unsecured debt over 100k

[coolgurka]

I have about a 100k in unsecured. no secured debt and plan to file early august this year.A house with 1st mortgage 150k heloc 150k. now i haven;t had a job for the past few 7 yrs, but the unsecured debt has been accumulated over the last 8 to 10 years or so.Prior to August 2002, i had a job making 100 to 150k I had a bank balance of more than 130k in august 2002.I quite my job in 2002 due to medical stress and sold some company stock options as well

I also refinanced in 2006 and took 150K from the Heloc

I also took money out of my 401k in 2008, about 53k fr the 401k to live on. So all along i have been living off my savings the Heloc and the 401k

I am now really concerned that my Ch 7 bk would be looked at with suspicion.What do you think guys, please advise. I have yet to see an attorney but plan to within the near future.

***I hope to get my first and Heloc discharged under BK Ch 7 (insolvency) and the unsecured debt as well. Last use of CC's would be end of May. Should i file in CALIFORNIA in early august or wait till later? I have no assets (the house is under water)I have a 1994 car which i can keep i think.

[CCCrazy]

I had 165K unsecured debt when I filed. The trustee asked me at the 341, "now how did you get 165K in CC debt?" I explained how and she said OK and that's all she wrote. And now I'm in the 60 day club!!!! And keeping my fingers crossed of course.

[maddog2112]

All of you with over 100k cc debt, homes, and cars, and over median income I`m surprised you were able to file a 7. My lawyer right away put us in a 13 like she knew what she was talking about and I didn`t know any better. As far as assets are concerned, did they try and take any household items? I haven`t bought anything big in years, just the normal tvs, couches , and stuff like that. None of it had liens when we initially filed. It was all cc debt.Did anyone have to surrender anything?

[eddiep]

I had 165K unsecured debt when I filed. The trustee asked me at the 341, "now how did you get 165K in CC debt?" I explained how and she said OK and that's all she wrote. And now I'm in the 60 day club!!!! And keeping my fingers crossed of course.

What did you tell the trustee.

[liz417]

Same here: over the median, over 140k in unsecured debt and most of the attorneys I consulted with wanted to put me in a ch 13 without looking at my expenses. I KNEW (from reading this forum) that I could possibily qualify for a ch 7. I consulted with 6 different attorneys before I found one (ONLY one) that ran the means test and was willing to look at my expenses.

[CCCrazy]

eddiep, I said I'd been in debt since my mid 20's, I'm now in my mid 40's - my lawyer had me list the most expensive things I had puchased in my schedules so she could see where the money went - the trustee actually thanked me for my honesty. Lesson learned? NEVER HIDE ANYTHING!!! The trustee will smell you out if you aren't 100 percent honest!!!

[eddiep]

Oh I know thanks, I was just looking for a way to condense my story but give him enough information.

ohhh, I just can't figure out what to say!!! I have been sitting here typing and deleting for like ten minutes!!

[maddog2112]

Liz47, have you actually filed the 7 then, or is it in process?I had 120k cc debt and you would think I`d have some toys, but no just a bunch of stuff in a house that would be worth nothing in a yard sale or craigs list. Has anyone had to give up stuff like that to the court?

[Fresh]

I have to say that I was amazed reading this thread because so many of you fought for so long to keep things going AND how many of you got caught with the high-interest rate situation in the early to mid 2000's, then add to it a substantial loss in income. I think that's why so many people have racked up so much CC debt: higher interest rates. One of the things I realized for myself was how much harder it was over the past couple of years to keep up with both CC debt and daily living expenses. I got to the point where I knew that the house of cards was going to collapse. When I had no job, that's when everything fell apart.

[kathy4530050]

It's not a problem in a legal sense, but when unsecured debt gets over $100K, those cases tend to invite more scrutiny by the U.S Trustee.

Is that still true when over half of the unsecured debt is business debt?

[anuta]

I have to say that I was amazed reading this thread because so many of you fought for so long to keep things going AND how many of you got caught with the high-interest rate situation in the early to mid 2000's, then add to it a substantial loss in income. I think that's why so many people have racked up so much CC debt: higher interest rates. One of the things I realized for myself was how much harder it was over the past couple of years to keep up with both CC debt and daily living expenses. I got to the point where I knew that the house of cards was going to collapse. When I had no job, that's when everything fell apart.

I do think high interest rates contributed--but it was more a lack of understanding (on my part) about what 30% interest rate really means. Now I am amazed that I thought we could ever pay this off. Think of how quickly the money owed doubles at this interest rate. I really thought somehow we could pay this off. Beacuse CC companies are so aggressive with collections, We paid them over taxes, electric, gas--everything--just to scrape together minimum payments. We tried so hard to settle throughout the past 3 years and only in the last few months have they been interested in that. It's too late for that. It really was both ignorance of how finance works and some magical thinking that contributed to where we are today.

[albacore44]

Liz47, have you actually filed the 7 then, or is it in process?I had 120k cc debt and you would think I`d have some toys, but no just a bunch of stuff in a house that would be worth nothing in a yard sale or craigs list. Has anyone had to give up stuff like that to the court?

Liz has not filed yet. I had her consult last week with the 1st Attorney I spoke with to get her opinion and It's thumbs up, so we will both be using him. This guy has 30 years experience and is a BK only Att, so he really knows his business. She is farther along than I am, I'm waiting to let my debt age a bit. We also both have over $100k unsecured. Also i just spoke to a realtor who is marketing a bank owned forclosure around the corner, home just like mine for $350K. When that house sells, it will give me a better chance at stripping my $240K HELOC since my 1st is $417K.such a shame.........my house was appraised at $1M in 2007