Would like your advice - PLEASE

[johny]

hi all
here are my details:

we are from MICHIGAN..

started daytrading stocks since 2003...used up all my savings for this biz and living expenses( around 300K ) also used up my ira

Would appreciate if i can get some advice/help..

I am thinking of filing chapter 7 as a individual cause my unsecured debt cc is around 80k...missed 1 payment by 2 days and they have hiked up their rates this month...expecting other cards to follow...so far have a pretty good credit record and score of 760.but my my new increased rates i will be overstrecthing my means..

my dad supported me last yr with a soft loan of 30k last year and 50k this year. Says he is done supporting me.

all cc were issued to me with my wife as a secondary card holder. cc were mainly used for living expenses from the past 3 years and were maxed out with balance transfers to keep my payments low...had a cash advance/direct deposit twice on 1 card for abt 40k but the balance on this card is now back to 16k. Bought no luxury items or had any vacations on the cc..
My last balance transfer was May 01 2009.

can i file as a individual w/o my wifes knowledge..( dont want to wreck my family life )

we file taxes jointly and have a joint home mortgage and home equity ..current on these payments.

have a joint bank a/c with around 4 k for this months expenses...

also have a joint trading a/c with abt 24k which i use for the purpose of self employment/income generation and withdraw from for my living expenses thogh i have yet to see profits..I File taxes as a daytrader

what effect will it have on these joint a/c if i file as an induvidual? will they be frozen or money withdrwan to pay some debt ?

also had some jewelry that was sold off in 2004/5 for living expenses...this was listed in our home insurance since 2002 and is still listed..i dont have proof of selling these jewelry...will the court ask for the jewelry since it is still listed in the insurance policy...

have literary no other assets except for a 1996 suv worth around 3k

also my wife is a home maker.

given my zero income situvation i am hoping i get thru chapter 7 eligibility or pass the means test if it is taken.

Can i work( mean trade stocks ) after filing for chapter 7 from the trading a/c i mentioned ?

thank in advance for all your replies

[JRScott]

The very first thing you need to do is sit down with your significant other and discuss the finances. Nothing leads more to marital problems than hiding/trying to fix financial problems without full consent of both partners.

You can't fix the problem without both of you being onboard, because if it is like most bankruptcies you are going to have to make lifestyle changes in order to live a less affluent lifestyle than either of you are used to.

The next thing to do is determine if your in a community property state, there's a link here somewhere about that.

Your situation may be a bit more complicated than normal, I'm assuming your daytrading is not incorporated as a business. Thus really all assets of it are personal assets. What you will need to do is talk to 3-4 bk attorneys in your area and see what they think of the situation. Most give a free initial consult.

If you have any of your accounts with Wells Fargo you need to move the money out of WF into another bank because they have a tendency even if you do not owe them money to freeze your accounts during the bankruptcy course.

Next if you have debt like cars etc with an institution you also have a credit card debt with be aware that you may have to let the car go, if they are not willing to reaffirm it without you also reaffirming the credit card debt.

Next and this is going to be hard, have you considered another trade. I remember about a year ago a daytrader filed bankruptcy and was here on the forums, then made another trade and lost 30k dollars after the filing date, which since it was after filing date he was responsible for and it was not discharged. Daytrading is high risk and with that can come significant problems. I'm not saying you'd repeat what they did only that you might need to consider it.

As I said get the significant other sit them at the table. If you have never discussed finances between the two of you make sure to have all the bills handy on the table as well as account balances. Tell them that its not their fault but you should have done this earlier and then lay out what the problem is, and then mention that you believe bankruptcy is the only way to fix the problem. Then give them their say and it might not be good at first as they'll have to absorb it all but give em a chance to calm down and discuss it again.

[johny]

Thx fpr the quick response Scot. I understand where u are coming from...but i just think its going to devastate her. thats the only reason i am hesitating.

I am trading as a individual and am not an inc. Have no no assests except the 24k trading a/c i mentined.

Also i have a joint checking and savings bank a/c with Chase and also a chase bank issued credit card . Can they freeze the a/c and tranfer money from my checking to their credit card w/o my authorization?

Again many thanks.

[JRScott]

Most likely yes. You should move all checking and savings accounts to banks you have no debt with. Seizure of funds in a checking or savings account at the same bank is typical for credit card agreements. In essence by using the card you accepted those terms 95% of the time.

[johny]

Thx again for the helpful info Scott.

[needachance]

My advice, you have to talk to your wife or this marriage won't make it. How would it be better for her to find out after the fact that you did this behind her back?

You need a new career, even if it is stocking shelves at Walmart, you need something that is concrete, that you get paid for working.

Your current way of living is really just gambling and it is not working out for you. If you have a wife you are responsible for someone other than yourself and you need to step up to the plate and take care of your responsibilities. Continuing to play around in the stock market without having any real career goals, retirement etc, is not being responsible. It is one thing to have a consistent way of making a living, then putting some money away in an account that you CAN AFFORD TO LOSE, to play the stock market with...but when you are not providing for your family and you are still playing the stock market that is irresponsible.

You cannot ever become financially viable and plan for the future without an income to base it on.

You also need to get to a point where you are not borrowing money for anything...go to cash only and get your wife on board so you are working together to plan a budget.

I am sorry if this sounds harsh, but in my opinion you are not at a place where BK is the responsible option for you. It will just be another escape (like your dad paying your way for 2 years). Until you have a plan to build a future on the other side, you shouldn't be considering the step.

I hope that this is helpful and I am sorry if it was offensive.

[keepmine]

Honestly, I don't know where to start.
All I can say is, you're delusional if you think you have a job. Losing that amount of money plus, needing your Dad to bail you out to the tune of $80K means, you have an expensive hobby.
Stop daytrading and start looking for a real job-preferably one that carries access to health insurance .
You are nowhere near ready to file bk. You need to get your fiannces stabale before you even entertain the notion of filing bk.

[johny]

thx guys for your frank replies..

its just the pressure of thinking on how to deal with the phone calls from debtors once i default which may start soon and then the consequence of having to get my wife involved in all the mess...thats making me go crazy..

I just want to get out of this situvation before i start fresh. Yes i am an engineer and will start looking for a new career...its just that the job situvation in michigan is so bad specially for people like me in the auto industry...that i gave up looking for job last year.

guess i have to cut down on my expectations even if it means taking a hourly paid job.

[aces67]

Honestly the first thing you need to do is talk to your wife. After you do that you need to make an appointment with a lawyer and see what your options are.

You definitely need to move your bank accounts also.