Need advice

[strugglingda]

First of all, thank you for this great forum. All of this is very informative.

I owe cc debt of $160,000. My mortgage and car payments total $2000 a month. I make 102,000 a year with monthly take-home pay of $6000. Still up to date with all the payments, including cc but paying monthly minimum only (about 2500), and finding it increasingly difficult to live with leftover income. Single but supporting 100% an elderly parent with no income or assets of his own. I have no equity in my house, with two mortgages totalling 200,000. Still owe 9000 on the car. Have a stock portfolio worth about $50,000. It had been worth a lot more till the crash of the market and all the forced sales due to margin calls. Would really want to hold onto the portfolio, which is the only asset I have left.

Would I qualify for ch 13? What kind of monthly payments can I expect to make if I qualify? I can lower my montly income by about $500 by contributing to a 403 account. Should I do that? Can I hold onto the portfolio if I file? Should I stop making payments on my cc immediately and file 3 to 6 months from now if I qualify?

Thank you in advance for any advice offered. Greatly appreciated.

[AngelinaCatHub]

OK, the rules here mainly state, if you can't help, don't say see your lawyer. I am saying see your lawyer. You really have a great problem particularly being single. The ace in the hole may be your obligation to your kin. I believe this is far above even this forum. I hope others will or can help you. You make a lot of money. You sure do have a lot of expense. 'Hub

[Flamingo]

You state your elderly parent has no income or assets; what about social security income? You are eligible to claim your parent as a dependent but the Social Security you parent receives will probably count toward your household income for filing. I think what you have to do, or have an attorney do, is figure out if you are actually bankrupt and can file. From what you have posted above with your assets compared to your debts it is quite possible right now you are not bankrupt. If you are with your income and other assets and the addition of your other household income you would be facing a Chapter 13 - just my opinion with what is posted.

[strugglingda]

You state your elderly parent has no income or assets; what about social security income? You are eligible to claim your parent as a dependent but the Social Security you parent receives will probably count toward your household income for filing. I think what you have to do, or have an attorney do, is figure out if you are actually bankrupt and can file. From what you have posted above with your assets compared to your debts it is quite possible right now you are not bankrupt. If you are with your income and other assets and the addition of your other household income you would be facing a Chapter 13 - just my opinion with what is posted.

Thank you for the replies. My dad has no social security and no income period. My portfolio value can be decreased if I were to do some funding of my IRAs for 08 and 09--and it could possibly lose even more with the way the market is. A few of my cc rates are very low, but a couple of them have kicked into higher rates just the last couple of months because of the expiration of promotional rates. More of them will kick into higher rates later on this year. As I have problem making ends meet as it is from month to month, I fear what will happen when more higher rates kick in. I will talk to a lawyer about this. Thank you everyone.

[fltoo]

With your cc debt, I would venture a guess that a chapter 13 BK would do you well. You are probably over the median income to qualify for a chapter 7.
Read on here, you will discover the difference and how to go about filing.

Your situation is no harder than anyone else here and people will chime in to help you out. The above posts are not totally indicative of the kind of advice here. People are extremely helpful and informed.

You might be able to start contributing to your 403b. Someone going through a chap 13 with a 401K can offer you advice.

[strugglingda]

Thank you, Fltoo.

Dave

[fltoo]

What state? You need to find out your exemptions firstly.

[EricaCallaha]

I think you may be a good candidate for a 13. Care for your elderly parent will be included in your expenses. It actually works in your favor that he has no income or assets. Start hunting around for a bankruptcy lawyer. Loads of them give free first consultations. Make the most of yours and bring all of your numbers with you. Get lots of consults. Depending on what they say, you could have some really nice options out there.

Good Luck. It is a hard step to take.

[strugglingda]

Thank you for the advice, Erica. Really appreciate it. Looking for a lawyer as we speak. Wonder if anyone can recommend a good one for SE Michigan. Please PM me. Thanks a lot.

[EricaCallaha]

Hey, the hubby and I have been where you are at and it really isn't easy. We just finally bit the bullet and took the first step. Now we are days away from being confirmed. We are excited at the prospect to having some control in our checkbook. We are using this as our one shot...so we better make it work!

Best of Luck to you....and I really mean that.

Keep us posted.

[Flamingo]

Thank you for the advice, Erica. Really appreciate it. Looking for a lawyer as we speak. Wonder if anyone can recommend a good one for SE Michigan. Please PM me. Thanks a lot.

The best thing to do when at a loss to find a good BK attorney in one's state and which I always advise on here to do when one does not know where to go or where to start is to call your State Bar Association (in the phone book under your "state" section) and ask for some referrals for reputable BK attorneys in your city/county area. Do not go for the TV ads or the big ads in the phone book. Most BK attorneys do free initial consultations. You will need to put together a complete listing of all your debts, monthly payments, sources of income, recent paystubs, asset listing and a copy of your most recent state and federal tax return. Also bring any information as to your elderly dependent father.

I wanted to ask you previously as to your dad - do you claim him as a dependent? If not, he is eligible for Medicaid if he has no income or assets. That may come up as an issue/question when you file because there is aid out there for him which would ease or take away the financial burden on you. There are also free medication programs through various drug manufacturers for seniors who cannot afford medications and all sorts of stuff but one has to take the time to research it with various senior programs or state programs - I recently went through all of this with my elderly mother prior to her having to go into a nursing home since she could no longer be cared for at home. So I understand the financial burden associated with all this. Talking to an attorney will help you get things into perspective so you know how to plan and what to do. There is lots of help and support on this forum and there are always a million questions as to a Chapter 13 cause no two Plans are alike.

Best of luck to you!

[strugglingda]

Thank you Erica and Flamingo. This is a daunting step to take. It is a disturbing thought and prospect that for 5 years your finances will come under the scrutiny of the government. But it can be worse. I will be actively looking for potential attorneys over the next few days. Really appreciate all the advice.

[blindsided]

Well, it isn't day-to-day supervision. Some trustees are relatively hands-off compared to others, but none of them have the staff have someone tail you to the store! Once you have your plan, barring major changes to your income or expenses, it's just a matter of plodding through.