What all happens?

[jvm]

Hello jvm - it might be advisable for you and your husband to sit down with a bankruptcy attorney and discuss what is possible in your case - and then come back to the forum and compare notes (so to speak) with others in your situation.

The complication in your case, if what you wrote is the total debt situation, is that most of your debt is secured. You say you only have $2100 in credit card debt - that is practically nothing in terms of average unsecured indebtedness.

It is likely that your credit will suffer even if you do not file for bankruptcy, since you are later on your cc payments already. You should check out the food stamp program in your state - a family of 5 with your stated income might be eligible for assistance. It's no shame, and it is very discreet and done with an EBT card so no strangers will know your status when food shopping.

I know this is irrelevant, but you say you are in Georgia but the state you registered with the bk forum says Hawaii. Big difference!

First off thanks for letting me know about the state. i must have scrolled down a notch. We have tried filing for foodstamps. We were denied. I know 2100$ isnt much of a credit card debt but each month it grows becuase we cant pay it. we have stopped paying it to buy groceries. We have even been to a food bank. We make enough to pay all our bills..but it doesnt leave us much for groceries at all. My husband just barely gets by for gas money for work. i do what i can to make things stretch..but if anything comes up like a dr copay or if the car needs an oil change...we have to take it out of grocery money. We should of never signed on with the van. thats whats hurting us. if we could get rid of that we would be ok. But ive tried selling and i cant seem to sell it. I called a lawyer today, they were supposed to email me a packet , but i never recieved it.

[bcohen]

The best option with regard to rapidly depreciating secured property is to redeem. You would file a motion with the bankruptcy court offering a reasonable valuation for the used furniture (such as 20-25% of its original retail price) and if the judge accepts your valuation, you pay that amount and the so-called "security interest" is released. Used furniture is practically worthless, and although some companies do repossess when a debtor defaults, they typically do this out of spite, and usually scrap the furniture rather than resell it.

NOTE--that this only applies if you file for bankruptcy, and I am not saying that bankruptcy is in your best interest at this time.

[AngelinaCat]

how would i do that exactly? im not doing rent to own, if i return it they will sell it for cheap then i will have to pay the difference. i opened a revolviing line of credit with them. and how would i buy more ..if i cant afford to buy anything else?

I would cancel everything, and have the store come and pick it back up. Meanwhile you will have a few days of wriggle room. You can make other arrangements in the meantime. And it doesn't have to be brand new. Clean and serviceable is what you want.

Now, if you do decide to keep the furniture, do NOT sign a reaffirmation agreement, otherwise there will be no point in you filing. You will still be on the hook for this debt.

[kornellred]

Hello jvm - it might be advisable for you and your husband to sit down with a bankruptcy attorney and discuss what is possible in your case - and then come back to the forum and compare notes (so to speak) with others in your situation.

The complication in your case, if what you wrote is the total debt situation, is that most of your debt is secured. You say you only have $2100 in credit card debt - that is practically nothing in terms of average unsecured indebtedness.

It is likely that your credit will suffer even if you do not file for bankruptcy, since you are later on your cc payments already. You should check out the food stamp program in your state - a family of 5 with your stated income might be eligible for assistance. It's no shame, and it is very discreet and done with an EBT card so no strangers will know your status when food shopping.

I know this is irrelevant, but you say you are in Georgia but the state you registered with the bk forum says Hawaii. Big difference!

[jvm]

how would i do that exactly? im not doing rent to own, if i return it they will sell it for cheap then i will have to pay the difference. i opened a revolviing line of credit with them. and how would i buy more ..if i cant afford to buy anything else?

[AngelinaCat]

Hi jvm: welcome to the Forum!

First of all, read all of the 'stickies' in the CH7 and CH13 and the General BK Talk boards. Educate yourself as much as possible about the process. It will be confusing as all get-out at first, but the more you read, sooner or later it will become clearer.

Next, let's see if we can do something about your expenses. Go to some used furniture stores and see if you can replace some of this very expensive rent-to-own stuff, with something that you can pay for outright and get rid of that payment.

'Hub and I once furnished an apartment completely out of the green-box dumpsters in the apartment complex. And they were nice, clean items, too. I hated to leave them behind when we moved back home.

[jvm]

Hello i will be honest i dont know much of anything about bankruptcy.

Here is our situation, monthly income is $4013.72 this is based on the past 6 months which inclueded some overtime //now overtime is not allowed.(before taxes) bring home is around 2400.00 per month(realistically today)

we are a family of 5 living in georgia

Our monthly expenses which are utilities, minivan payment, mortgage, car insurance, tithes, child support, cc and furniture store account= 2052.00 minivan payment is 368 per month (this is actually what we cant afford, but we owe 16666,000. and have tried selling with no luck)

CC is 2 months behind currently at 221.00 per month with a balance of 2100.00

Badcock Furniture is at 145.00 per month with 2600.00 balance left

Mortage is 478.00 per month (with 27 years left)

By the time we pay all of our bills, and gasoline for hubbys car for work/we dont have enough money for groceries...at least not to get all we need.

we have a baby so there is a clothing expense. and diapers and a kindergarten. who also needs clothes every 6 months at least.

We know we have made foolish financial choices. now we just want relief. if we qualify for chpt 7 what happens? do we loose our home? I dont care about loosing the van as long as we dont still have to pay back or it wouldnt make sense to do a banckruptcy..

Do we have to sell anything in our home ie furniture, electronics?

Also wanted to add that i dont/cant work because of hubbys hours, i wont have a babysitter. And he cant look for 2nd employemt becuase where he works doesnt allow him to work anywhere but fast food, and his availability isnt what they want.