BK questions and advice...

[JohnCampbell08]

I haven't given up all hope for my loan mod, but I think I should look ahead and prepare for some possibilities..I have researched a little through the forum, but have a few more questions.

The house, and many of our debt is carried by me and my wife combined. If I file BK, I am presuming it must be by both me and the wife? I am not sure how it would work with only me.

If one were considering BK, would it make sense to wait to the very last minute, expend all avenues of credit, save as much money as possible, and then drop the hammer...or does it benefit you if you file before you are actually delinquent on your accounts?

If you bought something with line of credit, TV or furniture for instance, then filed BK, they could come after it? Or is that depending on the type of BK?

Does a car loan show as a repo if it is combined in the BK? Or just as paid or settled for less than the balance?

And I know a lot of it depends on the BK that one would file, but how does the debt get distibuted? I am presuming the lawyer calls the debtor, negotiates a smaller amount or none at all, and then that smaller amount of debt gets repaid over a term?

I think I have given up the idea of the possibility of keeping the house, and maybe a fresh start would benefit me...that includes the cars and the small amount of debt that I have incurred over the last few months after my reserve went dry.

Thank you for your advice.

[Moe Bedard]

The questions that you pose here would be best answered by sitting down with a BK attorney for a consult................which they will do for free..........and then go from there..........as the laws tend to differ in some states.

[DMKBMN]

Hi John,
We are also trying to figure out the pros and cons of BK. We have spoken with 3 BK attorneys (many offer a free consult either via phone or in office) and each one has a different perspective. We make too much $ (over median) to neatly file 7, but with our debt load (including mortgages), that is our first choice. Clean start. Not sure we will qualify. All the attorneys we spoke with said do NOT run up credit card debt 6 mo's prior to filing, as the Trustee (analogy of a Trustee's role is that of a prosecuting attorney) could look at that as abuse and may recommend discharging the 7 or 13 BK altogether. You can keep your car loan outside the BK if you want to continue to pay that debt; not sure if it shows up as a repo if you let it go. (You can also keep your mortgage out of BK, but it sounds like you'd rather not.) From what I have learned, there are state and maybe even county deductions that you are allowed to take related to home utilities, auto expenses, school-related expenses for your kids, food allowances, etc. and if you file Chapter 13, the court will decide how much "expendable" income you have each month that could be applied to a repayment plan toward your debt over a 3 to 5 year span-- generally a lesser amount than what you actually owe. Sounds like nobody lives an extravagant life while in 13! (Not that we are now.. trying to keep up with mortgage payments and everything else!) Hope this helps a little bit, and I wish you luck in finding the best solution for you and your family. It all becomes so mind-boggling at times, doesn't it? For me, it seems more manageable to break it all into compartmentalized options. We are good people who have found ourselves in tenuous situations, and trying to make the best decisions we can. Remember that... and walk tall :^)

[JohnCampbell08]

Thank you for your advice. Did your attorneys mention if it benefits you if you are not yet late on your payments (like I am) compared to if you are "knee deep" and everything is going insane? I understand about the charging before you file the BK, but what if that was not intentional?

What about the recourse, if something is bought, could they come try to repossess it from you like furnture or tv etc?

I know I need to talk with someone, that will be my goal after the holidays, so I will update you all so that if anyone else is in my situation or state, that it might help. Thanks for all the help