Where to begin?

[delightfully]

Wow, I can't believe, I am on this thread, but it is time to expolore our families finanacial options.

I got laid off about 2 years ago and while my husband still is working, his commissions haven't excactly been stellar. We live in the state of Indiana, do own our home but purchased in 2006 and I am sure with the way the real estate market is and the fact that we have gone without AC for the last 2 years we are definitely upside down on it. We do own 2 crappy cars a 1999 VW Passat and 2001 Ford Windstar which I am sure have a next to nothing value and did purchase a 2006 Minivan.

We have survived on credit cards the last couple of years. We have 3 children and have managed to stay current on our mortgage and car payment and really aren't behind on any bills YET, but the future is looking bright. We did have a pretty big unsecured debt load prior to me getting laid off and of course I didn't see the lay off coming and are credit card bills have continued to grow.

We are also partners (an LLC) with 3 other families with property that we purchased that prior to the economic disaster we believed we could generate income on it. We have continued to stay current on the land payment for that propertty as well. Kids need braces and I need dental work but there is just no extra money.

I am strongly considering Chapter 7, but don't want to lose my house or cars and was wondering what the implications of the LLC property would be? Anyone, who has recently filed that could give me some insight on what they know.

I am not sure how to get started, saw some things online where they put the paperwork together for you, and you file, or should I go with a local attorney and how much would I expect to pay.

I just want to try to get ahead of this game before it spirals out of control! Thanks for any insight and advice!

[AngelinaCat]

Hi delightfully, welcome to the forum. I moved your post into a thread of its own so that it would be easier for the members to see and respond to. I also broke your post into paragraphs so that it would be easier to read.

You have many questions. I would advise starting with reading the 'stickys' that appear at the head of each board--particularly those in the Chapter 7 forum, since that is the chapter that you are considering. Do not post questions at the end of them, because they will be apt to get lost in threads that are long and older. You may wish to get the Chapter7 guidebook from nolopress.com. It is written in plain English and will help immensely. You can purchase a copy in a download-able PDF format, for around $25.00, though some members here have found coupons that help with the cost.

Good luck to you and welcome to the forum.

[tcreegan]

Hi delightfully,

If there is less than 15K equity in your home, you won't lose it in the BK. (might even be 30K if joint filing...not sure)

You can exempt (keep out of the BK) around 18K of personal property for a joint case in Indiana. This should be enough for the "crappy" cars and your household stuff. For the non-paid-off car, it depends on how much equity you have in it.

A personal BK will handle any debts from the LLC that you personally guaranteed.

I am not sure how to get started, saw some things online where they put the paperwork together for you, and you file, or should I go with a local attorney and how much would I expect to pay.

Forget the 'we fill out the paperwork' outfits, you can do that just as easy yourself. Go for a good local BK attorney. Get your basic numbers together and schedule some consultations. Shopping around will give you a good idea of the going rate for a BK.

After reading lots of posts complaining about attorneys, I put together a little list of the sources of friction, good things to discuss before hiring someone.

Communication: phone/email/face-to-face, secretary/paralegal/attorney, turnaround time on responses
Organizaton/work ethic: dot all i's, cross all t's or 'good enough,' document filed ASAP or 'before the deadline'
Competence: know the local trustees, judges, filed cases like yours, up-to-date on relevant court rulings
Retainer/Fee: exactly what is covered, what is extra, what to expect as 'extra'

Good luck, hope you can choose the best path for you and your family!

Tom in Colo