*Deep Breath*
Well... we received the analysis from our attorney today. He believes that he can get us into Ch7 even though we're slightly over the state median income due to our virtually non-existant disposable income.
He did, however, provide some obstacles to deal with:
(1) We have excess equity in our vehicles and suggested either refinancing them or trading in one on a newer vehicle. Frankly we'd already considered the idea of trading in my wife's gas-guzzling SUV with the price of gas these days, so that's not so far fetched. The problem is that our credit is probably already damaged enough that if we CAN get financing on a replacement vehicle the rate will be double-digits. Then if we were able to do so and keep our payments approx. the same as they are now for her vehicle, the insurance and tags would increase substantially due to being a (relatively) newer vehicle - resulting in more negative disposable income.
(2) There is ~$17k in unsecured CC debt that was used to pay the IRS. He says that is "potentially not dischargable", but it will be up to Citibank to object to it otherwise we'll include it in an attempt to slip one by. If Citibank does object then we'll exit the BK with no disposable income and a $17k CC bill that we cannot pay.
(3) I have an AMEX card that I use only for business purposes. I can trace every payment to them directly to a corresponding expense report filed/paid by my employer. We may have to document this within an inch of it's life for the trustee to avoid "preferrential payment" issues. My biggest fear is that whether I leave AMEX out of the mix (with a $0 balance) or re-affirm them, that they're going to cancel my card when they get wind of the BK and thus render me unable to travel for business - resulting in me losing my job.
(4) My other big fear is that the court and/or trustee will ask to see pay stubs beyond our file date or 341 mtg that may include commissions paid. The attorney says that the amts I'm anticipating will not be enough to off-set the overall plan, but my concern is that the trustee will look at it like "if you've got other projects coming in for which you'll be paid commissions, then your income will increase and I WANT IT - Case Dismissed". Problem is I'm just starting with a company where the sales cycle in very long, so it'll take my a couple of years to get over the hump of momentum in my pipeline.
(5) After having paid the retainer, we now have to generate the remainder of his estimated fee along with the filing/court/production fees to be paid in full before proceeding. Did I mention the lack of disposable income....????
(6) We go through all this BS of changing cars, paying $2k in atty fees and our case is not approved..... money/time/stress pissed away and in worse shape then when we started.
(7) We go through all this BS and actually increase our secured debt load (by trading for a newer vehicle with no equity), get discharged and then I lose my job (see #3 or some other case of kaka happens) then we're really screwed because we can't file again and lose everything and have to go live in a shelter or a Whirlpool box on the street.
Believe it or not, I'm seriously considering NOT filing now and taking my chances with the collectors. The attorney said that he's handled creditors filing lawsuits to collect before and we could approach it that way if needed.
.
.
.
If I weren't already bald, I'd pull my hair out. I can actually feel the stress on my heart too - but I'm well insured, so that could be a blessing.
I'm not necessarily looking for answers... I no longer believe they exist... I'm just venting to keep from exploding.
Well... we received the analysis from our attorney today. He believes that he can get us into Ch7 even though we're slightly over the state median income due to our virtually non-existant disposable income.
He did, however, provide some obstacles to deal with:
(1) We have excess equity in our vehicles and suggested either refinancing them or trading in one on a newer vehicle. Frankly we'd already considered the idea of trading in my wife's gas-guzzling SUV with the price of gas these days, so that's not so far fetched. The problem is that our credit is probably already damaged enough that if we CAN get financing on a replacement vehicle the rate will be double-digits. Then if we were able to do so and keep our payments approx. the same as they are now for her vehicle, the insurance and tags would increase substantially due to being a (relatively) newer vehicle - resulting in more negative disposable income.
(2) There is ~$17k in unsecured CC debt that was used to pay the IRS. He says that is "potentially not dischargable", but it will be up to Citibank to object to it otherwise we'll include it in an attempt to slip one by. If Citibank does object then we'll exit the BK with no disposable income and a $17k CC bill that we cannot pay.
(3) I have an AMEX card that I use only for business purposes. I can trace every payment to them directly to a corresponding expense report filed/paid by my employer. We may have to document this within an inch of it's life for the trustee to avoid "preferrential payment" issues. My biggest fear is that whether I leave AMEX out of the mix (with a $0 balance) or re-affirm them, that they're going to cancel my card when they get wind of the BK and thus render me unable to travel for business - resulting in me losing my job.
(4) My other big fear is that the court and/or trustee will ask to see pay stubs beyond our file date or 341 mtg that may include commissions paid. The attorney says that the amts I'm anticipating will not be enough to off-set the overall plan, but my concern is that the trustee will look at it like "if you've got other projects coming in for which you'll be paid commissions, then your income will increase and I WANT IT - Case Dismissed". Problem is I'm just starting with a company where the sales cycle in very long, so it'll take my a couple of years to get over the hump of momentum in my pipeline.
(5) After having paid the retainer, we now have to generate the remainder of his estimated fee along with the filing/court/production fees to be paid in full before proceeding. Did I mention the lack of disposable income....????
(6) We go through all this BS of changing cars, paying $2k in atty fees and our case is not approved..... money/time/stress pissed away and in worse shape then when we started.
(7) We go through all this BS and actually increase our secured debt load (by trading for a newer vehicle with no equity), get discharged and then I lose my job (see #3 or some other case of kaka happens) then we're really screwed because we can't file again and lose everything and have to go live in a shelter or a Whirlpool box on the street.
Believe it or not, I'm seriously considering NOT filing now and taking my chances with the collectors. The attorney said that he's handled creditors filing lawsuits to collect before and we could approach it that way if needed.
.
.
.
If I weren't already bald, I'd pull my hair out. I can actually feel the stress on my heart too - but I'm well insured, so that could be a blessing.
I'm not necessarily looking for answers... I no longer believe they exist... I'm just venting to keep from exploding.
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