Opinions please?

[Tromploi]

The more I read the more questions I have. I KNOW so many new folks like myself do this to you who have been through it, so I hope you don't mind one more. Can you give me an opinion of what you think of my "case"? Sorry this is long.

Live in CA.
Income is about 130K
Family of 4

Keeping the house:
Owe on the 1st 354K pymnt $2150 (I/O till 2010)
2nd 210K pymnt $1600
House is worth about 500K

Keeping 2 cars:
1 payment is 400, owe about 15K, worth about 15K (kbb)
2nd payment is 300, owe about 14K, worth about 21K
Tractor payment is 350, owe about 10K, worth about 15-20K

The rest is all consumer debt, which is why I assume we don't qualify for a 7 (that and income). We owe about 130K in credit cards. We have not stopped paying yet, nor are we behind on anything, right now are in the process of stopping all the auto deducts on them and learning to use ATM. Will probably stop paying this next month. Will file in maybe 3-6 months or so after not paying for that long or using the cards so no issue of fraud, do our 2007 taxes, get all of our paperwork together, deal with the creditors calling (my stomach is in knots already) and file after we have saved up a bit and paid down what we owe on our cars. Our mins are about 5500/mo, so we can probably pay off our cars. We have alot of expenses besides these things, animal feed (besides all the livestock we have 3 great Danes, they're expensive!), water, electric, all are higher than the allowed amount because we live on a ranch and don't have a well, run electrical to the barn etc.

I spent the day today opening all new bank accounts, both personal and biz because 2 of CC's we are including are from our current bank. We will probably keep one acct open (if they let us) because our 2nd is auto deducted from that acct. Plan to transfer money the day before the payment is due every month. Not sure how that will work out.

Any ideas at first glance what this will look like to a trustee? Any suggestions?

PS Gawd I envy those of you who are DONE! Feels like the mountain I am just beginning to climb is Everest.

[rrockinggramma]

Have you talked to an attorney yet? It is possible you qualify for a chapter 12 which is far different than a chapter 13. It is a "farm " bankruptcy and works much different than a regular bk. I believe you need to get to an attorney or 2 or 3 and find out first. I do not know anything about farm Bk's

Why do you want to pay off your cars? Are the loans older than 910 days? If so, you could include them in the plan and cram them down.

but I would find out since you have livestock, if chapter 12 would be better suited to your situation.

http://bankruptcy.findlaw.com/bankruptcy/more-bankruptcy-topics/chapter-12-basics.html

[Flamingo]

I agree with rrockinggramma - Get some good legal advice as to your situation. Also, as I think you are already aware, you need to start doing some lifestyle and budgeting changes as to your entire family and learn to start cutting back and staying cut back, even as things start improving when you get straightened out. You may find out you may not be able to afford the 3 Great Danes (I KNOW what they cost to feed and take care of - have a good friend who has just ONE! LOL!) Do you have friends or family who can help out with them somewhat so you don't have to give them up? You'd be surprised at how helpful and supportive friends and family can be during a financial crunch.

Best of luck to you....

[Tromploi]

Thanks for the advice. I had read about 12's before we spoke to any atty. We don't make money from the ranch per se, we did sell a couple of llamas each year but that was so we could write off the feed a little bit. We definitely do NOT make 50% of our income from the ranch which is one of the requirements. It's basically seems the same as a 13 in terms of payback, it just looks like a more streamlined process and your debts can be much higher (millions).

We are cutting back significantly. No more credit cards. That alone is huge for us. I am aways ordering flowers for my clients, people who work for me bdays, $100 gift cards for teachers etc. That will all have to stop. Handwritten notes instead. But we spend alot on things we don't need to. The animals, those are my whole life, without the dogs I have no life. I love my family but my animals keep me sane. I would eat Top Ramen forever before I could imagine giving up the dogs (I know that's not what you were saying, but eesh).

Anyway, as far paying down the cars I just thought we might as well since that would mean $700 less going out each month when we start paying the BK back. Might as well pay off as much as we can on other things we owe, seems smart.

[rrockinggramma]

all that does is increase your monthly payment to the trustee by giving you more disposable income. I wouldn't pay them off prior to filing. Wait until after confirmation. GL with your dogs.

[Tromploi]

That makes sense, but on the other hand, at 100% payback, 5yrs on 130K our payments would be $2166/mo. Without car payments and cc min's we would be "saving" close to $6500/mo. So even the $2166 would be doable. But, what do I know really? Nothing. Will see what atty advises, probably the same as you.

I guess I am afraid they will take the cars, or the tractor, we can't LIVE without the tractor, could get cheaper cars if need be. So if they are owned free and clear,,,,,,