OK...I am new here and I have just been reading the past week or so. And I was hoping to ask a few questions and get some advice. First of all...the short of the story is I just went through a divorce from a cheating wife and I got all of the assets in the marriage and most of the debt. I let me pride and ego get in the way and wanted to kep everything. She walked off pretty clean. I don't need to hear anything about the mistakes I made here. thanks. OK...so now I am trying to get a handle of everything, including the massive amouts of debt I have. I would like to post my situation and get some advise. I am considering BK but after reading here it seems there maybe some better choices. First off...I have a first and second mortgage totally about $138,000.00. My house is worth about $140,000.00. Second I have a auto loan of around $20K, the car is worth about $25K Stuent loans...around $27K Boat loan...around $24K and the boat is worth about the same. Line of credit from MBNA with a balance of $32K Citibank Visa with a balance of $20K American express with a balance of $9K MBNA visa with a balance of $2K Bank Of America visa with a balance of $6500 The line of credit from MBNA is in both of our names. She paid her half but then I moved some of my other balances over to this card. The house and boats loans are in both of our names but I have quick claim deeds to all the assets I still have. There was nothing in the decree about me refic the house or boat. I am current on all accounts...for now. I will remain 100% on the house, car, and boat. The student loans are in forberance. basically....what do I do with all of this unsecured debt? I have talked to a BK lawyer and ways to go that direction. I guess what I am looking for are some other alternatives and where to read up and become edcuated on those alternatives... thanks!
My questions and observations: You look like you are "buried" in the house. With only 2K in equity, the cost of sale would probably leave you upside down. Are you willing to part with the car or boat?
the boat....yeah, maybe at the end of the summer. the car...no, have to have it. I have thought of selling everything I can and live like crap for a few years and pay things off. However, with the divorce behind me...I am just now starting to enjoy life and I feel like I have a reason to be alive. I now understand that emotinal health is pretty damn important. Therefore, selling everything and living like that...is not an option. My credit is also not that critical to me anymore. I have a fairly new home and car. My parents had to file BK about 15years ago and they used my credit for several years. So...they kinda owe me now. Obtaining credit for a new car or something...won't be a problem.
Why waste any more time-- you're already bankrupt...just file and get it over with. There's no way you will ever pay off that debt, unless you win the lottery, so why kid yourself into thinking that you can do anyhting except file bankruptcy. If you plan it properly, you'll save the boat and other toys. Also, remember that your house isn't really with $140k. The trustee will value it much lower than that. A decent BK attorney will be able to get some of the 2nd mortgage stripped off the home. Your car isn't worth $25k, either. The trustee will value it at a wholesale level, so you can probably negotiate something there too. Of course, I'd just give the car back and get a different one anyway. Stop paying the bills, save the cash, and start planning to file in 3-4 months. If I were you, I'd have my parents open a savings account in their names, and then start putting money in there.
thanks for the advise. that's kinda what I have been planning. However, I found this board and I wanted to do some research and make sure there weren't some better alternatives. what about the line of credit that is in both mine and my ex's name. if I file BK on it...are they going to go after her? Oh...and I want to keep the car. it's decked out pretty nice and I have only had it about a year or so.
Re: Re: new here...and lots of debt. help.. I would think carefully before I started hiding money from the court.
Re: Re: new here...and lots of debt. help.. "I would be careful before I started hiding money" why? explain?
If you are moving money into your parents name to avoid declaring it during the BK, that is considered fraud.
Re: Re: Re: new here...and lots of debt. help.. Yeah, no one EVER does that. Oh my... If you plan properly, follow the LAW, and don't make stupid moves, there's no reason not to come out of bankruptcy clean. Just transfer the money to the parents long enough before the BK fling that it's not illegal.
No, it's not, provided he does it the right way. He needs to see an attoreny who really understands the BK laws, and not an attorney who goes for quantity instead of quality. Doesn't the original poster owe his parents a lot of money? (hint hint) Is there anything illegal about paying them back 6 months before filing bankruptcy?
yeah...I "owe" them some money. Better yet...how about I just start stashing cash at home? OK...other question. I have been using these cards and accounts. I am not any more...they are maxed. How long should I wait to file since I have been using these? If I don't wait...cant they come back and say I was using the cards...knowing that later I was going to file? thanks.
Re: Re: new here...and lots of debt. help.. No, provided he does it far enough in advance of the filing. Bankruptcy is something that is best planned 6 months in advance. Since the original poster obviously has the luxury of time, he would be smart to start planning for a BK later this year.
Re: Re: new here...and lots of debt. help.. 6 months. The CC isuers don't care about you...you're just a number to them. If you file BK, your number will be written off as a bad debt.
Why are you even CONSIDERING bankruptcy on a $75K salary??? ___________ "First off...I have a first and second mortgage totally about $138,000.00. My house is worth about $140,000.00." Easily payable on your salary. "Second I have a auto loan of around $20K, the car is worth about $25K" Can be sold, take the hit "Stuent loans...around $27K" Not dischargable "Boat loan...around $24K and the boat is worth about the same." Sell the boat, take the loss. Line of credit from MBNA with a balance of $32K Citibank Visa with a balance of $20K American express with a balance of $9K MBNA visa with a balance of $2K Bank Of America visa with a balance of $6500" So, you are really looking at $60K in dischargable debt + the losses from the boat and car. You make $75K. A bankruptcy will haunt you for a long, long time. On the other hand, if you buckle down and work through this you can be out from under the load in a couple of years. You'll need to be clever about shifting balances around to take advantage of low interest rate offers, etc. [Edited to correct grammar]
MANY PEOPLE HAVE COME BACK FROM A LOT WORSE PLACE THAN YOU ARE WITH-OUT BK... Chart the interest rates you now have and pay off the HIGHEST FIRST...(min payments on all accounts except the HIGHEST INTEREST RATE ACCOUNT...pay as much as you can over the min) Work one card AGAINST another card for lower rates or BT offers... Try to cut spending... Since the MORTGAGE is tax deductable...leave that for last... YMMV
