I think they take usage into account when measuring your riskiness, such as when deciding whether or not to cut credit limits, but I doubt it matters for "recovery" purposes, once the money has been spent.
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filed chapter 13..confirmed...converted to chapter 7...DISCHARGED! -
BB makes a good point. Every BK attorney I spoke with 2 1/2 years ago said if I could live on 75% of my take-home pay, then it might be better to wait until I retire (I'm in my mid-50's) and eventually file a BK 7. The healthcare/insurance issue is important. Don't trade in one item and wind up owing on another.
While noone is "judgment-proof," many folks are in a situation where a judgment cannot be acted upon. Pay yourself first and take care that you protect your health and retirement accounts, if you have any.Comment
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so what if your household makes about 1ook a year, we own a home we're upside down in, have 130K in debt, two car payments and no other assets, will they still try to sue, since we are "high income" but paycheck poor?Comment
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Be proactive. Assume a suit. You have good wages, a home (regardless of whether or not you are upside down,) etc. Sit down and figure out if you can live on 75% of takehome pay after covering only your necessary bills; not to include any unsecured. Can you survive this for a little while? If so, then a suit (which seems possible) could lead to a lien on home and/or future wage garnishment.Comment
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