Filing in April and bought a TV

[HOMEBODY]

I am anticipating filing in a few months, probably in April or May, but because I know all my cards will be closed when I do that, even the ones that have no balance on them, I decided to go and buy a nice TV and a couple of things to go with it. I feel really guilty now and just wonder if I could just leave that card out of the BK.

I am trying to keep paying all my bills until I actually file so as not to have my credit score go too low. I can pay my bills except that it feels so disorganized that its a hit and miss with all of them. It is mainly 2nd equity lines of credit for rentals that I have, where I have lost the renters for a few months and I've have to pay the mortgages and fixing the properties. I am up all kinds of hours of the night sometimes trying to figure out who gets paid and have been late on a couple of 2nd lines of credit where I modifying and its taking forever to do in the meantime they are screwing my credit because while I am doing this they are reporting me late. I had a good system going and everyone was being paid on time until I started the modification and they changed the date and the amounts, now I've lost track of things and feel out of control.

I will be filing and reaffirming just my home which is very good interest rate, but high balance.. I figure even if I rent, it will be about the same amount I am paying now. I will be keeping the rentals but not reaffirming to protect me in the future and not paying the 2nd lines of credit and try to work on settling those if I can. I owned 3 houses which are underwater, except for one where the 1st is $186,000.00 and the 2nd is $248,000.00 and the house is worth about $340-360,000. Dont know how I will do that one, probably continue paying the 2nd. I owe about $55,000 in unsecured debts and most of them I have been able to lower the interest to 6%. Being 54 years woman old right now and single, I dont want to spend the next 10 years worrying about bills and I will never recover the money I have invested in real estate.

Anyway, I have gotten such great advise on this site and have planned my BK according to what I have learned on this site. I cant wait to file and feel relieved and a feeling of having control over my finances, something I dont have right now.

[OhioFiler]

If I read your first paragraph correctly, you bought a new TV and peripherals intending to file bankruptcy in a few months and having no intention of paying this particular debt? I would frown on such action as it may qualify as fraudulent. How much did you spend?

[Faust]

Would you be willing to reaffirm the debt? That could be an option.

[frogger]

I dont want to spend the next 10 years worrying about bills and I will never recover the money I have invested in real estate.

You will never recover the money invested in real estate, but have you run the numbers to see if you're going to continue losing? Your new start by filing bk should be a good start. A start that stops the bleeding.......

[HOMEBODY]

I do intend to keep the Best Buy card and want to reaffirm the debt I have just incurred, I bought it knowing that they would close the account even if I dont list it on my BK. Just not fair that if you keep your card and pay on it, they still close the account and dont let you use it. I like this card because you have a year to pay off and no interest. What can I do to keep this card?

I wont be losing money in the rentals if I dont pay the 2nds and do settlement with them. Even if they file a lien, its good because I can wait until the market gets better to sell and then they can get paid. My main house I owe $745,000 and I am only paying 1% interest. I am paying about $21,000 in principal a year and very little on the interest, so I rather keep that. I own 2 acres and the house was valued at a million when I purchased it, but I bought it for way under that. There is a 2nd for $83,000 and since the house is probably worth $650,000 right now if I was to sell it quick.

I own another property that I owe $160,000 on the 1st and $20,000 on the 2nd and the house is worth about $140,000.00 I just got it rented this month so it will be paying itself and if I settle the 2nd, I'll be good.

Now the other rental I owe $186,000.00 on 1st and $248,000 on 2nd. The property is worth about $350,000.00 so there is a problem there. I dont want to lose that one as the rent pays most of the expenses, I am probably negative about $300 a month if we include property taxes and insurance..but if I can settle the 2nd, it will be a good. I lowered the rent recently by $200 because of the economy, but in a few years I can hike it back up again.

Well, even if I have to continue to pay on the last rental above, I'll be ok financially if I dont have credit cards, the 2nd on my residence and the 2nd on the other house.

I have about $54,000 in unsecured credit cards that I've probably used because the rentals were using up my cash. I lost one tenant over the summer and he destroyed my house, on the smaller rental, the house was vacant most of last year. Payments on those cards are about $950 a month, so I will have another $950 free.

I am trying to make a logical decision here and not get too emotional about losing my good credit rating which was so important to me through the years, but my real estate investments have forced me to make this decision.

[flyinbroke]

There is no such thing as "not listing it on your BK" if you have a card with a balance. You cannot pick and choose. You have no choice from a legal standpoint but to list them if you have a balance on the card. You can only reaffirm after the fact. You may have to call them in advance (incognito of course) and ask what their policy for BK is. Not sure if they will keep it open; anyone already successfully discharged here ever reaffirm any unsecured debt?

As for emotions...BK is a business decision. Nothing more, nothing less, nothing personal.

[HGolightly]

Also, Best Buy will close your account - even if you have a zero balance on it (I know, they closed my daughter's and I was only the co-signer!). You can pay off the card after the discharge if you wish.