I said Chapter 13.. husband said Foreclosure

[AboutToBK13]

Very few filers will have the problem I do. There's a couple other folks around here that committed "fraud" by giving their kids a down payment for a home.

In this situation the trustee actually goes after the recipients. Rather than have legal action against my daughter and my father's hearing aids repoed I'm waiting the 24 months. I could also settle with the trustee myself.

I'm judgment proof so waiting the 24 months is no big deal. It actually gives me time to convert some non-exempt assets into exempt assets.

I'm also working on collecting enough fines from the collection agencies to pay for my bankruptcy.

Can't wait to see what $190k in CC debt adds up to after a couple years of 33% interest plus fees. My chapter 7 which should be a slam dunk by then may come under a little scrutiny.

$190K CC debt might come under scrutiny I agree. Especially with a very large income. Did you say you had 200K+? If your lawyer can get you a CH 7 with that income level I want to hire him now.

We are at $116K CC debt and $140K - 150K income, depending on bonuses from year to year. If we could find a way to file CH 7, we would do it.

Note: We were not making that much when we got into debt. DW just finished her doctoral degree and recently started working. We were hoping we could pull things out once she got finished and started working. We were wrong, things were to far gone by then.

[ssdsco]

$190K CC debt might come under scrutiny I agree. Especially with a very large income. Did you say you had 200K+? If your lawyer can get you a CH 7 with that income level I want to hire him now.

We are at $116K CC debt and $140K - 150K income, depending on bonuses from year to year. If we could find a way to file CH 7, we would do it.

Note: We were not making that much when we got into debt. DW just finished her doctoral degree and recently started working. We were hoping we could pull things out once she got finished and started working. We were wrong, things were to far gone by then.

[treehugger1]

I agree with the last comment. While there may not be many of us on this board who make $80+K and over, it is good to hear my direction of continuing to pay into tax-deferred retirement accounts was also first in another's mind. I am in my 50's with a substantial student loan debt. I have not filed for BK, but it has been on the radar for the past 1 - 1.5 years. While i don't know your history, it may be similar to my own. I can "retire" in a couple of years. At that time, my income would certainly be BK 7material. Currently, my income of $85+K is substantial for a single person. I cannot file a chapter seven. I owe about $65K in unsecured debt (not including student loans) and would currently be in close to a 100% BK 13 payback plan. It does not make sense to file for a 13 at this time, when a few years from now I can "retire" and still comfortably pay on my student loans (which are not discharged in BK.)

I have now heard of several folks who have waited to declare a BK 7 (having $200K - $600K in exempt retirement and TDI accounts) until they have retired and are living on their pensions. Pensions and retirement funds are exempt in almost every state, maybe all states for all I know.

I suspect that there are many baby boomers who will eventually opt for this scenario. In addition, I believe there are many folks out there, close to retirement, with health issues, that will eventually qualify for a BK 7 and also qualify to have their student loans forgiven.

The baby boomers are only beginning to show their true un-payable debt to the world. LOL

[mat04]

Thanks very much to all of you. WOW!! everyone had said something to think about....
My situation is almost similar to ssdsco... supporting parents (Dad died 4yrs ago), supported my son when he came from Iraq (Military), until he became a Firefighter/Rescue...It is now my daughter's turn to be helped (1.5 more years before Dental school)... we pay for tuition, fees, books, clothes, car, gas, etc... she is taking pre med/chemistry... she plan to take a student loan when she gets to Dental School...

This is what I am thinking: Ch 13 to prevent from deficiency judgement ( appx $100k-$175K)....pay $5,000.00 a month x 10 months (100%payback plan), be tight for 1 year .. then retire a year later.

This is my husband's thinking: Foreclose the house, wait and see how much the deficiency judgement (maybe the bank would not ask for defiency judgement)... retire in 2 years... pay the deficiency judgement from his retirement acct.

We are so confused and dont know what to do. We are gathering papers for ch 13, but everyday our plan changes.

Thanks so much again for everyone who posted, especially to ssdsco and treehugger1, both your ideas are something for me to think about.

Thanks again.

[ssdsco]

Thanks very much to all of you. WOW!! everyone had said something to think about....
My situation is almost similar to ssdsco... supporting parents (Dad died 4yrs ago), supported my son when he came from Iraq (Military), until he became a Firefighter/Rescue...It is now my daughter's turn to be helped (1.5 more years before Dental school)... we pay for tuition, fees, books, clothes, car, gas, etc... she is taking pre med/chemistry... she plan to take a student loan when she gets to Dental School...

This is what I am thinking: Ch 13 to prevent from deficiency judgement ( appx $100k-$175K)....pay $5,000.00 a month x 10 months (100%payback plan), be tight for 1 year .. then retire a year later.

This is my husband's thinking: Foreclose the house, wait and see how much the deficiency judgement (maybe the bank would not ask for defiency judgement)... retire in 2 years... pay the deficiency judgement from his retirement acct.

We are so confused and dont know what to do. We are gathering papers for ch 13, but everyday our plan changes.

Thanks so much again for everyone who posted, especially to ssdsco and treehugger1, both your ideas are something for me to think about.

Thanks again.

[ssdsco]

I have now heard of several folks who have waited to declare a BK 7 (having $200K - $600K in exempt retirement and TDI accounts) until they have retired and are living on their pensions. Pensions and retirement funds are exempt in almost every state, maybe all states for all I know.

I suspect that there are many baby boomers who will eventually opt for this scenario. In addition, I believe there are many folks out there, close to retirement, with health issues, that will eventually qualify for a BK 7 and also qualify to have their student loans forgiven.

The baby boomers are only beginning to show their true un-payable debt to the world. LOL

I see this being discussed in retirement financial planning forums. Looks like there's a bunch of boomers with the only thing between them and early retirement is a chapter 7 and determining how to handle heath care costs. Some are also planning to relo to states with generous BK exemptions and filing chapter 7 after they meet residency requirements.

[mat04]

Well....... we decided to let the second home go on Foreclosure. We stopped mortgage payment. If or when we get the deficiency judgement, we will deal by then... perhaps retire and file chapter 7 or 13.... We saw a lawyer and said he has not seen deficiency judgement enforced for many years... and should not worry about it... I hope he is right, but if not, we will deal with it at that time.

Thanks to all.