New Here...questions...

[imoverit]

What a great resource!! I have been spending the last week reading months of personal experiences on here so thank you for that!

I would like some opinions on my situation.. I have spoken to a lawyer but haven't done anything about it...

We are 100k in unsecured credit card debt
owe 300k in 2 mortgages on our home... currently sale price MAYBE 175k
2 car loans (would want to keep) they aren't fancy, but they are newer
1 timeshare (small payment would like to keep, but only if it didn't cause a problem, it has no equity...lucky to sell it for what we owe)

DH and I currently gross about 100k so as it stands now we can't file chapter 7, which would be the quickest way to get this nightmare over with.
We aren't really behind in any of our bills yet and have continued to use our credit cards for essentials while we figure out what our plan of action is. DH has a good stable job making about 60k (we live in FL, means test is about 68K for family of 4) I earn about 40-50k depending on the commission. My job is about 35% commission. I work in one of the big financial institutions that I see often mentioned on here! My job is utterly miserable. Since we have recently been "merged" it surely only going to get worse as sales pressure and time devoted continues to grow in order to be lucky enough to keep our jobs. I work 45-50 hours a week and hate hate hate to go to work in the morning. The thought of staying there for 5 years for a repayment plan makes me want to hide under the covers. We want to let it all go (except the cars)... house everything. Our son is getting in some trouble at school we would like to move to a better school district, my DH also commutes 1hr each way. I would love to be able to spend more time with the kids and help them with their schoolwork and be more involved instead of the rat race I face at work every day. We want to let the house go and move closer to his work, switch schools for the kids and have a FRESH start and rebuild. I also started going to school again to finish my degree to give me a better edge in this economy. We are torn between chapt 13 and keep the house, possibly strip the 2nd mortgage and pay somewhat of our creditors back. That seems to be the "right" thing to do... But I WANT to turn my keys in at work come home pack, rent a house and move and not look back! Has anyone had any experience with quitting their job in order to file a chapter 7?? Sorry for the long post... input is appreciated... It was more of me just wanting to get it off my chest and actually say it out loud.

[AngelinaCat]

Hi imoverit: Welcome to the forum. Please give me a little time to read your entire situation before I actually make too many comments. One, though, I understand you wanting to quit your job and chuck it all to qualify for a 7. I would say be careful what you wish for. You might get it in this economy.

'Hub (my husband who posts also under 'AngelinaCatHub') were actually planning a 13, then 'budget cuts' did away with my FT job, and I am now on emergency unemployment and what little I get from a PT job. 'Hub is semi-retired and on SS, but cannot get work now due to health reasons.

And right now we are actually very thankful that we eneded up going 7.

Anyway, aside from all that, I would ask you now to look at your financial situation--are you and DH communicating okay on all this?--and see what you can get rid of now. If I were you right now, I would drop that time-share like a hot rock.

At this point, I will stop and let you think about this, but I will get back tomorrow.

Good luck.

[RedLight]

I know it seems like you are between a rock and a hard place, but you can make it through. For what you have provided, there are a few questions that only you and your DH can answer together. IF you left your job to file a chapter 7, which is definitely the best choice between the two, you would have to include 6 months of pay stubs for the both of you. This means that you would have to forgo your income for six month prior to filing. Can you make it that long on just his income? Also, if you do this, you will stop paying on all CCs and that timeshare. This would free up some cash, but will it be enough?

My DW lost her job as it was eliminated, which forced us into BK. However, it also allowed us to drop below the median income as your lack of job would do. By the time we had met with our atty and got the case filed, it had been six months. So, my advice is to continue your education, speak with several attys, and if you know this is eminent, make your choice quickly as it does take time.

[Tbornetun]

I just did the math, based on you and your husband each currently making $50,000 per year. Since the means test is based on the prior 6 months of income, if you were to stop working at the end of October, you would be below the median by sometime in February. About 4 months from the time you stop working.

[JRScott]

How much is the first mortgage on the house?

Remember to strip in a Chapter 13 the second mortgage the first has to be equal to or greater than the value of the house.

You'll have to lose the time share in a Chapter 7.

Basically going by what you said above I don't see how you are even treading water now. My initial idea is that your basically charging a great deal of necessities like food and gas and then just paying the minimums on the credit cards. At some point you'll get to the point this doesn't work anymore.

You could use the excuse of your son's trouble at school to quit your job and become more active in his life. That is helping with home work. Making sure your there for the kids etc. You would have to wait several months though and possibly as much as 6 months for the income to fall off the 6 month look back. Lots of people make similar choices when planning a bankruptcy.

Keep in mind also that the car payments that might seem reasonable now, are they reasonable for a household income of only 60k a year?

If you do decide the Chapter 7 route, I would not reaffirm the vehicles in case they become a burden in the future so that you can let them go.

You might start looking around at rental properties and see what you can get and how much, it might make planning much easier.

[albacore44]

Same boat

I am almost in that same boat. My numbers are about the same. I live in california, with 4 in the household. My wife has been working temp jobs through an agency for over a year, with employment compensation in between assignments. I took the means test and my best chance at a 7 is in feb-march 2009. My income is above the range, but after the expenses that free calculator gives you , i'm really close, like $200 or less a month disposable income. since im so close is there any way to add additional expenses to push it over the line into a 7 ?? my utilities are much high than the # the give you , but I added in the extra. Mortgage is much higher than the housing allowance. I added in the additional amount. Can you add more for the car allowance ?? i have a long commute and use a lot of gas every month ?? Any help here is gladly accepted.

[Tbornetun]

You can add it if you can prove it. Monthly receipts, etc. to prove your actual auto expense.