O/T Bankruptcy?

DireStraights · Feb 22, 2009

Due to the economic downfall and cutbacks by my employer it has come to the point where I may have to file for bankruptcy. In addition to my fulltime employment I also have a small (25 acre) farm where I raise a few beef cattle. All of the equipment that I have is 50s-60s vintage along with a 46 Farmall H that was my grandfathers. My question is will I be able to keep any of the equipment and cattle or will I be required to liquidate everything? It's not what I want to do but I may not have any other option. Thanks in advance.

kyhayman · Feb 22, 2009

A lot depends on what type of bankruptcy and how bad a shape you are in determines that. Are you solvent, as in do your total assets exceed your total liabilities? I would try, if there is any way possible, to work something out with your creditors. I realize it costs money, but meeting with an attorney now may save you later. If you do file, your attorney then will make sure he gets paid even if that means he gets the farm. Right now, if an attorney can help you negotiate your way out of things you may be able to save some of your assets and your credit rating.

GeneMO · Feb 22, 2009

Sorry to hear of your problems. Your grandfathers Farmall needs to find a home in a friends shed for a year or so. Anything that doesn't have a title in my opinion does not exist. That is unless you have it listed on a note at the bank. If the equipment is itemized on a note, then you will need to have a friend or someone purchase it and sell it back to you later.

Keep your chin up! It'll get better.

Gene

Bill Shafer · Feb 22, 2009

Years ago I had to file for bankruptcy due to wifes health problems. We ended up going to court and the ones we owed money to had to show up. If they wanted their money. Those that did not show up got nothing. They put us on a plan where we paid so much a month to the court and they gave out the money. We got to keep everything. Just all bills rolled into one payment.So find you a lawyer and see what plan is best for you.

Spook · Feb 22, 2009

I'd get a good bankruptcy lawyer. I would do nothing until you talked to the lawyer. They will tell you what you need to do, and how to best do it.

Pair-a-dice farm · Feb 22, 2009

Sorry to hear of your troubles, these are tough times. I agree that you should talk to a lawyer that specializes in these things, good luck.

Goose · Feb 22, 2009

Sounds like Bill filed Chapter 11, where you're protected from creditors while you reorganize. If Chapter 11 is successful, you do keep all your assets.

Chapter 7 is total liquidation, where the only thing that isn't liquidated is your home and a $2,000 car. (I think). Everything else is sold off.

If I were you, I'd see a REPUTABLE credit counseler (not one of the nutcases that advertise on TV), or an attorney with the appropriate specialties right now. You may be able to keep from filing at all, or at least stay with Chapter 11.

BLinWMI · Feb 22, 2009

I would advise filing chapter 13. The only assets that can be taken are those attached to the specific liability. I had to file chapter 13 in 2001 and kept all of my equipment. The only secured loan was tied to the cattle and they were sold to cover part of that debt. The debt I had that was tied to any equipment was reaffirmed.

dittmerku · Feb 22, 2009

Get a lawyer; don't waste time with a credit counselor or anybody else. Find a good attorney that specializes in bankruptcy. Believe it or not, this may be the best way for you to start anew. It may take a while, but it will be worth it. Get the best advise, and get it sooner rather than later.

buickddeere · Feb 22, 2009

Transfer any assets out of your name and into somebody else's like a spouse or child.

Anonymous-0 · Feb 22, 2009

See a lawyer, He may come to some agreement with the Creditors, getting it paid over a period is better than 3/5ths of FA.

Anonymous-0 · Feb 23, 2009

As long as you have a job pay off the bills.If you have gone nuts with credit cards thats another problem.Take a long look at your spending habits.Credit cards should be burned.Too easy to spend money with cards.

greygoat · Feb 23, 2009

A lot of people are filing bankruptcy, and lots
of shyster lawyers are circleing like vultures
to pick the bones! I AGREE--GET A LAWYER TO HELP,
BUT ASK AROUND.

Leland · Feb 23, 2009

Wrong Goose
We filed back in 04 and we did not lose either car or truck and both were well worth more than 2000 each kept the ATV and all ,but since the equipment can be considered a disposiable asset the court clerk will probley grab everything he can from it and auction it off the 25 acres will have a huge bulleye painted on it unless he owes a lot of money on it where the court could not sell it and really gain from it . But in ILL they never treat any 2 cases the same .

Mike M · Feb 23, 2009

No title to that equipment or cattle so how are they going to prove they belong to you ? Gotany neighbors that will let you hide them at their place ?

Bill Shafer · Feb 23, 2009

I remember now(brain slow) We filed chapter 13. Where you agree to pay back what amount the court sets for you.But that was years ago so you need to find a good Bankruptcy Lawyer. Forget about anything else. Had a friend who went to a credit clearing group. People found out and took everything he had.

Mike (WA) · Feb 23, 2009

I am an attorney, and did bankruptcies until 2005. Talk to a bankruptcy attorney- look in the yellow pages. Bankruptcy is a very specialized area of practice, and general practitioners won't even know enough to keep you out of trouble.

Don't go to a credit counselor, until you see an attorney. You may end up there, but atty will know the crooks (and there are many) and the straight shooters.

As far as what you can keep, there is a set of federal exemptions, and most states have their own set of exemptions as well. Impossible to advise you without knowing your state's exemptions.

If you do decide to have your machinery take up residence at a friend/relative/neighbor's place for awhile, make sure: 1, it isn't on someone's security agreement for a loan somewhere, 2, that the person you take it to is trustworthy, 3, that nobody else will rat you out, and 4, don't tell the atty about it at all. If you do, you will put him in a very difficult position, and he will probably withdraw from the case. If there's going to be any perjury done, its gonna be by you, not me! No attorney I know will risk losing his license over a consumer bankruptcy case.

Good luck!

Mike (WA) · Feb 23, 2009

If he's having employment problems, he'll have trouble getting a 13 confirmed (approved by the court). First thing they look at is a "regular source of income". Its a little easier if you're self employed, and just short on work at present- they'll usually let you be optimistic for awhile, but will eventually lose their sense of humor if you are continually unable to make the scheduled payments. Much harder if you're a wage earner- no job, no Ch. 13.

Anonymous-0 · Feb 23, 2009

we have made good money finding these type items and have been very successful at it and at the same time forceing the crooks to lose it all and getting to prove fraudulent paper work hope we see you soon you would be surprised how many neighbors will trun you in for a few dollars

Mike (WA) · Feb 23, 2009

Slight revision to No. 1 of last paragraph- make sure it isn't on a security agreement to someone, or on a financial statement you gave to get a loan somewhere. As long as none of your creditors know of its existence, you might just pull it off. But once they start asking questions, it gets very uncomfortable.

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