Here's my story... I bought into a crooked coffee franchise about
4 years ago. I sold off the assets in April 2007. Thank God I got out. The franchise made all sorts of promises but never was profitable and costs me tons of money. I refinanced my home and ,ofcourse, borrowed on my credit lines to keep things going for my family before and since the coffee shop was sold. Now for the fun part. I was able to juggle everything for the past three years or so because I made good money in my full time job as a mortgage banker.. Last year was the lowest income I've had in 20 years. Things are better now but I dug a big hole for myself. I live in New York. The writing is in the wall. I have about $140,000 in unsecured lines of credit. I have about $20,000 left in the bank. My mortgage and second mortgage payment are $3,350 a month plus $16,000 per year in property taxes. Note: No equity is left in the house. Two cars at $800 in total per month (one a lease with four months left, the other a new loan) I did make a few large puchases at christmas and on vacation in early January for over $500, so I know I have to wait 90 days. I also used one credit line to pay another down for $10,000 in early January. Do I continue to pay the high credit card minimums until I use up my money because it shows good faith in paying them? If I stop paying on, for example, one unsecured line of credit with Bank of Amerca for $90,000 I have been paying on time for four months because they can freeze or take money out of my checking account? Also, I paid back in April and May of 2007 two of my relatives money I borrowed for the coffee shop--I glad it's almost a year and will wait till after then. Should I only pay my mortgages starting now, and car and lease loans, utilities,taxes, phone, etc. and bag the unsecured lines of credit? Also, my income for six months from October 2007 till April 2008 won't be that high. I figure I have to file in May sometime. But I do expect my income to be higher in May, June and July because of the improved mortgage market and commissions coming in then will be pretty good. Is that something to worry about? I can't perdict how well I will do or end up income wise at the end of the year. Should I file or have a lawyer maybe help to settle these high lines of unsecured credit for less by threatening bankruptcy? I know I may have tax consequences unless I am considered insolvent. Any ideas??
4 years ago. I sold off the assets in April 2007. Thank God I got out. The franchise made all sorts of promises but never was profitable and costs me tons of money. I refinanced my home and ,ofcourse, borrowed on my credit lines to keep things going for my family before and since the coffee shop was sold. Now for the fun part. I was able to juggle everything for the past three years or so because I made good money in my full time job as a mortgage banker.. Last year was the lowest income I've had in 20 years. Things are better now but I dug a big hole for myself. I live in New York. The writing is in the wall. I have about $140,000 in unsecured lines of credit. I have about $20,000 left in the bank. My mortgage and second mortgage payment are $3,350 a month plus $16,000 per year in property taxes. Note: No equity is left in the house. Two cars at $800 in total per month (one a lease with four months left, the other a new loan) I did make a few large puchases at christmas and on vacation in early January for over $500, so I know I have to wait 90 days. I also used one credit line to pay another down for $10,000 in early January. Do I continue to pay the high credit card minimums until I use up my money because it shows good faith in paying them? If I stop paying on, for example, one unsecured line of credit with Bank of Amerca for $90,000 I have been paying on time for four months because they can freeze or take money out of my checking account? Also, I paid back in April and May of 2007 two of my relatives money I borrowed for the coffee shop--I glad it's almost a year and will wait till after then. Should I only pay my mortgages starting now, and car and lease loans, utilities,taxes, phone, etc. and bag the unsecured lines of credit? Also, my income for six months from October 2007 till April 2008 won't be that high. I figure I have to file in May sometime. But I do expect my income to be higher in May, June and July because of the improved mortgage market and commissions coming in then will be pretty good. Is that something to worry about? I can't perdict how well I will do or end up income wise at the end of the year. Should I file or have a lawyer maybe help to settle these high lines of unsecured credit for less by threatening bankruptcy? I know I may have tax consequences unless I am considered insolvent. Any ideas??
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