Filing BK has been something on the table as a possibility for about a year or so. My husband, who is self-employed, did pretty well in business last year, and I had a part-time job for awhile, so all in all we were doing okay.
Because he was so busy, and is the better earner (I had a minimum wage job vs his real estate appraisal business), he asked me to quit last summer, so I did. My time at work took away time from him working when he needed to devote all his attention to his business.
After Thanksgiving, business took a dive, and we are waiting for it to pick back up. December's earnings were $2900 and this month is only slightly more at this point.
I have about $40k in credit card debt that is in my name. He has about $23k in his name. Both our names are on the house and HELOC. The vehicles we have (one paid for, one being paid for) are in his name.
With the business slow down, we find our cash on hand to be limited. We are being as careful as possible, but we really need to conserve. My debt repayments total ~$1k/month, his about $680. Taking my credit cards out of the equation, our financial needs are a minimum of $4000/month.
I was recently approved for the Chase hardship program on my largest card. I wish I had found out about that sooner, but I did not know it was available. I was hoping the payment would drop this month, but they told me I have to make this month's payment and that would then trigger the hardship agreement ($280/month for 5 years at 0% vs the current variable rate of 9.24% and payments over $330/month).
He just had a large order cancel tonight, so we find ourselves with less income than anticipated. We have about $8300 in the bank in his business account. We have been striving to pay off our debt and use only cash, which leaves us pretty much next to nothing to put in savings.
Tonight I canceled the pending payment on my above-mentioned Chase card. It's due on the 30th. I have never missed a payment on any card, and I am freaking out at the prospect of doing so, even though I know that common sense says to pay things like mortgage, etc first.
I don't know if I'm doing the right thing. We are stressed to the max. Our mortgage payment is $545, the HELOC about $165. We probably could not rent any cheaper. We are at this time current on all bills.
We have baby #4 due in early May. He is hoping to wait until after the medical bills are in and have me file Chapter 7. I'm fine with doing that. He does not want to file at all b/c he's afraid it will have a negative effect on his business. He says that sometimes the companies that order appraisals pull credit reports, and his fear is that he will lose business if he declares BK. So anyway, I'm willing to take the heat, so to speak.
My creditors are:
Chase x 2 (one card has only $40 on it)
Amex (jerks)
1st National Bank of Omaha
Discover
Bank of America - I would probably keep paying them
I forget what the exemptions are in Oregon, but with the state our house is in, I doubt that we have enough equity for my share to be significant. He wants to take me off the house with a quit claim deed, even though I tell him this is probably a bad idea.
If I do stop paying my cards, what happens? Can we drag it out 90-120 days before I file BK? I have looked for jobs, interviewed once, but we live in a small town/rural area. There isn't much here. You can't tell I'm pregnant, as I'm overweight, but I would have to leave any job I might get in a few months. It would be senseless to pay for childcare.
Could someone please offer advice? I've been reading but I just feel lost. I know no one can offer legal advice, but I just wonder what others would recommend given my situation.
Thank you.
Because he was so busy, and is the better earner (I had a minimum wage job vs his real estate appraisal business), he asked me to quit last summer, so I did. My time at work took away time from him working when he needed to devote all his attention to his business.
After Thanksgiving, business took a dive, and we are waiting for it to pick back up. December's earnings were $2900 and this month is only slightly more at this point.
I have about $40k in credit card debt that is in my name. He has about $23k in his name. Both our names are on the house and HELOC. The vehicles we have (one paid for, one being paid for) are in his name.
With the business slow down, we find our cash on hand to be limited. We are being as careful as possible, but we really need to conserve. My debt repayments total ~$1k/month, his about $680. Taking my credit cards out of the equation, our financial needs are a minimum of $4000/month.
I was recently approved for the Chase hardship program on my largest card. I wish I had found out about that sooner, but I did not know it was available. I was hoping the payment would drop this month, but they told me I have to make this month's payment and that would then trigger the hardship agreement ($280/month for 5 years at 0% vs the current variable rate of 9.24% and payments over $330/month).
He just had a large order cancel tonight, so we find ourselves with less income than anticipated. We have about $8300 in the bank in his business account. We have been striving to pay off our debt and use only cash, which leaves us pretty much next to nothing to put in savings.
Tonight I canceled the pending payment on my above-mentioned Chase card. It's due on the 30th. I have never missed a payment on any card, and I am freaking out at the prospect of doing so, even though I know that common sense says to pay things like mortgage, etc first.
I don't know if I'm doing the right thing. We are stressed to the max. Our mortgage payment is $545, the HELOC about $165. We probably could not rent any cheaper. We are at this time current on all bills.
We have baby #4 due in early May. He is hoping to wait until after the medical bills are in and have me file Chapter 7. I'm fine with doing that. He does not want to file at all b/c he's afraid it will have a negative effect on his business. He says that sometimes the companies that order appraisals pull credit reports, and his fear is that he will lose business if he declares BK. So anyway, I'm willing to take the heat, so to speak.
My creditors are:
Chase x 2 (one card has only $40 on it)
Amex (jerks)
1st National Bank of Omaha
Discover
Bank of America - I would probably keep paying them
I forget what the exemptions are in Oregon, but with the state our house is in, I doubt that we have enough equity for my share to be significant. He wants to take me off the house with a quit claim deed, even though I tell him this is probably a bad idea.
If I do stop paying my cards, what happens? Can we drag it out 90-120 days before I file BK? I have looked for jobs, interviewed once, but we live in a small town/rural area. There isn't much here. You can't tell I'm pregnant, as I'm overweight, but I would have to leave any job I might get in a few months. It would be senseless to pay for childcare.
Could someone please offer advice? I've been reading but I just feel lost. I know no one can offer legal advice, but I just wonder what others would recommend given my situation.
Thank you.
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