Ch-7 Coming out of the closet-Newbie

[kennman]

I have been reading this forum since November 2008. Wow, I am so glad I found this forum.

Our story:
We live in Washington state. My wife is 62 and just started collecting SSI.

I have been working as an independent contractor. Last worked October 2008

I receive a pension. I was "offered" early retirement. I am 61 and will start collecting SSI in June 2009.

We went from an average monthly income of $8500.00 to $3000.00. Our monthly bills and expenses are about $7000.00 per month. Obviously every month that goes by, we go in the hole another $4000.00.

We certainly qualify for C-7 under the mens test. We will probably file in May 2009.

We have worked all of these years and have acquired a lot of "stuff". 4 vehicles, boat, camper, 4 wheelers. You know what I mean "the toys".

We have a home valued around $400,000.00 with an outstanding loan (lst and 2nd of $275,000.00).

Having spent a lot of time on this forum site, I am assuming we will be considered an asset case.

We have retained an attorney and are in the process of getting him paid.

At this point, the hardest thing for DW and I is accepting the fact that we will lose everything we have worked for all these years. Especially for DW.

I certainly could have done a better job of the financial planning aspect but for some odd reason, I never realized I was getting older.

I don't think I have any specific questions of the forum. Just putting "it out there" really helps.

Thanks to the BK Forum, moderators and all you "posters" for your questions, answers, ideas and everything else.

You all have been a great source of information.

[keepmine]

Why file bk? Sell all the toys and the house yourself.
What's the totality of your situation? How much debt are you trying to discharge?

[kennman]

Keepmine
Debt Amount Value
House 272,000.00 400,000
Vehicles 18,500.00 18,500
Repo'd RV 73,000.00 Balance on repo
Time share 47,000.00 47,000
CC's 67,500.00 Last used 6 months ago

ASSETS
Personal property not included above 20,000.00 (market value-garage sale pricing)

1992 Lincoln 2500.00
1994 Dodge PU 4000.00
Camper 2500.00
Boat 3000.00
4 wheelers 4000.00

We need to discharge approx $480,000 in total debt.

Yeah, I agree, sell the "stuff" ourselves. We are just trying to figure out the "best" approach to all of this.

Thanks for your quick response.

[OhioFiler]

Keepmine
Debt Amount Value
House 272,000.00 400,000
Vehicles 18,500.00 18,500
Repo'd RV 73,000.00 Balance on repo
Time share 47,000.00 47,000
CC's 67,500.00 Last used 6 months ago

ASSETS
Personal property not included above 20,000.00 (market value-garage sale pricing)

1992 Lincoln 2500.00
1994 Dodge PU 4000.00
Camper 2500.00
Boat 3000.00
4 wheelers 4000.00

We need to discharge approx $480,000 in total debt.

Yeah, I agree, sell the "stuff" ourselves. We are just trying to figure out the "best" approach to all of this.

Thanks for your quick response.

I'm not sure where you come up with those values for your vehicles. I would think you're over-estimating the car and truck. Let the camper, boat and 4-wheelers go. You can buy replacements after the BK.

I doubt you have that much equity in the house as well. Check around your neighborhood. Find out what houses are REALLY selling for.

Worst case scenario is you file Chapter 13 and five years from now you're debt-free.