Game Over ... now I have questions...

[fljb]

Hi - kinda new here and just trying to learn as much as i can. Here's the basics..

Been robbing Peter to pay Paul for almost 2 years and now there is no more to borrow - since our CC's dropped our limits to whatever we owed My work has been steady but DH who earns way more than me has not - contractor (construction) and has not taken a real paycheck in about 2 years. We had enough 'credit' to buy us another year of this dry spell until they lowered our limits ... now the game is OVER.

Problem is they basically all did this at once and we have really no way to even pay the minimum payments while we save for retaining a lawyer and try to keep up with the 2 mortgages - plan to keep the house if possible. anyway we made a few large purchases & cash advances before they dropped our limits (to pay for basics like housing and to repair my car) if we wait the 70/90 days before filing CH7 - will it matter that we have not made a min payment since those transactions?

I know I will have many more questions .. .and will most likely become a pest on here !! Thanks in advance for any information

not sure if this matters but I am in FL and have about $140K in CC debt - which i am sure is rising rapidly - due to late fee's and REALLY high interest! Never thought I'd be in this sinking boat ....

[AngelinaCatHub]

Dear ‘pest here’ otherwise known as “fljb”: Welcome and you are in the right place. We have been or are all in the same boat.

Stop paying anything that you do not want. All CC’s are over with. Cash only. Do not reaffirm anything you cannot pay for if it gets worse. (It probably will after the election). Start to save for your lawyer and start looking right away. The line is going to get longer.

Purchase the C7 book online 17 bucks for pdf file with all the forms you need. Go pro se if you can handle it.

Make no apology for having to bk as it is business only. You sure won’t be alone in our near future. Loving, and in faith, ‘Hub

[fljb]

so it will not matter that we did not pay a min payment so long as we wait the 70/90 day thing - which we will easily before filing - ??

I am going to get that book right now!!

Thank you!

ps but I will most likely still be a pest ... ;)

[fljb]

I would be to scared to go 'pro se' ... yikes ... no way!! DH has a business - which is a corporation in FL ... it should be OK right - no work/ no cash in it but has a few assets (truck, office) but owes tons on the office ... but we would be filing a personal CH7 so that is protected right??? sorry I am so dense ... have not started my homework!

oh and why is FL car thing only $1,000 - that seems so low?

[AngelinaCat]

Basically, you know you are going to be filing its just a question of when. So it is kinda foolish to keep trying to make minimum payments that you know you are going to have discharged. Like throwing good money after bad. So the general advice is to SAVE that money that you used to make the minimum payments and use it for your attorney fees, or if you are comfortable going pro se, then save that money for your emergency fund.

Good luck, and welcome to the forum.

[ansky0007]

We are in the same boat just in a much larger boat... $330k in CC alone. I have also been borrowing from one to pay the other. I informed my lawer of this and he said as long as there is a paper trail (Bank Statements, Etc.) showing where each advance went in paying my bills and other CC's that I should not worry since its not like I took an advance and I am trying to pocket some money. I have no money left and we will be filing next month and we only stopped paying last month.

[fljb]

I basically stopped making payments last week .. the calls started immediatly ! My mortgages are close to $4k combined so it should be easy to show where the $$ went! I plan to wait a bit longer before filing ... I may start looking for an attny in Nov though. I wonder how much they charge here in FL? I'd would not be confident enough to go Pro Se ....

anyone know if FL has any wildcard exemptions????????? I'd be curious as to how much that is!! Thanks!!!

[AngelinaCatHub]

I basically stopped making payments last week .. the calls started immediatly ! My mortgages are close to $4k combined so it should be easy to show where the $$ went! I plan to wait a bit longer before filing ... I may start looking for an attny in Nov though. I wonder how much they charge here in FL? I'd would not be confident enough to go Pro Se ....

anyone know if FL has any wildcard exemptions????????? I'd be curious as to how much that is!! Thanks!!!

[AngelinaCatHub]

We are in the same boat just in a much larger boat... $330k in CC alone. I have also been borrowing from one to pay the other. I informed my lawer of this and he said as long as there is a paper trail (Bank Statements, Etc.) showing where each advance went in paying my bills and other CC's that I should not worry since its not like I took an advance and I am trying to pocket some money. I have no money left and we will be filing next month and we only stopped paying last month.

Errrrr.... 330K? How'd you do it? You deserve some sort of recognition here. WOW and good fortune to you. 'Hub

[fljb]

I agree - $330K in cc alone!! wow ... at one time we could of had 160-170K in CC before they dropped our limits like a bomb!! They must of seen this coming!! '

Thanks Cathub for assuring me I am not a pest ... I have problems with getting overwhelmed in things and asking tons of questions ... some that don't even apply to me - I am just curious as I learn more about something!! Some form of OCB I am sure! LOL

I do have another ? about property you can keep in FL ... it says 1/2 acre in a municipality or 160 continous acres elsewhere .. we live in a very rural area and have 10 acres and a tiny house that we owe more than it's worth! because we in in the county not city we are good on the continous acre thing right??? Part of me wants to put the house in the BK anyway since I doubt we'll be able to keep it in the long run with both mortgages (over $400K) .... so many decisions!! But DH keeps saying the equity will come back when the market recovers ... but when will that be!??? Gee wiz I keep thinking of more stuff!!!

