Help!Can't qualify for 7, but no job for 13 (long)

[HenriettaHen]

' "Expected the unexpected" and ready to bite the bullets if shot.'

Like... What if Mr. Ongoing Health Issues DMC were to fall down and get kilt or maimed.

Mrs. DMC would have the assets, yes - and the secured debt.

If Mr.DMC were to be incontrovertibly rendered unable to make an income, Mrs. DMC would be left holding the unpaid notes.

She's trustworthy, she'd do anything to protect you.

What huge life insurance policy will you endow her with to protect her in an emergency? Will it be judgement proof?

If you really want to prove your trustworthiness, it might be better to finish bankruptcy before planning the next one.

Just sayin'.

(You sound like my BROTHER!)

;^)

Note to Mrs. DMC - GET LEGAL COUNSEL FOR YOURSELF BEFORE SIGNING ANY TRUST AGREEMENTS WITH ANYONE.

[DeadManCrawling]

' "Expected the unexpected" and ready to bite the bullets if shot.'

Like... What if Mr. Ongoing Health Issues DMC were to fall down and get kilt or maimed.

Mrs. DMC would have the assets, yes - and the secured debt.

If Mr.DMC were to be incontrovertibly rendered unable to make an income, Mrs. DMC would be left holding the unpaid notes.

She's trustworthy, she'd do anything to protect you.

What huge life insurance policy will you endow her with to protect her in an emergency? Will it be judgement proof?

If you really want to prove your trustworthiness, it might be better to finish bankruptcy before planning the next one.

Just sayin'.

(You sound like my BROTHER!)

;^)

Note to Mrs. DMC - GET LEGAL COUNSEL FOR YOURSELF BEFORE SIGNING ANY TRUST AGREEMENTS WITH ANYONE.

Gosh. You sound bitter. Has something like this happened in your life? I am genuinely curious.

Also, you MISS THE POINT ENTIRELY. The assets are FREE OF DEBT. We don't OWE ANYTHING ON THEM. Small mortgage that will be gone soon, that's it.

Rather than sniping at me for "planning the next one" as you say, how about giving some credit for "financial planning"?

In fact, there IS a 2 million dollar life insurance policy.

Also, these are, for now, just thoughts. There are many other avenues we will be looking at.

Rather than planning for the next bk, as you imply, I think it is good to plan for ANY possible event, financially, to the best of our ability. To do otherwise would be foolish. What about a major medical issue? What about a horrible accident or some other occurrence? We can't of course foresee them all, but I think having a financial plan is vital, and a lesson we learned the hard way this time around.

We are and will be considering many different possibilities for financial planning, all of which will protect us as much as necessary.

You seem to also imply that I am setting her up to take a fall. Nothing could be further from the truth.

You see, the ASSETS will be in her name, not any debts. She will own our home, cars, retirement accounts, any valuables, etc. I would seem to be the one at risk, since everything else is or will be paid off very soon.

I will be the one with all the debts, she will be the one with all the assets. Maybe I am missing something, but if terrible things happen (my death, divorce), she will

A. Get 2 million free and clear, no taxes, no judgements if I die.

B. Own free and clear a house worth 500k, two cars, a sizeable retirement account, and two businesses that generate some decent cashflow.

I would have expected you to warn ME. . .

-dmc

[HenriettaHen]

Sorry, DMC - did not mean to sound snippy....

I'm just a little confused about your intent. You have written a LOT of posts in one month, and seem to have a lot of assets for a bankrupt person. (2 million free and clear insurance, no taxes, no judgements if you die, own free and clear a house worth 500k, two cars, a sizeable retirement account, and two businesses that generate some decent cashflow.)

Have you filed bankruptcy yourself? Which chapter?

Your plan doesn't help the poor guy who started the thread, and may be VERY bad advice for a lot of people.....

I'm a crank and I trust nobody these days - and yes, I'm a lot more bitter than I was when I started out in life as a spring chicken.

I guess my point is that bankruptcy is a mechanism of RELIEF provided by our system of government. It's amazing to me that it even still exists, given today's climate of corporate dominance over all things.

It's a second chance - a fresh start. Not a form of financial planning. I hate to hear people get creative with this stuff - it subverts the intent of the law.

I am grateful that I am being given this relief at this time in my life. If it weren't for bankruptcy relief, it would be the poorhouse or the street for many of us here.

[HenriettaHen]

Oh, and one more note for sprestige from this thread...

The IRS and Bankruptcy do most definitely communicate with each other, but they aren't trying to trip you up, necessarily. If you have made a mistake with taxes in the past, you will have to sort it out as part of your bankruptcy.

Have you been filing tax returns all along? Tax returns are the backbone of your bankruptcy. How about bank statements and check stubs? Get them all together and into a notebook.

Remember, honesty is the policy for a clean start. Get all of your papers together in a box and start organizing them and looking at your situation as calmly as possible. Try to treat it as a puzzle or other project that you are working on over a period of time.

If you are sure that you will have to file BK, then stop paying your unsecured creditors now and reserve what income you have for living expenses and care of your family while you put your affairs in order and go forward.

The worst part of bankruptcy is the fear and self-loathing. Punch it down, treat yourself right and stay out of the casino.

Remember, this is your mantra:

I'm BANKRUPT, not STUPID.

;^)

[DeadManCrawling]

Henrietta,

You make many valid points, and I agree in general with you. My situation is on the border of the bizarre, and I only explained it in depth once, while I was in the heat of anger, frustation, and confusion. I will post it without the emotion as concisely as I can later today, so you can see how this all came to be and why we are working on planning for the future.

There are so many posts in less than a month because my lower back is a mess and I work primarily at home these days. Two worng moves (maybe just one) and I could end up in worse shape or even partially paralyzed.

It IS true that what I am suggesting can be very bad advice to the wrong person in the wrong situation. It is something to be done at least 6 years before any problem such as a judgement or bk. However, done at least that far in advance, it is not only legal, moral, and ethical, it is highly recommended by financial planners and attorneys.

The problem is that very few of us work that far in advance. When we are done with our bk, we WILL work that far in advance, and do everything on the up and up legally. Right now, we have a tremendous amount of nonexempt assets and other resources that have been placed at risk due not just to our financial mistakes, but also due to lack of foresight and planning.

Our goal is to make sure it doesn't happen again. I can't imagine another time in the future when we would file bk-but then again, I never imagined THIS time, either.

-dmc

[Spartan]

There are better ways to stucture that with the use of various kinds of trusts (the legal entity, not the interpersonal kind). What if the person with all the assets gets sued and loses? You can legally protect and (and hide to most degrees) just about anything. It just may cost some time and money (and you can't do it right before planning BK)

I concur. There are trusts, limited liability partnership, LLC etc for asset protection. DMC's plan of splitting asset and liability, does not protect their asset. It only (if at all) protects from liability that incurred by him. The assets are still unprotected. DMC is assuming that the spouse is somehow liability proof.

[Spartan]

oops... Perhads the mods can split this thread. Sorry for contributing to hijacking it from the OP.