should i file?

[goryr88]

been lurking and just joined today...lots of great advice. Here goes. I am currently about 40k on cc debt, 12k student loan. i have 3 cars all tied in with my home loan so i make 1 payment. 500/month. i also have a jetski i bouthg new in 07. making $100 monthly payment so probly not much equity. probly not much equity in the cars either since they are combined. i also receive 257 monthly child support. I am a single father in iowa with custody of my son so we have a 2 person household. I usually make around 33k per year but this year was higher since i had a 1099 of 8900, so i made about 42k. I am strapped, but am able to make my payments. SHould i file cahpter 7? I really dont have any assets. they are all owed against. just looking for advice. I know someone who filed pro se and it worked without a hitch. This is wat i would like to do. she used standard legal and it worked fine. I dont see any way out. I also bought some stuff that were some necessities but charged about 730 last weekend. Should i wait? Any options would be great....thanks in advance for your help

[Help!]

Have you looked up the median income in Iowa to see if you're above or below? You'll need to include the monthly child support as income. You'll definitely need to wait a while to file. How much equity do you think you have in your home? The cars?

[goryr88]

according to legalconsumer.com, the median income for a 2 person family is $52608, and i am way below that. so even including the cs, i only made 45000. also for wat its worth i usually only make about 32-34k, but i did some stuff on the side this year and got a 1099 for 8900. i am just refinancing my my home, and the balance is 81000. that is including 3 cars. 95 taurus sho w/150000 miles, 98 cadillac sts w/125000, and 2003 cadillac cts with 86000 miles. i would reaffirm these, they probly dont have much equity anyway. i do have an 07 vx1100 jetski. i would probly reaffirm that too. paying 100/month since july of 07. probly not much equity. i think i am pretty much a no asset case, but im a little scared. the money i charged this last weekend was mostly necessities so i dont know if they think thats fraud or not. im just tired of being broke, robbing peter to pay paul,etc. i want to file per se if i do this. im not behind on anything, but sick of the ratrace. i am fully responsible for what i did. i just made mistakes. when should i stop paying cc's? what about taxes? should i empty my savings? i think i am exempt $1000. i just dont want to raise red flags. want this to go smoothly. thanks for the help guys. i truly do appreciate it during this trying time.

[keepmine]

If bk is what you intend to do, stop paying all debt you wish to discharge and, use the money you were using for monthly payments on the cc's for living expenses.
You need to get familar with Iowa's exemptions before you can do much planning.
For sure, get your tax refund before you file.

[Trixie007]

i am just refinancing my my home, and the balance is 81000. that is including 3 cars. 95 taurus sho w/150000 miles, 98 cadillac sts w/125000, and 2003 cadillac cts with 86000 miles. i would reaffirm these, they probly dont have much equity anyway.

I'm really confused by what you mean that your home mortgage includes your 3 cars. Does that mean you are refinancing your mortgage and paying off the cars with the cash out? Is the lienholder taking title to all 3 vehicles and putting a lien on the house. I don't get it.

[goryr88]

its all combines in 1 loan. basically i bought a car before i sold one and have 1 for sale on autotrader. i couldnt afford another payment so i put it with the house

[Trixie007]

Ok, but does the lender have a Note on the house which also lists a security interest in the cars? If not, if you just used a cash out refi and paid off the vehicles, then they are not secured by a loan and are therefore just considered to be an asset.

[goryr88]

yes they have security interest on all of it.

[Help!]

I'm curious about this, too. So on the titles of each of the cars and the watercraft there is a lienholder listed, correct?

[goryr88]

yes.. you are correct..what do u think about standard legal? how long do u think i should wait? the house cars and jetski i will reassume...not to worried about them.

[hnhlvr]

You are "strapped" yet you're keeping a jet ski???

[yuckhatethis]

You are "strapped" yet you're keeping a jet ski???

Yep, I'm with hnh--I'm afraid you're really going to raise some flags to any trustee...wanting your cake and eating and all...

[goryr88]

excuse me....i meant the cars

[goryr88]

the only reason i mentioned the cars was because its all tied in to one loan, and the cars don t have much if any equity...and its my bank ive been with for 11 years and i dont wanna shaft them...its the cc's that are killing me...i dove in to deep to fast....not thinking ahead but for the now....big mistake...im regretful for all of it....but i dont know what to do

[hereforinfo]

So the cars will be paid off with cash from your refi? If that's the case, then it sounds like the cars won't have a lien on them...and for all intents and purposes will be paid off, free and clear (even though you're actually transferring the balances to your mortgages and will still owe for them). If that's the case, if you can't exempt them then you may have to give them up - and then you'd still be paying for them on your mortgage. Doesn't sound like a good idea to me. Regardless, I doubt the trustee is going to allow you to keep 3 cars and a jet ski. If you can't even afford necessities, you cannot afford a jet ski.