Should I call my CCs?

[rcoveles]

If you incured at least 50% of your debt for business use (non-consumer debt), then you can file a Chapter 7. You just need to prove that over half the debt was used for business, it doesn't matter if it was in your name or the business name.
Have your attorney check in to it, and perhaps consult several others.

Well, it definitely was, but we are still over the median income, so I don't think it matters. Besides, if there is a way to continue the business while paying back some $, I'm all for it. The business is still viable - just can't handle paying all of these CCs any longer. If my payments were even HALF of what I'm paying (though I hope for less), I'd be OK.

[forgotten]

I incurred the debt under my business, but all of it was guaranteed in my name, and it is all unsecured CC debt. The lawyer told me it sounds like a 13 due to my wife's income level. I will know more after our meeting on Friday.

If you incured at least 50% of your debt for business use (non-consumer debt), then you can file a Chapter 7. You just need to prove that over half the debt was used for business, it doesn't matter if it was in your name or the business name.
Have your attorney check in to it, and perhaps consult several others.

[rcoveles]

If you have a vehicle loan, and say you get a crappy interest rate because you are late on some of your credit card payments (like you are about to be)... under chapter 13 you sort of get to refinance it under a lower interest rate.

The reason it is called the Till rate is because it is brought to you by courtesy of TILL V. SCS CREDIT CORP. (02-1016) 541 U.S. 465 (2004)

Well that's pretty cool! I guess we should start shopping ASAP! I might even get a decent rate at the moment..or not..guess it really won't matter?

[tigergem]

If you have a vehicle loan, and say you get a crappy interest rate because you are late on some of your credit card payments (like you are about to be)... under chapter 13 you sort of get to refinance it under a lower interest rate.

The reason it is called the Till rate is because it is brought to you by courtesy of TILL V. SCS CREDIT CORP. (02-1016) 541 U.S. 465 (2004)

[rcoveles]

You should be able to get the Till rate by including it in your BK. I am including my new (to me) vehicle in our plan. It will lower our interest rate from 12.74% (ouch) to close to 5%. Attorney advised me that this is standard in our district. He did say we should make at least 2 or 3 payments before filing though...

This is something you should put on your list of questions to ask your attorney just to make sure though. This (advice to get a new vehicle) is an area where all of the attorneys I interviewed gave consistent answers.

I guess that answer was YES

We would probably just put it in my wife's name - she's not filing, and we're not including our house or anything else in the 13..just my CCs. I don't understand really what you meant by Till rate - are you making your car payments part of your chapter 13 payments? You have to bear with me..I never even heard of Chapter 13 really until about 2 days ago. I've been reading nonstop ever since.

[NoTomatoCan]

You should be able to get the Till rate by including it in your BK. I am including my new (to me) vehicle in our plan. It will lower our interest rate from 12.74% (ouch) to close to 5%. Attorney advised me that this is standard in our district. He did say we should make at least 2 or 3 payments before filing though...

This is something you should put on your list of questions to ask your attorney just to make sure though. This (advice to get a new vehicle) is an area where all of the attorneys I interviewed gave consistent answers.

[tigergem]

Yeah if you are going into a CH 13 plan, you need a decent car before you file. And before you do too much damage to your credit not paying. In your wife's name? I dunno. Maybe. Since you are getting it within 910 days of filing, I know you can't do a cram down. I know that under a Ch 13 vehicle loan interest can be reduced to prime + 3%, but I don't know for sure if that applies under the 910 day thing or not.

[rcoveles]

Probably go with liquidation value, because that is what a trustee wants to know... how much would your creditors actually get under a 7 if your assets were liquidated, and you know darn well you wouldn't get retail or wholesale.... but depending on what all you have and your local rules, etc, there is sometimes a wildcard exemption that might apply to the stuff. Your attorney will know that for sure.

I was thinking of just using ebay and/or thrift store values for most of it. I sell mainly novelty t-shirts in the $18 area (retail), usually pay around $7-9 wholesale, and probably couldn't get $4 for a lot of them. I will be curious to see how this plays out. I run a perpetual inventory system, but I know my books and website don't jive, and I've not done a complete physical inventory in years. It's definitely ballpark - I guarantee items to be in stock, and every now and then, they're not, but rarely, so I don't think there is a material difference. They're welcome to come and count the stuff..I've got thousands of items on hand

[rcoveles]

rcoveles - As someone who just recently joined the Certified Deadbeats Club, I feel for you. (tigergem - I LOVE that phrase)

It definitely takes some getting used to. For me the calls started a little over a month ago (right before Christmas... nice). But after a while, you get used to them and realize that when you file they will all go away! I strongly suggest spending some time in the "Collections" section of this forum. There is a lot of good advice there as for what NOT to say and how to deal with the creditor calls. Some people say answer them as the calls might let up for a while (and prevent calls to work/neighbors/family in an attempt to "locate" you), others say just let it go to voicemail.

