeah, the creditors counsel will find that out quick. 

Try and sell it locally to someone you know who would offer to take you out on it occasionally, that’s probably your best bet. Don’t sell it for too low though, the attorneys will pick through that quick as well. Document everything!

Bankruptcy can be a new start so good luck to you! 
 

 

[Murphy8166]

Sometimes we have to make VERY hard decisions and give up things that are EXTREMELY PRECIOUS to us so that the lesson is learned is such a way that we will never repeat again.

[Sparky450]

22 hours ago, Eagleboy99 said:

Bankruptcy fraud.

 

17 hours ago, barefootboy said:

I believe that they go back up to one year on sales. Not an option

 

14 hours ago, hunter77ah said:

Trustee will likely void the transfer under Section 548.  Talk with a bankruptcy attorney. They will be able to help you out and explain the CH 13 payment process.

I never said it was right. I would cut my losses and move on. Life is short. Rebuild and do it again. I simply said “I know people who have done it”. He was a junior. So some of it became his dads. (Senior) 

And I also say sorry to hear the hard times. 

[Fffrank]

I don't believe you need to liquidate any assets under Ch13.  You may have to if you have a note remaining on it (although I believe that is your choice and not the trustees.)  Ch 13 will require a repayment plan of all of your outstanding debts and you'll need to stick to a very tight budget throughout the 3-5 year process.  In most states you can only file through an atty and they should help you with all of those types of questions.  Most have a worksheet that you will fill out during an initial consultation.  It's worth it for many people and will likely take some stress off of you.  The good news is that you'll exit the bankruptcy debt free and the interest on all of your current obligations will not continue to accrue (in fact, when my girlfriend went through the process many years ago it was SHOCKING how many creditors didn't even respond to the bankruptcy case.  Over 50% of her debt was straight discharged.)

[jjackkrash]

See a bankruptcy attorney and get the right advice.  But without knowing more, I would generally look harder at a Ch. 7 if you can.  Both a 13 and a 7 will have similar impact on your credit, but a 7 will clear all the debt instead of having to make more payments.  I'd much rather get a complete discharge than have to make more payments.  

[oldjeep]

I'd also suggest first talking to a financial planner to see if there is a non bankruptcy option to reorganizing your issues.  I'd rather take a big distribution from my retirement and paying the penalty before messing up my credit, but that is only an option if you have one and can take out whatever you would need. 

[shawndoggy]

17 hours ago, oldjeep said:

I'd also suggest first talking to a financial planner to see if there is a non bankruptcy option to reorganizing your issues.  I'd rather take a big distribution from my retirement and paying the penalty before messing up my credit, but that is only an option if you have one and can take out whatever you would need. 

Eeek that's crazy talk.  Generally speaking retirement accounts are judgment proof (exempt from creditors claims).  Paying a tax penalty AND exposing an exempt asset to creditors = really bad idea, especially just to preserve credit (which is probably part of what caused the problem in the first place).

[oldjeep]

1 minute ago, shawndoggy said:

Eeek that's crazy talk.  Generally speaking retirement accounts are judgment proof (exempt from creditors claims).  Paying a tax penalty AND exposing an exempt asset to creditors = really bad idea, especially just to preserve credit (which is probably part of what caused the problem in the first place).

I don't know that you would be exposing it - the whole idea of taking the money out would be to use it to pay directly against whatever debt is causing the issue.  But that is just me, I'd do whatever was possible to pay my bills and not have to go into bankruptcy.  Although the boat and any other toys would be the first thing for sale in an event like that.

Good luck to the OP, whatever their situation/solution is.

[JeffK]

I'm not sure I'd recommend this as an option, but I'll say it might be an option.  Some life insurance policies will let you borrow against them

[jjackkrash]

12 hours ago, oldjeep said:

I'd do whatever was possible to pay my bills and not have to go into bankruptcy. 

This is a good sentiment, but the worst of all possible worlds would be liquidating exempt assets, holding on too long, and still needing to file after all exempt assets have been liquidated.  Once the honest assessment is that bankruptcy is necessary, the ballgame is maximizing exemptions and discharging as much debt as possible.  Holding on too long to stave off the inevitable can be a big mistake.    

 

Edited February 15, 2020 by jjackkrash

[dlb]

Some retirement plans will allow loans.  Check that out as an option versus withdrawal and the associated taxes and penalties.

[NWtech]

On 2/7/2020 at 9:23 AM, smileysteve said:

More work, but list it on boat setter 100% of the time. To make enough money to pay off debt.

But realistically, try to sell it now so that you can get a good value rather than someone else selling it at auction. If you're going to lose your boat at least get a good value for it.

I have no idea if this is a realistic option at all but having my 2004 LSV on boatsetter went amazingly well for me last year. I would be happy to share more on my experience with it if that’s helpful. 

[Raleigh]

Bankruptcy is a better option than using exempt assets like 401k, IRAs, life insurance and annuities (depends on state) to stave off the inevitable. Save those assets for post bankruptcy.