Need Some Advise

[CarpeDiem]

Have about $65k in debt.
Another $40k in 2nd mortgage
About $330 on 1st mortgage
Appraisal for house is $315k

I am considering BK around February / March 2009.

I am currently behind on cc payments for over 4 months. Oh they dont stop calling do they ? My concerns are the following:

I'm waiting till March for $15000 tax refund......which I always get.

I would be filing a ch 13 for lien stripping my 2nd mort...then a 7 possibly which would be a chap 20.

I took a cash advance of $5k on 10/29/08 so I wouldnt lose my house

I figure 90 days after 10/29 ( posted by discover cc ) would be Jan 29, 2009.
I can barely make 1/2 those payments but I understand best effort, right ?

Any Ideas or thoughts is promising.......I live In NY if that helps.


Thanks

[keepmine]

I would be filing a ch 13 for lien stripping my 2nd mort...then a 7 possibly which would be a chap 20.

This is not the definition of a Chapter 20. You first file a 7 to shed the unsecured debt and then, the 13 and repay the mortgage arreage at 100%.
Have you talked to a lawyer about your situation?

[CarpeDiem]

Update

we spk to a lawyer during 2 consultations....he wants $2500 up front....he suggested on 'getting rid of the 2nd mort' but didnt comment on the cash advance / convenience checks regarding discover....thank you for your response......lost on the island

[CarpeDiem]

More Info Please

Anymore feedback ?

[StartingOver08]

Sounds like you need to speak to another attorney or two with very specific questions. Did you tell the attorney you just took this cash advance out 2 weeks ago?

You might want to write down your questions because when you are in the consult - sometimes the attorney has a 'canned' type presentation and can't address your concerns without your specific questions.

You have a very large refund. The Trustee is going to be very, very interested in your refund. You would have to spend down that money before filing and the trustee will look at that as income. Did you speak to your attorney about the $15k?

[CarpeDiem]

Regarding the Refund

The lawyer has seen our tax records from 4 years past and that is the general amount we get back every year. And every year we use it to pay down ccards.


We even busted through my 401k for an additional $15k last year trying to stay afloat....We never considered bankruptcy.....but with the mounting ccard payments and possible alternatives available to us this could be the fresh start for me /wife and our 3 children.

Any other experience for time frames with the cash advance versus filing ?


Thank you, your responses are well received.

[StartingOver08]

Is your house now all caught up? You have to be current in your mtg to keep the house in a CH 7.

[CarpeDiem]

Update

The house is 6 days behind in mortgage. Due by 15th, I pay this Friday.

Other than that I stay pretty current.

I was told we are going for chap 13 first for the lien stripping...that's $60k+
off my shoulders ( and if behind in mortgage to reaffirm and rectify then ) and then convert to chap7 shortly thereafter

somehow i just am a little proccupied with the cash advance from 9/29/08...for $5k. I made automatic payments from by bank to the first and 2nd mortgage with it. How long should i wait ?


Thanks again for your responses.