Maybe a little introduction will help set the stage. I'm in my early 40's and have a wife and three kids. Kids are all in high school now and my wife works a couple of part time jobs as well as volunteering at the school.
I worked for a specialty consulting firm until March of 08, when I was given a severance package and shown the door as a result of a takeover by a larger firm. My division was no longer needed since they had their own staff. At the time I didn't think I would have a problem getting a new job and we had plenty of savings, plus almost 6 months of salary as severance. Job market for $150K jobs was a little tight but I didn't think I'd have a problem finding a position. Figured at the time that I'd have to take a bit of a pay cut but never really worried about it.
Fast forward 18 months and money is gone. Implosion in real estate means rental property is underwater by $200K plus and vacant. Primary residence is just about break even but the next drop in real estate will put it underwater. Stock market swoons, taking out significant chunk of our investments. Economy tanking and now the only job prospect is for half of my former salary. Plus the job is in another state altogether.
After much soul searching we decided on our course of action: I'd move with the two younger kids that are just starting high school, Mom will stay behind with oldest as she finishes her final year of high school. Tough call but I can't see taking my daughter away from friends she's gone to school with for most of the last 10-12 years. We figured the two younger ones would be better getting settled in the new school since odds are they will complete high school there. By the time we get relocated and start the new job, financial picture is getting real grim. Rental house lost to foreclosure and expecting 1099s for close to $200K. That would translate to a huge tax bill unless I can convince the IRS that I'm insolvent.
At this point we'd pretty much decided that we needed to file Chapter 7, given the level of debt and the drastic drop in income. Started working on it in August and hired our attorney in September. About two weeks ago we received a summons for a lawsuit from Chase. Yesterday we filed and got our case number and the date for the 341 meeting.
Today is F+1. Nice to get across the first finish line, but still a ways to go. This morning I need to give the kids a few bucks for school but I also need to get food for the dog, and I've only got five bucks in my wallet and the next cash infusion is not coming until next week. Fortunately we have a jar we toss our spare change in on a regular basis.
So here I am, living in a new state far from my wife and oldest daughter, digging through the change jar to give my kids some change and find enough quarters to pay for some dog food. Sad chuckle when I think I once had enough disposable income to pay cash for a $1,500 dog and now I'm checking the couch cushions for money to feed it. At least he's not judgmental.
Fortunately I've pretty much passed through the "woulda, coulda, shouda" stage and finished all the pity parties. No more thinking I'm too smart to have let this happen. We're adjusting to the new reality and looking forward to our best and brightest days still ahead.
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BobMango started a blog post Post Chapter 7 Filing - Day OnePost Chapter 7 Filing - Day One
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I am four days from my 60 day window after the 341 hearing, and feel your pain! The best thing we did was over-prepare for the 341 by anticipating any questions the Trust attny would have during and after that date. The 341 was no big deal as far as requiring paperwork and statements, but the anxiety was there watching others go through the process before us. Turns out there was a question during the meeting about our investments/retirement/kids accounts. I prepared the necessary information and emailed it to the Trust attny ahead of our next meeting, and they ended up cancelling that meeting recommedning bk with "no assets" available. We made sure all statements, investments, etc were accounted for and that we could deliver within two days of the Trust Attorney's request, if he/she had another.
Now reality hits... no cash and building for the future. Even though we did not have much personal debt (all business related debt), we now have no credit to fall back on. I created a detailed cash flow spreadsheet to budget money for expenses and savings (maybe). The toughest part for me was realizing there was nothing to fall back on and cash is king. You would be surprised how fast it goes. It's scary, but I found a job and now 60 days after our 341, we actually were able to save some money. we are tow days away from our release. I expect we will received notification within the next 60-90 days based on how backed up the courst are.
Keep puching forward!