Give me some pointers!!

[BC7114]

I am planning on filing CH. 13 in about 4 months. Can all you give me some quick pointers on what I should be doing during the next few months? I have about $50K in unsecured debt, 1st car $18K debt, 2nd car $15K debt, and house 80K debt. Current on pretty much all payments, but just took a 10% pay cut and commissions being held until jan 2010. All comments welcome. I am like a sponge!

[lrprn]

Pre-planning your 13 is the way to go. However, unless you tell us which state you plan to file in, why you think you have to file a 13 rather than a 7, if you are married, if you are filing together or separately, if you have children, etc....it's hard to offer any reasonable suggestions about what to be thinking about between now and filing.

One thing for sure - DO NOT take any money out of your retirement accounts! This money is protected when you file bk - the trustee can't touch it.

Another thing to think about right now - do you plan to keep all of your major assets that are already considerably upside down? This is the time to think about whether it makes long-term financial sense to do so. The chances of these assets recovering their value is very, very small.

[BC7114]

Thanks, lrprn. I am in Alabama, married, filing joint, and have 2 kids (9 and 4 yrs). The reason for wanting to file CH. 13 is that I can't take the chance of losing my house. My house sits on a piece of property that my parents deeded to me as a favor and it I were to lose the house and land it would crush my relationship with my parents. Eventhough there is only a small amount of equity in the house (say $15,000) I can't take the chance of it being taken away. As far as the vehicles go we have to have 2 vehicles for work (I go one way and she goes the other and we work on differents schedules). Both vehicles are 2006 models and are in excellent shape so they should last us a while. I current bring home $720 a week. There is a possibility (depending on sales this year) that I will receive some commissions at the end of January 2010 (could be as little as $4K commissions and as much as $20K). The way sales are going it will be the $4K. My wife doesn't have a full time job. She is currently doing some residential cleaning ($100 a week) while she is trying to find a full time job. Considering our son is 4 if she found a full time job the money she would be making would go right back into daycare. So don't know if it makes sense for her to have full time job right now. Most of the unsecured debt that we have is in my name (Credit Cards) only about $5K in in hers. The vehicle that we owe $18K on is in her name and I am co-signer. The vehicle that we owe $15K is in my name. And the house is in both of our names. I hope this answers all your questions above so you can help me out will some pointers. Thank you

[lrprn]

Thanks for the answers - they help a lot. Two more questions....

You said you "bring home $750/week". Is that gross or net? Is the amount your wife is earning currently gross or net?

Are your mortgage payments up to date?

[BC7114]

$720 is net and my wife's is net. House payments are up to date. As a matter of fact everything is up to date for the most part right now. But will be falling behind soon if I stay on this same track.

[lrprn]

$720 is net and my wife's is net.

When you file bk, gross income is used. What is your and wife's gross income from all sources looking back the last six calendar months?

[BC7114]

At the time I am planning on filing my and my wifes gross income will be an average of $4800 per month. If I filed right now it would be consideraby more due to a commission check that I recieved in January for $4400 that I will not be receiving this year. Hence the reason for waiting 4 months before filing.

[pcn]

BC7114, What county are you in? We're in AL also, and are seeing just how debtor unfriendly a state it really is compared to others. Our exemptions are horrible.

[BC7114]

pcn, I am in Lee county and yes our exemptions are terrible! Especially house exemption of $5K. It's ridiculous. What county are you in?

[pcn]

Ack!! I am afraid I can't talk to you now that I know where you are from.... "That other school whose name that can not be spoken"...
I am in Lamar County, probably almost a direct opposite of your county, economically speaking, from quickly browsing the Lee County web site. We have no industry to speak of, and what little we do have is circling the drain. We are looking at a lien strip hopefully, after just getting our house appraised. But still not 100% committed, hoping for some miracle I guess.

[sassiebaz]

If you are losing income and plan to file in 4 months, I'd say stop paying those credit cards and use that money for your family. I'm not a pro, but I'd say start there. Have you consulted an attorney, that's another thing I'd highly recommend! Good luck to you....

[BC7114]

pcn, I understand... War Eagle! Yeah, Lee County has some industries coming in especially with the new KIA plant opening in Lagrange, GA. But we also have a lot of them shutting down. Uniroyal Tire plant just annouced in is shutting the doors on OCT. 31. That will put nearly 1000 people looking for jobs. Good luck with your lein strip and bk.


Sassiebaz, I've had some meetings with a few attorneys and I have picked the one out that will take us through the bk. Thanks for the advice.