I'm lost? II

[Guest123]

Just asked in the chapter13 section how this all worked. I know how chapter7 works as I had filed almost 9 years ago. But not sure how it would work since I'm married with a house.

We make really good money but have been living way past our means.
We could pay all of our bills but we would not have anything for food, gas or anything else that comes up.

We like our house and don't want to do anything to lose it. Up until recently we have been current on all our bills. We were lucky to pay some of the utilities up a few months to have some extra cash. Those bills are starting to come back and we need a permenant solution to fix our problem.

Sadly most of the credit we use we don't have items to show for it.

We have 2 cars we are paying on and 2 quads we are also paying on. We would like to keep them them along with the house. We have a second mortgage that we are still current on. They only thing we need help with is the credit cards.

I do not want to look into a consumer credit counseling service as I have dealt with them in the pass and don't trust them.

Right now our current plan is to just let some of the credit cards go and focus on paying off one at a time.
Our credit is shoot so a bankruptcy if possible would be great if it could only cover the credit cards and not effect the cars, house, or quads.

What do you think our best option would be?

Thanks

[Flamingo]

Please see my response to you under the Chapter 13 Section for your posting because you provide more information here than you did in your initial posting in that forum. Please try to refrain from multiple same postings in multiple forums as it confuses the posters who wish to respond to you.

[Guest123]

Please see my response to you under the Chapter 13 Section for your posting because you provide more information here than you did in your initial posting in that forum. Please try to refrain from multiple same postings in multiple forums as it confuses the posters who wish to respond to you.

I'm sorry but isn't this the Chapter 7 sub-forum and my question is definately related.

And your response was not that helpful. First I didn't give enough information to for you to make a correct assumption that this is a cycle or I'm a serial what ever...which is funny.

One was asking about chapter 7 and the other about chapter 13! So whats so confusing?

[researchnerd]

Flamingo's statement was that you may be a serial filer, because you have filed Ch7 in the past. You did provide enough info to make that assumption. No judgment here, but the Trustee is likely to look more carefully at your case because of it.

Take a run through the online means test to see if you might qualify for a Ch7. If you earn over the median in your jurisdiction you can possibly still file Ch7, but it will depend on how much $$ you have left over after paying all of your "reasonable and necessary" living expenses.

Unfortunately, your quads will not qualify as reasonable and necessary. If you owe less on them than they are worth, the Trustee may want to sell them to help pay your creditors.

You say that you only need help with the credit cards, and that's great, but if you're going to go to the trouble and expense of filing bankruptcy, I strongly suggest that you get rid of all the debt you possibly can. If you are underwater on your home, cars, or quads, it may be time to let them go.

[angles]

As you probably already know, you don’t have a choice to keep any items you own outside of the BK with exception of the exemptions. If you file you will have to include your house, quad, cash, cars, everything. So you may want to look at your state’s exemptions first to see what you could keep and what you would loose if you filed for a BK 7 and then go from there.

[Flamingo]

I'm sorry but isn't this the Chapter 7 sub-forum and my question is definately related.

And your response was not that helpful. First I didn't give enough information to for you to make a correct assumption that this is a cycle or I'm a serial what ever...which is funny.

One was asking about chapter 7 and the other about chapter 13! So whats so confusing?

Nothing is confusing - forum rules indicate for posters to refrain from making multiple same postings in various forums. You could have put one posting under General Bankruptcy Talk which would have covered both Chapters. Multiple postings about the same subject matter creates confusion and duplicate postings are usually deleted and kept in one forum. However, since you listed in your posting in this forum (Chapter 7) that you filed a previous BK and did not list that in the Chapter 13 forum, and were confused about what chapter you might be able to file, I left both threads alone but indicated more information about your situation was in the Chapter 7 forum.

My posting is helpful to you to realize that whatever chapter you file you will probably fall under more scrutiny than the average first time filer due to your previous bankruptcy. Serial filers (those filing BK two or more times) may have to provide more information than first time filers so you need to know the ramifications of your situation. Right now your debts outweigh your assets so you are insolvent and need to investigate filing. At this point you are struggling and all it will take is a cut in hours or the loss of a few paychecks to do you in. We too made a lot of money; all it took was the job loss to have us filing a Chapter 13 one year later. It's hard...and easy to ignore how one got to the point of extreme debt until reality hits you in the face.

Right now you are struggling to make minimum payments and keep your house. You must know you really need to figure out and put all emotions aside and figure out if you can actually really afford to keep your house. BK will take your credit card debt away but it will not solve any cash flow problems you are having. It would benefit you greatly to get several free Bk consultations - take with you a complete listing of all your debts, monthly payments, listing of assets, sources of income, paystubs and most recent state and federal tax returns. Also take a copy of your past discharge papers because if you filed a Chapter 7 previously, 8 years from that filing date have to pass before you can file Chapter 7 again. If you are making the money you say you are making, it is quite possible you will have to file a Chapter 13. The new law is set up to ensure those that can pay at least part of their debts pay via a Chapter 13. The attorneys you consult with with set you straight as to what you can and cannot do in the state in which you reside and will also let you know what they think if you feel you should investigate debt consolidation.

Also note that if you file again, your first Chapter 7 is on your credit reports for 10 years from the date you filed that petition. If you file again, either chapter, you will have two bankruptcies showing on your credit reports. It will be very difficult for quite a while for you to obtain any credit or, if you give up your home, obtaining another mortgage. You have a lot to consider and figure out and I just wanted to get that information to you to think about that. Wishing you the best of luck in getting everything resolved.