of our rope. I realize now that BK is our only way out. But I have lots of questions. Been trolling this board for awhile, but still have ???s.
1) Was laid of from work 2 years ago, the day I returned from maternity leave with kiddo #3. Wasn't just me, everyone was gone. Had significant CC debt, but we were managing. Used my savings (was going to go to big new house) to live on for awhile. DH was self-employed PT and was PT stay at home dad with other kids.
2) Refi-'d the house with a pick-a-payment plan. Basically have been paying less than the interest owed for almost two years. Never been late (EVER EVER on house payment). Only refied for what was owed, not the value of the house. We'd planned on moving and didn't want to drain the equity -- wanted it there for BIG NEW HOUSE (what a pipedream that was!).
3) I don't want to put son #3 in daycare. Not going to happen. This is NON NEGOTIABLE. I missed a ton with kids #1 & #2 b/c of my demanding work load. Won't miss this one. Parenting is too important.
4) DH's business couldn't pay the bills, we used the business' generous line of credit to buy a new business. First year was a LOT tougher than we thought it would be. Had to replace the equipment, payroll expenses were higher than we thought, then GAS went thru the roof and ate into are meager profit margin. We used remainder of LOC for living expenses and to pay the monthly LOC payment. Shell game 101. We are in slow season right now and busines won't pick up until March/April. Goes like gangbusters in the Spring (weather permitting) and summer, then eases in the fall and goes to ZERO in late November - February.
5) I recently started another business and have used CC's to fund it. I've used another LOC and CC's to pay the printer and mail houses. I've had to use the CC's to pay other vendors while I kickstart this business into turning a profit. Not necessarily a profit, but income exceeding expenses (less debt incurred) should happen by mid year. We'll need to charge the next issue's printing. But after that It should be self-sufficient.
6) I've recently liquidated some stock I forgot I had (yes, I forgot about it -- it was purchased a long time ago and I was going thru old papers and found the folder). Not much, but it will help with living expenses for the next month.
7. DH decided to buy a beverage distribution biz opp to get us thru winter. This has turned out to be a total bust. We were basically scammed. We used a CC to fund it. We have 10K of product in our garage an no-one will buy it. We are so hosed, it's not even funny.
8) Property taxes are due by end of month. Guessing we'll charge them to keep the city/state/county from getting their hands on the house.
10) The most significant single purchase item we've put on CC's is new carpeting. Did this for health reasons as we have mold growing under the carpet in the kids rooms. Old cat had bladder problems. My son's pediatrician strongly recommended we change it. We didn't go get $8 sqyrd flooring, but got the most economical one we could find.
9) Assets:
*About 25K in a 401K/IRA (exempted)
*The house (homestead exemption in TX, lived in it for almost 10 years, value is irrelevant),
* 2 cars both owe more than they are worth -- I want to keep them and will continue paying for them.
* Kids have about $2000 combined in their savings accounts. This is THEIR money, not ours. Some was Grandma set up a savings fund before she died, others is their money they earned or cash gifts.
* Our house is decorated a-la garage sale. So contents are pretty much worthless.
* Business assets: New computer (old one was 8 years old and crashed and burned) $2000, Lawn equipment and stain equipment-$2000, Sheds for stain storage (can't keep this stuff in the garage--fumes leaked into the house, causing asthma irritation) $700
10) Current income: -29,000 per last years taxes. It was a very very very rough year.
Questions:
How long should i wait after I charge the taxes to proceed with BK filing?
Because i've basically lived on the CC's for awhile, will the trustee come back to me and accuse fraud?
I know the houses and cars are safe (will be re-affirmed) as well as the 401Ks, but will the kids assets be taken? Or what about the business assets?
The businesses are all DBA's, not LLCs. If I declare BK, can I re-open them as LLCs? Or are they history?
Yeah, we've screwed up big time. I've been battling the debt since DH was laid off 7 years ago. Each time we almost got it paid off something would come up. For the last few years we've lived with our heads in the sand and would deal with it "later". Now $130K later, it's time to face the music.
