Whether to file or not??

[bkjames]

I am brand new to the forum, and have actually only started thinking about bk this week. Please pardon me if my questions are repetitive or uninformed.

I have about 65k in unsecured debt, mostly CC debt. I also have a mortgage, he loan, and two vehicle loans, which total about 190k. The house has no equity in it. The cars have no equity in them. I have two personal loans for about 90k, one of which is from a family member. I would like to keep paying that one as agreed upon, if possible. I make about 50,000a year. My wife and I purchased two franchises last year, and they are in the form of an S-corp. My wife makes about 35-40k each year in our home-based business, but it is very seasonal. There are no assets associated with the business. We live in SC.

I was just wondering if Chapter 13 or 7 would make more sense. Could we possibly put the business in someone else's name before filing to avoid having the trustee take the business from us?

Also, what are your opinions on debt settlement companies, as I have thought about doing that, as well. Thanks so much for all of your opinions.

[SinkingFast]

Welcome to the Forum, James!!

First of all, you cannot pick and choose what unsecured debt you put into BK. Your family loan will have to go in and be discharged, along with any other debt. Now that does not prevent you from paying your family, or any other Creditor for that matter, what you owe after your BK is over. It just means, officially, you no longer owe the debt.

Ch 7 and 13 are for personal BK. Personal BK is what most people here are familiar with.

You cannot pick which Ch of BK you file either. That's determined by your income level, and to some extent your expenses. Whether or not you filing Ch 7 would constitute and Abuse of the BK Code falls to the Means Test.

http://www.usdoj.gov/ust/

You can access all the numbers and the Means Test from the Link above.

You didn't say how many people in your family but here's the Median Income figures for family sizes 1-4 in SC. Add $6300/yr for each additional family member over 4.

South Carolina 1-$32,110 2-$43,653 3-$48,286 4-$57,932

Also, if you'd want to consider giving a Debt Management Plan a try, you might want to check out a DOJ approved Credit Counseling Agency. Click the link for Credit Counseling and Debtor Education. Then select Credit Counseling and look for an approved Agency in your State.

[CAB_44]

Welcome James~ you will find the best of advice here!
What SinkingFast has said here is true!! She's one of the best on here!!
Lil' Miss knows it all !!!! I mean that RESPECTFULLY!!!!!!!!!! She's great! as are many others here!
Welcome again!!

[debtisbad]

welcome james,

There are many many people in your shoes. I filed and was dismissed about 3 months ago. Had perfect credit all my life. Kind of funny, one of my cards said member for 20 years on it. It was my first card when I was a freshman in college. I always paid it, until I filed bk. Life is strange. There are many good people on this forum. They have been through it and have loads of information!

[bkjames]

Thanks for the encouraging words.

If I would have to file Chapter 13, and pay back 100%, would it be better to try debt settlement first? I've looked at debt consolidation, but the payments are too high for me. Do I need a debt settlement company, or could I negotiate with them on my own?

[CAB_44]

just a personal opinion james~
We almost did the debt settlement thing...glad we didn't.
Chap13 at least will stop interest rates/suits
and you'll be finished with the debt once and for all....

[dac67]

DON"T DO DEBT SETTLEMENT! I did that and I had 2 law suits coming at me and the harrasing phone calls just about put me over the edge!
I will say there is one company in Colo. I beleive that will change your address for you and they will change your home # to theirs so that the creditors can't contact you. I went with a different Co. and they basically sucked. Maybe things would have been different if we had gone with Co. B but I was forced into 13 to just stop all the harrasements and suits. I couldn't take it anymore.