New to the forums - lots of info here...
Here are our personal details as I feel they relate to a possible BK, feel free to give your personal opinion if we should file BK (or not), and the timing. If more info is needed or you have any questions, please feel free to ask.
1) I am a finance manager in the auto industry (15 yrs experience). DW is a homemaker. We have 5 children ranging in age from 2-13.
2) I have earned a large income for many years (but did not save), then that started to decrease rapidly in Sept of last year. In Early November my employer unexpectedly discharged me... I was on unemployment until mid January. I have never been without work in my life before - Prior to the economic downturn, I was usually getting a call every month or two if I want to make a change for more money (I was with my previous employer for 3+ years).
3) Since returning to work, it looks like I will be averaging $6-7000/mo in income, which is about half of what I was making a year ago... In July it could be as much as $9-10,000/mo or more, but it depends on how many vehicles the dealerships sells.
4) Spoke to an attorney who does ch7 and ch7 only (his fee is only $400 also), based on an intial phone interview, he indicated I would likely qualify for a 7, as the basis for qualification is a $98000 annual income cutoff (based on an average of the last 6 months income).
5) 1st mortgage is in pre-forclosue (~14000 in arrears, 5 months), 2nd mortgage is 75 days behind (~900). Currently we have a strong desire to keep the home, if our modification request can be granted. There is little equity there though, so I suppose we could leave it and rent if there is no other choice.
6) 4 auto loans / leases
i) Leased liesure vehicle 38000 owed, 25000 value - $422/mo payment and I have someone willing to take over the lease if I pay $2300 in back payments
ii) Work vehicle daily driver 45mpg 16500 owed, 11000 value - 349/mo payment and the lender wants $1047 or the car back in the next couple of days
iii) Family minivan daily use $4500 owed, 4000 value - will be keeping, and it's current
iv) Previous mivivan, not being driven $4800 owed, 3000 value - $300 to be paid asap if I want to keep it (only if we are not filing BK)
7) Civil Judgement for $6300, $5100 balance and they placed a lien against the home last year - BK attorney says for additional monies he can motion the BK judge to void the lien...
8) Various credit cards totaling ~ 20000, most of them are currently intrest free, the one that isn't is 90 days past due.
The attorneys tell me to get the mortgage workout/modification in place and confirm that if I file 7 and re-affirm they will not void the workout, then file - I will likely give all the vehicles back to the creditors except for the daily use minivan.
I am thinking there is a chance I can avoid BK altogether, by borrowing money from my employer and hopefully working out the mortgage.
What are the thoughts and questions of those on the forums?
Here are our personal details as I feel they relate to a possible BK, feel free to give your personal opinion if we should file BK (or not), and the timing. If more info is needed or you have any questions, please feel free to ask.
1) I am a finance manager in the auto industry (15 yrs experience). DW is a homemaker. We have 5 children ranging in age from 2-13.
2) I have earned a large income for many years (but did not save), then that started to decrease rapidly in Sept of last year. In Early November my employer unexpectedly discharged me... I was on unemployment until mid January. I have never been without work in my life before - Prior to the economic downturn, I was usually getting a call every month or two if I want to make a change for more money (I was with my previous employer for 3+ years).
3) Since returning to work, it looks like I will be averaging $6-7000/mo in income, which is about half of what I was making a year ago... In July it could be as much as $9-10,000/mo or more, but it depends on how many vehicles the dealerships sells.
4) Spoke to an attorney who does ch7 and ch7 only (his fee is only $400 also), based on an intial phone interview, he indicated I would likely qualify for a 7, as the basis for qualification is a $98000 annual income cutoff (based on an average of the last 6 months income).
5) 1st mortgage is in pre-forclosue (~14000 in arrears, 5 months), 2nd mortgage is 75 days behind (~900). Currently we have a strong desire to keep the home, if our modification request can be granted. There is little equity there though, so I suppose we could leave it and rent if there is no other choice.
6) 4 auto loans / leases
i) Leased liesure vehicle 38000 owed, 25000 value - $422/mo payment and I have someone willing to take over the lease if I pay $2300 in back payments
ii) Work vehicle daily driver 45mpg 16500 owed, 11000 value - 349/mo payment and the lender wants $1047 or the car back in the next couple of days
iii) Family minivan daily use $4500 owed, 4000 value - will be keeping, and it's current
iv) Previous mivivan, not being driven $4800 owed, 3000 value - $300 to be paid asap if I want to keep it (only if we are not filing BK)
7) Civil Judgement for $6300, $5100 balance and they placed a lien against the home last year - BK attorney says for additional monies he can motion the BK judge to void the lien...
8) Various credit cards totaling ~ 20000, most of them are currently intrest free, the one that isn't is 90 days past due.
The attorneys tell me to get the mortgage workout/modification in place and confirm that if I file 7 and re-affirm they will not void the workout, then file - I will likely give all the vehicles back to the creditors except for the daily use minivan.
I am thinking there is a chance I can avoid BK altogether, by borrowing money from my employer and hopefully working out the mortgage.
What are the thoughts and questions of those on the forums?
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