[ansky0007]

Errrrr.... 330K? How'd you do it? You deserve some sort of recognition here. WOW and good fortune to you. 'Hub

Company I worked for went bankrupt and I lost my $90k job, After a year of looking for another job and not finding one my credit cards started getting used to pay bills and the mortgage. Since I could not find a job I decided to start my own business and lost almost $70k the first year getting the business up and running using credit cards . After 3 years my business is now making money finally and I will make around $80k this year but with the economy all my credit lines were reduced and I could no longer make the payments since all my available credit was removed. (Still had around 80k available before the credit card ccompanies started reducing all my limits)

Based on my business growing 30% a year... I figured I would eventually when making enough money be able to start paying all the debt back. Unfortunately once the credit freeze started 2 months ago I lost my available credit and everything started collapsing.

Still have around $100k equity in my home and I am trying to save it. My lawyer is very good and we are trying to do a Chapter 7 and keep the house. In the end if we cant work out a deal with the trustee to keep it we will go Chapter 13 with around $75k payback over 5 years. House is worth around $510k, and we owe around $400k, We have $40k in home exemptions and it would cost the trustee around 10% to sell it so there would only be around $10k left after they sold it. Our lwayer said he would work out something with the trustee that if required we will pay the $10k they would have made if they sold it over some sort of payment arangement.

[AngelinaCatHub]

I agree - $330K in cc alone!! wow ... at one time we could of had 160-170K in CC before they dropped our limits like a bomb!! They must of seen this coming!! '

Thanks Cathub for assuring me I am not a pest ... I have problems with getting overwhelmed in things and asking tons of questions ... some that don't even apply to me - I am just curious as I learn more about something!! Some form of OCB I am sure! LOL

I do have another ? about property you can keep in FL ... it says 1/2 acre in a municipality or 160 continous acres elsewhere .. we live in a very rural area and have 10 acres and a tiny house that we owe more than it's worth! because we in in the county not city we are good on the continous acre thing right??? Part of me wants to put the house in the BK anyway since I doubt we'll be able to keep it in the long run with both mortgages (over $400K) .... so many decisions!! But DH keeps saying the equity will come back when the market recovers ... but when will that be!??? Gee wiz I keep thinking of more stuff!!!

[fljb]

Project girl!! love it!
First the prop is no where near $45K per acre ... we bought all 10 for $50 - granted that was a long time ago - but the land might be $100K ... I've looked into refin. into one mort. since our 2nd is so high and we pay interest only ... but the bank says we owe more than its worth so no go. Claim they have 'restructure' programs but only for people in default . which we are not at the moment! but if they restructed our loans - this would help if things 'get worse' - is that possible!?? LOL

I like the house and all but here's another wrench in my plan .. I want to move out and file for divorce soon. Its no secret - but with no money I can't. We are trying to be amincalble about this and make sure neither of us gets screwed too bad financially. (17 years of marriage) He wants to keep the house, but i don't think he can afford it and pay me child support etc.... so I am leaning more on putting it in the BK - which we will most likely file before any divorce. I plan to rent for a few years anyway till my credit recovers.
House is homesteaded for sure.

Can you say stress in my life!! wow!!

Plus I need to find out about his business assets ... if he is a Corporation he's protected right? I just read in the NOLO book that some Typical Nonexempt property is Business Assets ... again there's not much (mostly more DEBT) but i am sure they could find some!

boy never thought I'd spill so much on a chat site!! Funny what you can do behind a keyboard!

[AngelinaCatHub]

OK, daughter, I can’t answer your questions about business and the like. But it is easy in Florida no fault divorce. I think it costs about 280 or whatever. Now if your soon to be ex can pay child support and the house, let him have it. Child support is NOT dischargeable in any case. My personal opinion is to get the divorce first even if you live together. Remember at this time both items are business decisions. PLEASE keep it amiable. It will reduce stress on both of you. BK is no fun, but can be relieving after the stress. You will have to understand, this is a new start given by Congress. It will also be a new start for both of you in another way. Best advice is both see a lawyer, be right up front with him and tell all. Hide nothing. Go for 7 if you can, a complete release and new start. I hope this helps you both. ‘Hub

[fljb]

THanks for all your help!! Will be back tomorrow!
Wonder if we cant get one lawyer and do a Div/Ch7 combo? ha ha!!

I know we need to see a lawyer ... just need some cash so they willl listen.

why do you think filing for Divorce first? what benefit?

Pretty sure we qualify for ch 7 - our 07 taxes had us in hole almost $20K and nothing has changed ... only worse in 08

thanks again ... off to bed!