Anyone with Chapter 11 knowlege or experience?

[screwedupbyRE]

I'm still undecided, and have started getting calls from collection agencies.

recap of my situation:
#1. more than 100k cc debt
#2. exceeds state's limitation of secured/unsecured debt for ch 13. So can't do ch 13.
#3. have 2 home, one letting go, other planning to keep and the value of this house down approx 25% - means I can do lien strip or cramp down on second loan - but can't qualify because of #2.
#4. I'm already qualified for ch 7 - but I want to retain the house AFTER cramp down, otherwise not.
#5: makes 2.5 time more than median income.

It's like a deadlock situation, so my alternative is: ch 11.

So I contracted an attorny for one hour and paid this sucker 250 bucks. He said if I want to retain my current home plus cramp down the second loan, my only and only option is ch 11.

If this posting confused you, that's an assurance that my brain is really chocked, thinking about it all nights, days, hours, minutes... sick of it.... sometime I think a gun shot in my head would ease the pain and would leave $3 Million for the family (life ins. policy)... but can't leave my 4 yr son behind.

pls let me know if anyone has ch 11 experience before I post my questions????

Thx for reading.

[whoops08]

We're in the same boat...

Hi.
First Please don't think about suicide...this money situation although can seem very dire and is very stressful, it's just money and you can always make it back. Your family needs you more than $3 million dollars of insurance money...

We are in the same boat as you with 2 homes, high incomes etc. Two attorneys we talked to first told us we didn't qualify for Ch. 7 because of our high incomes but told us that we could do a 13. The third attorney we spoke to said that we could not do a 13 because we exceed the secured debt amount because of the two homes. He however did the means test for Ch. 7 with us and because of the two homes plus all other necessary expenses and having three dependants said that we DID qualify for 7. He also stated that the BK law for 7 states that you can include the mortgage for the homes in the means test even if you intend to surrender them. I don't really know if this is true or not but that is what the attorney stated. He also then said that we might also be a CH. 11 case but it would cost alot of money!

I guess what I am trying to say is that you need to contact a few more attorneys, We are meeting with our 4th attorney on Tuesday.

We are very stressed, confused and worried but we feel lucky that we are all healthy and at the end of all this we think it will all work out somehow.

Good Luck!

[screwedupbyRE]

Thx Woops08, I'm meeting with three attorneys this and next week... I'll keep u posted since our situation is similar.

[HHM]

How miuch secured debt do you have, for a chapter 13, the unsecured limit is somewhere north of $300K, and the secured limit is over $900K.

If you let the 2nd home go in foreclosure, you can probably get around the secured debt limit and still file a 13.

[screwedupbyRE]

HHM, that was the first thing we though. We have secured debt of $1,492,000 and unsecured $102,000. (current situation)

So we though we'll let the second house go into forecloser. But there's a catch. If I foreclose other house, the second loan on this house will be consider as debt on my credit report. With this option, the secured debt will come down to $623,000 (first loan of my primary resi), but unsecured loan will go up.
i.e. 100K Credit Cards + 130K off the forecloser + 157K off the primary residence (since I'm doing a cram down on second loan of my primary resi) = 387K

So, I'm stuck there.

BUT, if bank do not report 130K as 'hanging' debt on my credit, I'm good for ch 13.

Limit for 13 is $336,900 for unsecured debts and $1,010,650 for secured debts.

Do you think if I let go second home into forecloser, there wont be any 'hanging' debt???

Thx.