Really need some advice.. please

[ansky0007]

Ok, I have a consultation with a lawyer on Monday but I cant sleep and need some advice so hopefully I can ateast get some peace of mind to make it through the weeked.

Here is my story... Lost my Job 5 Years ago was making good money almost $80k a year, After 2 years of job hunting I could not find a job that would pay not even half of what I was making. Decided to buy a business for $70k with my 401k money and credit cards... Business failed and did not make a penny the first year, 2nd year made $15k or so and third year this year looks like it will make $30k or so so finally the business is growing and if it keeps growth maybe next year $60k.

Along the way however I have managed to rake up $300k in credit card debt and I have been doing balance transfers from one card to another and back and forth to keep my bills from being late. At this point in time all the banks have pulled my balance transfers (Guess they caught on how I was surviving) and not I cant make the payments since I have maxed out all my lines and transfer rates that were 3.9 or 5.9% have grown to 18.99 to 24.99% because of the late fee's.

My home mortgage is $400k and I have never missed a payment on the mortgage, It sold I might be able to get $500k but who knows with todays realestate market.

Are there any bankruptcy options available that would allow me to keep my home or will I loose the home and everything I have? If it was just me and my wife I would not care but I have 2 small childen and another on the way in a few months. Do they also get to take my small growing business? Any advice on what I should do? Again I have a colsultation on Monday but if anyone has been in my situation and would mind sharing an experience I would appreciate it.

[Flamingo]

Does your wife work? Also, it appears you have utilized your credit cards to start and keep your business afloat. I am trying to understand how you make it on just $30,000 a year from the business and keep your mortgage and family afloat - are/were you also living off your credit card limits or there must be some other household generated income (i.e., your wife). Since you have a business involved along with personal credit cards being utilized for both business and personal, you truly need a consultation with an attorney who specializes in both business and personal BKs as it can get a bit complicated.

It is a stressful time prior to investigating filing BK as many of us on here can attest but once you get a handle on your finances and find out exactly where you stand, it will all fall into place. I know how a job loss can devistate your life and help to run up the credit cards by staying afloat trying to find that position that will pay the same as the lost job. We managed to get by one year with juggling Peter and Paul payments but you get to the point, as you, when Peter and Paul become broke also.

Best of luck to you and your family.

[ansky0007]

Does your wife work? Also, it appears you have utilized your credit cards to start and keep your business afloat. I am trying to understand how you make it on just $30,000 a year from the business and keep your mortgage and family afloat - are/were you also living off your credit card limits or there must be some other household generated income (i.e., your wife). Since you have a business involved along with personal credit cards being utilized for both business and personal, you truly need a consultation with an attorney who specializes in both business and personal BKs as it can get a bit complicated.

It is a stressful time prior to investigating filing BK as many of us on here can attest but once you get a handle on your finances and find out exactly where you stand, it will all fall into place. I know how a job loss can devistate your life and help to run up the credit cards by staying afloat trying to find that position that will pay the same as the lost job. We managed to get by one year with juggling Peter and Paul payments but you get to the point, as you, when Peter and Paul become broke also.

Best of luck to you and your family.

Since I worked in one place for almost 11 years I moved up through the company and ended in a high level position without a college degree... Company went bankrupt after 11 years and I lost my job and since I never went to college I could not get a job even with my job experience.

Although I cashed out my entire 401k plan, and had excellent credit I was able to use credit cards and I juggled them very good, I never made a late payment until last month and this was going on for years. My tax statements reflect just how bad I have done financially but I knew if I worked hard enough I could build my business to where I could live off of it. I have read that most new businesses loose money the first two years and I can attest to the truth of this. Profits however have gone up consistantly 30+% each year and this year and next year it should get into a real salary range but my debts are now out of control and I can not keep this up. My wife worked in the past but she has a high risk pregnancy and she can not work so its only me now.

My concern is I dont think I could feasably pay off $300k of my credit cards if I filed chapter 13 because it would be 3-5 years and even if it was 5 years ar $0 interest thats $60k a year which is what I expect to make next year and that is without paying a mortgage etc.

I have a feeling I will not only loose my house but my business and then what will my family do when I have no salary and no home?