Also search through the CH13 forum for threads on how to best prepare. There are a lot of good tips that are critical to getting through a successful CH13. (like making sure you have a good, reliable car that will last 5 years)

I was almost where you are with my bank account back in early November, but after not paying CCs and some other debts, I have managed to save up a bit, get a new (to me) vehicle loan, pay insurance (home and auto) for the year, and put myself in a better position to be successful.

There is a wealth of information here that will help you out. Good luck as you begin this process!

Thank you for the info. You bring up a great point - my truck is 14 years old. I was planning on getting some body work done, which was going to cost around a grand, and I am intending to ask the lawyers about this - would it be advisable for me to get a new vehicle NOW, before all of this starts? Should we put it in my wife's name, since she is not filing? OR, is this frowned upon?

[NoTomatoCan]

rcoveles - As someone who just recently joined the Certified Deadbeats Club, I feel for you. (tigergem - I LOVE that phrase)

It definitely takes some getting used to. For me the calls started a little over a month ago (right before Christmas... nice). But after a while, you get used to them and realize that when you file they will all go away! I strongly suggest spending some time in the "Collections" section of this forum. There is a lot of good advice there as for what NOT to say and how to deal with the creditor calls. Some people say answer them as the calls might let up for a while (and prevent calls to work/neighbors/family in an attempt to "locate" you), others say just let it go to voicemail.

Also search through the CH13 forum for threads on how to best prepare. There are a lot of good tips that are critical to getting through a successful CH13. (like making sure you have a good, reliable car that will last 5 years)

I was almost where you are with my bank account back in early November, but after not paying CCs and some other debts, I have managed to save up a bit, get a new (to me) vehicle loan, pay insurance (home and auto) for the year, and put myself in a better position to be successful.

There is a wealth of information here that will help you out. Good luck as you begin this process!

[tigergem]

Probably go with liquidation value, because that is what a trustee wants to know... how much would your creditors actually get under a 7 if your assets were liquidated, and you know darn well you wouldn't get retail or wholesale.... but depending on what all you have and your local rules, etc, there is sometimes a wildcard exemption that might apply to the stuff. Your attorney will know that for sure.

[rcoveles]

rcoveles, you make me laugh, and I don't mean that as an insult.

You are about to become a certified deadbeat. You have permission to be selfish, self centered, arrogant and completely aloof to the "feelings" of your creditors. Trust me when I say this... they do NOT care about YOU, your situation or your feelings. You probably saw the softer side of Sears because you were SUCH a good payer and SUCH a valued customer. Trust me. Miss one payment and they'll turn the dogs loose on you faster than you can blink and your past relationship and history means notathing to them. This is not the 1950s. There is no team loyalty in this game.

"Certified Deadbeat"...I like that. I know you're right, and I'll probably (must) get used to the idea. Most of my shame is because now my poor wife has to modify her lifestyle due to my stupidity, but as they say..for better or worse. Unfortunately, she seems to get more of the worse. If I were alone, I wouldn't care so much. I'd care..but not so much.

SO..as of today, I am officially behind on at least 1 account, and my bank account is overdrawn. I'm meeting the first lawyer Friday, unless I can get in with another before that, and this is just a first meet up. I suppose from there, I choose which one I like, then..? We file? Just trying to get a feel for the timing. I won't be paying any of these cards from here on out, so the crap will be piling up. I would love to have waited till maybe June, because when they do the six month average, December is going to be included, which is a very good month due to Xmas sales. It is really going to distort the numbers upwards. Contrary to that, January was pretty much the WORST month ever, and I'm sure the next few will be equally as horrible. I'm also jonesing about the valuation of my inventory, which will pretty much be my only non-exempt asset to speak of. I've read everything from cost to retail to an average of the two to "liquidation value", which I am gathering what a similar item might sell for on ebay. Depending on the method, I could have very different results. I mean..what should it matter what I SELL something for. If I list a t-shirt for $50, which cost me $10, but can be had on ebay for $12..where do you go?

Sorry for rambling. I think the nervous breakdown is in full swing now.

[tigergem]

rcoveles, you make me laugh, and I don't mean that as an insult.

You are about to become a certified deadbeat. You have permission to be selfish, self centered, arrogant and completely aloof to the "feelings" of your creditors. Trust me when I say this... they do NOT care about YOU, your situation or your feelings. You probably saw the softer side of Sears because you were SUCH a good payer and SUCH a valued customer. Trust me. Miss one payment and they'll turn the dogs loose on you faster than you can blink and your past relationship and history means notathing to them. This is not the 1950s. There is no team loyalty in this game.

[rcoveles]

All you will do is accelerate collection activity and the calls will start sooner. Leave it be. Until you actually file, what you do is none of their business.

I guess. I'm just not used to this. Sure, every now and again, I might forget to pay something and get a gentle reminder, but I've never just flat out stopped paying. It is new and uncomfortable territory, but I really have no choice anymore.

[tigergem]

Interesting - makes sense I guess. I just was trying to avoid all of the phone calls etc.

I do have Credit Union accounts already in place. Tomorrow, I am going to file for debit cards on them.

All you will do is accelerate collection activity and the calls will start sooner. Leave it be. Until you actually file, what you do is none of their business.