I know you guys see this all the time but it's all new to me. So indulge my ignorance and my story.
In short a few years ago I had a pharmacy business and I was robbed...twice in one month. Without gory details the insurance companies hammered me and I incurred a substantial debt to my wholesaler. I sold what was left of the company and cleared about $300k in debt with the exception of the replaced products in the form of a $180k note. I was single then and I make a pretty good living but even so I was looking at a $3500/month payment I couldnt make and considered chapt 13 then. I called and attorney etc set it all up and calculated out what the plan would pay the wholesaler $400/month. I asked them if they would accept $600/mo for 5 years in leu of me filing they agreed. Well now..4.5 years later the economy is different and they now say they are "ok" with me paying this until the note is payed off. Ummm...right. Now Im not single and I have 3 stepdaughters and we bought a larger house (teenagers need bathrooms). All that being said I'll be dead before I pay this note off and I'm working extra now just to make ends meet and my wife just like many others had to take a pay cut to keep her job so we've started to get behind on AMEX and even our new mortgage (30days) so for me the writing seems to be on the wall.
Bottom line do I have to go through a chap 13 just to get rid of that note? Is there ANY other way to make them walk away. I still have a building that I have owner financed for the current tenet but It will only net about $20k after the sale...I'd happily give that over at closing but I don't want to if I'm going to have to do a chapt 13 anyway...
My discretionary income will look something like $200/month +/- maybe even less.
Thoughts?
In short a few years ago I had a pharmacy business and I was robbed...twice in one month. Without gory details the insurance companies hammered me and I incurred a substantial debt to my wholesaler. I sold what was left of the company and cleared about $300k in debt with the exception of the replaced products in the form of a $180k note. I was single then and I make a pretty good living but even so I was looking at a $3500/month payment I couldnt make and considered chapt 13 then. I called and attorney etc set it all up and calculated out what the plan would pay the wholesaler $400/month. I asked them if they would accept $600/mo for 5 years in leu of me filing they agreed. Well now..4.5 years later the economy is different and they now say they are "ok" with me paying this until the note is payed off. Ummm...right. Now Im not single and I have 3 stepdaughters and we bought a larger house (teenagers need bathrooms). All that being said I'll be dead before I pay this note off and I'm working extra now just to make ends meet and my wife just like many others had to take a pay cut to keep her job so we've started to get behind on AMEX and even our new mortgage (30days) so for me the writing seems to be on the wall.
Bottom line do I have to go through a chap 13 just to get rid of that note? Is there ANY other way to make them walk away. I still have a building that I have owner financed for the current tenet but It will only net about $20k after the sale...I'd happily give that over at closing but I don't want to if I'm going to have to do a chapt 13 anyway...
My discretionary income will look something like $200/month +/- maybe even less.
Thoughts?
Bankruptcy Wizard
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