My husband and I filed Chapter 7 January 28 this year. We are waiting on discharge. We re-affirmed our car but now we want to include it. What schedules do we need to amend and what happens with the car? Do we surrender it to the bank now or after discharge? Also, how do we amend Schedule B and C to include a tax refund that we are anticipating of $4000 (joint return)? We only have $750 on the Schedule C now.
Sorry guys. We spoke with our credit union and it's either all or nothing so surrendering one vehicle and keeping another is not an option. So that answers that question. Now, since we only have $750 in exemptions listed on the Schedule B, we should be able to amend B and C to include our tax refund as exempt. Ithink we are allowed $2000 per person in exemptions in Illinois. My question is what do I write for this and where on Schedules B and C when amending.
Family Law Attorney
Sorry to read about your vehicles. Your tax refund should be included on line 18 of Schedule B. On Schedule C you can exempt any personal property up to $4,000 for husband and wife. On schedule C Description of Property is TAX REFUND, SPECIFY LAW is 735-5/12/1001(b), VALUE is amount of refund, CURRENT VALUE is amount of refund.
Amending the schedules requires you to make a new schedule with the appropriate asset amount on "B" and the appropriate exemption on "C" and filing same with the court as amended. As far as the car, if you signed and filed a reaffirmation agreement, you must send a notice to the creditor that you are rescinding the contract and you must file this notice with the court before discharge is entered. Then, you may make arrangements to surrender the vehicle back to the lender at your leisure.
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Chapter 7 Bankruptcy Attorney
Your first issue isn't that you need to amend your petition, because your car loan should have been included in your bankruptcy. What it sounds like you want to do is to rescind the reaffirmation agreeement. Since you only have 30 days to rescind a reaffirmation from the time it was approved by the court, you need to get this done right away!
There isn't any official form that I know of to do this, so I would recommend that you use a standard Notice form and modify it. Be sure to include a certificate of service of the Notice and state that you are rescinding the reaffirmation. Attach a copy of the reaffirmation to to Notice when you file it.
The way to amend schedules B & C is to file new schedules with the all information, including the corrections according to the procedures contained in your court's local rules. These rules will be posted on the website of your local bankruptcy court, not on Pacer. Since you indicate that most of your tax refund will not be eligible for an exemption, you will probably need to turn over your entire refund check to your trustee and let him/or send you the amount that is exempt. Not following local procedures on this could result in problems for you, so contact your trustee for further instructions.
Hope this perspective helps!
General Practice Lawyer
You have multiple issues and should be consulting an attorney. It is not likely that you will successfully cover everything that should be considered.
The reaffirmation agreement can be rescinded for 60 days from date of filing or before discharge, whichever is later. Notify the holder of the claim.
Concerning your tax refund, the general personal property exemption usually applied is $4000.00 per person (usually referred to as the "wildcard" exemption). In addition, if any of your refund is based on earned income credit, you can first exempt that under 735 ILCS 12/1001(g)(1) as a welfare benefit. Also, are you sure that you did not use any of the wildcard exemption where you may have been able to use a more specific exemption?
It sounds like you are anticipating that some of your exemption will be freed by surrendering your vehicles. That is only the case if you used the wildcard exemption against the vehicles. If the vehicles were exempt under the vehicle exemption, that exemption will not be available to be applied to other property.
Amended documents are filed much the same as the original documents, but are designated as amended in the title. Depending on the particular schedule, you do not need to refile every part of the schedule, for example listing each creditor, but only those that are being amended or added.
You should review correction of your Statement of Intention and your expense schedule if you are no longer going to have a car payment.
The scope of this space does not afford an opportunity to assess the situation and advise you. Contact an attorney promptly to afford the most opportunity in which to be advised about your best course. You are not required to use an attorney in your area.
I do not recommend continuing the bankruptcy on your own. There are too many complex issues. I have seen several posts on this site for debtors who filed on their own and are seeking counsel concerning complications. Most of them will have a hard time finding an attorney to get involved to unwind the mess without the attorney charging several times what would originally have been paid.
The scope of this space does not afford an opportunity to adequately advise you. The response provided is intended to be informative, but not final. You are advised to arrange a consultation at which all facts and documents can be explored and terms for representation agreed. An attorney-client relationship must be formally established.