1) Was laid of from work 2 years ago, the day I returned from maternity leave with kiddo #3. Wasn't just me, everyone was gone. Had significant CC debt, but we were managing. Used my savings (was going to go to big new house) to live on for awhile. DH was self-employed PT and was PT stay at home dad with other kids.
2) Refi-'d the house with a pick-a-payment plan. Basically have been paying less than the interest owed for almost two years. Never been late (EVER EVER on house payment). Only refied for what was owed, not the value of the house. We'd planned on moving and didn't want to drain the equity -- wanted it there for BIG NEW HOUSE (what a pipedream that was!).
3) I don't want to put son #3 in daycare. Not going to happen. This is NON NEGOTIABLE. I missed a ton with kids #1 & #2 b/c of my demanding work load. Won't miss this one. Parenting is too important.
4) DH's business couldn't pay the bills, we used the business' generous line of credit to buy a new business. First year was a LOT tougher than we thought it would be. Had to replace the equipment, payroll expenses were higher than we thought, then GAS went thru the roof and ate into are meager profit margin. We used remainder of LOC for living expenses and to pay the monthly LOC payment. Shell game 101. We are in slow season right now and busines won't pick up until March/April. Goes like gangbusters in the Spring (weather permitting) and summer, then eases in the fall and goes to ZERO in late November - February.
5) I recently started another business and have used CC's to fund it. I've used another LOC and CC's to pay the printer and mail houses. I've had to use the CC's to pay other vendors while I kickstart this business into turning a profit. Not necessarily a profit, but income exceeding expenses (less debt incurred) should happen by mid year. We'll need to charge the next issue's printing. But after that It should be self-sufficient.
6) I've recently liquidated some stock I forgot I had (yes, I forgot about it -- it was purchased a long time ago and I was going thru old papers and found the folder). Not much, but it will help with living expenses for the next month.
7. DH decided to buy a beverage distribution biz opp to get us thru winter. This has turned out to be a total bust. We were basically scammed. We used a CC to fund it. We have 10K of product in our garage an no-one will buy it. We are so hosed, it's not even funny.
8) Property taxes are due by end of month. Guessing we'll charge them to keep the city/state/county from getting their hands on the house.
10) The most significant single purchase item we've put on CC's is new carpeting. Did this for health reasons as we have mold growing under the carpet in the kids rooms. Old cat had bladder problems. My son's pediatrician strongly recommended we change it. We didn't go get $8 sqyrd flooring, but got the most economical one we could find.
9) Assets:
*About 25K in a 401K/IRA (exempted)
*The house (homestead exemption in TX, lived in it for almost 10 years, value is irrelevant),
* 2 cars both owe more than they are worth -- I want to keep them and will continue paying for them.
* Kids have about $2000 combined in their savings accounts. This is THEIR money, not ours. Some was Grandma set up a savings fund before she died, others is their money they earned or cash gifts.
* Our house is decorated a-la garage sale. So contents are pretty much worthless.
* Business assets: New computer (old one was 8 years old and crashed and burned) $2000, Lawn equipment and stain equipment-$2000, Sheds for stain storage (can't keep this stuff in the garage--fumes leaked into the house, causing asthma irritation) $700
10) Current income: -29,000 per last years taxes. It was a very very very rough year.
Questions:
How long should i wait after I charge the taxes to proceed with BK filing?
Because i've basically lived on the CC's for awhile, will the trustee come back to me and accuse fraud?
I know the houses and cars are safe (will be re-affirmed) as well as the 401Ks, but will the kids assets be taken? Or what about the business assets?
The businesses are all DBA's, not LLCs. If I declare BK, can I re-open them as LLCs? Or are they history?
Yeah, we've screwed up big time. I've been battling the debt since DH was laid off 7 years ago. Each time we almost got it paid off something would come up. For the last few years we've lived with our heads in the sand and would deal with it "later". Now $130K later, it's time to face the music.
Comment