barbo
06-10-2005, 05:42 AM
Hello all,
I am new to the forum, my husband and I have just made that gut wrenching decision to go forward with the BK... At this point we are totally current on all bills, but that is about to change- I opened a small retail specialty store 15 months ago that has completely drained us of our savings, maxed all the credit cards, etc etc and there is no way we can recover from this even if the store tripled in sales tomorrow, I would probably still being drowning in cc debt and loans, equipment leases, etc... Anyway, I am shopping attorneys and meet with one today. One concern is of course trying to keep our home. We have a 45k exemption in CO and depending on the appraised value we are cutting it a little close for comfort. Here is my question- we have a home equity line of credit of 46k and the 1st mortgage at 138,000. Would it be wise to combine the two and then take out some funds to pay off some of the debt before we file and before our credit goes down the tubes or is that something that you are allowed to do. Another concern is since the line of credit is with our bank couldn't they try to take our house- it is our intention to close the store and try to deal with the landlord to break the lease but that to scares me because I fear that if I tell him now that we aren't making it he could put a lein on our home and I wouldn't be able to protect my home. Any guidance would be greatly appreciated.
I am new to the forum, my husband and I have just made that gut wrenching decision to go forward with the BK... At this point we are totally current on all bills, but that is about to change- I opened a small retail specialty store 15 months ago that has completely drained us of our savings, maxed all the credit cards, etc etc and there is no way we can recover from this even if the store tripled in sales tomorrow, I would probably still being drowning in cc debt and loans, equipment leases, etc... Anyway, I am shopping attorneys and meet with one today. One concern is of course trying to keep our home. We have a 45k exemption in CO and depending on the appraised value we are cutting it a little close for comfort. Here is my question- we have a home equity line of credit of 46k and the 1st mortgage at 138,000. Would it be wise to combine the two and then take out some funds to pay off some of the debt before we file and before our credit goes down the tubes or is that something that you are allowed to do. Another concern is since the line of credit is with our bank couldn't they try to take our house- it is our intention to close the store and try to deal with the landlord to break the lease but that to scares me because I fear that if I tell him now that we aren't making it he could put a lein on our home and I wouldn't be able to protect my home. Any guidance would be greatly appreciated.