We have retained an attorney to file ch 7. could possibly be pushed into a 13, although don't necessarily want to do that.
We have provided our quesitonnaire and paperwork to the attorney and he's created our draft petition.
One item listed on our petition is a pawn loan for my engagement ring (about 1k) and a 32 in flat screen (about 200, being generous). We took the pawn loan to make a 2-month mortgage payment this past summer, and have been slowly, oh ever so slowly, trying to whittle down the pawn loan principal balance.
We must either redeem our pawn loan in a couple of days, pay the outstanding interest and roll the principal, or surrender to the pawn shop. I really don't want to surrender it, especially since I've been paying crazy interest the last few months to get it out, and of course there is that sentimental value bug.
We have the lump sum to be able to pay the principal and outstanding interest (about $950 total). I asked my attorney if there would be any negative implications related to the bk for doing that.
He responded rather quickly (and perhaps without consulting our case notes) that doing so would turn us from a non-asset to an asset case. I asked why but have not received a response.
Anybody have any guesses why he might have said that? Our only jewelry is my wedding band (about $150 pawn value) and the engagement ring (about $1000 pawn value). I would think we would be under the exemption for jewelry.
Is it the act of paying the money to the pawn shop the piece that might jepordize our non-asset status?
Secondly, and boy I am just spinning in what-to-do's, my husband is starting a new job in December. Along with the new job comes about an $18,000 annual raise.
Plus his daily commute will decrease from about 150 miles roundtrip per day to around 100.
We are going to see increased income and maybe a little less expenses related to fuel costs.
Our unsecured debt is not very large -- maybe less than $20k. Our big issue is our mortgage, which we are behind by about 7 months and we've had a NED filed. We intend to stay in the house, but suspected we wouldn't be able to get current in the time it would take to file and discharge a 7.
Now with the increased income, in all reality we probably could work out some sort of payment plan with the mortgage company. But we are underwater about $50k (probably more once they add the foreclosure attorney's fees). Would be okay with walking.
Does it even make sense file bk if we can work things out with all creditors? Should we seriously try to do a short-sale? Are we playing the BK card much too soon?
If it matters, we are an FHA insured loan with a HUD second lien from a partial claim.
I apologize for the long-winded post, and hopefully some of you will find bits and pieces you can offer advice about.
This post is indicative of where my head is right now....swimming in tons of what-ifs, should-we's, what-about's, etc.
Thank you in advance for any input!
We have provided our quesitonnaire and paperwork to the attorney and he's created our draft petition.
One item listed on our petition is a pawn loan for my engagement ring (about 1k) and a 32 in flat screen (about 200, being generous). We took the pawn loan to make a 2-month mortgage payment this past summer, and have been slowly, oh ever so slowly, trying to whittle down the pawn loan principal balance.
We must either redeem our pawn loan in a couple of days, pay the outstanding interest and roll the principal, or surrender to the pawn shop. I really don't want to surrender it, especially since I've been paying crazy interest the last few months to get it out, and of course there is that sentimental value bug.
We have the lump sum to be able to pay the principal and outstanding interest (about $950 total). I asked my attorney if there would be any negative implications related to the bk for doing that.
He responded rather quickly (and perhaps without consulting our case notes) that doing so would turn us from a non-asset to an asset case. I asked why but have not received a response.
Anybody have any guesses why he might have said that? Our only jewelry is my wedding band (about $150 pawn value) and the engagement ring (about $1000 pawn value). I would think we would be under the exemption for jewelry.
Is it the act of paying the money to the pawn shop the piece that might jepordize our non-asset status?
Secondly, and boy I am just spinning in what-to-do's, my husband is starting a new job in December. Along with the new job comes about an $18,000 annual raise.
Plus his daily commute will decrease from about 150 miles roundtrip per day to around 100.We are going to see increased income and maybe a little less expenses related to fuel costs.
Our unsecured debt is not very large -- maybe less than $20k. Our big issue is our mortgage, which we are behind by about 7 months and we've had a NED filed. We intend to stay in the house, but suspected we wouldn't be able to get current in the time it would take to file and discharge a 7.
Now with the increased income, in all reality we probably could work out some sort of payment plan with the mortgage company. But we are underwater about $50k (probably more once they add the foreclosure attorney's fees). Would be okay with walking.
Does it even make sense file bk if we can work things out with all creditors? Should we seriously try to do a short-sale? Are we playing the BK card much too soon?
If it matters, we are an FHA insured loan with a HUD second lien from a partial claim.
I apologize for the long-winded post, and hopefully some of you will find bits and pieces you can offer advice about.
This post is indicative of where my head is right now....swimming in tons of what-ifs, should-we's, what-about's, etc.
Thank you in advance for any input!
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